Hensoldt (HAG) Q1 2025 earnings summary

Executive summary

• Order intake reached €701 million in Q1 2025, up 6% year-over-year, driven by Eurofighter contracts and robust demand in Optronics and Sensors, with a record order backlog of €6.9 billion and a book-to-bill ratio of 1.8x.

• Revenue increased 20% to €395 million, led by 45% growth in the German Optronics unit and solid Sensors performance.

• Adjusted EBITDA margin was 7.6% (down from 10.2% in Q1 2024), reflecting product mix and temporary logistics ramp-up effects.

• Net loss widened to €31 million (EPS: -€0.26), impacted by higher interest, tax expenses, and operational issues.

• Strategic partnership with Quantum Systems and comprehensive refinancing enhance software-defined defense capabilities and financial flexibility.

Financial highlights

• Q1 2025 revenue: €395 million (+20% YoY); Optronics segment revenue up 45% in Germany.

• Adjusted EBITDA: €30 million (margin 7.6%), down from €33 million (10.2%) in Q1 2024.

• Adjusted EBIT: €3 million, impacted by logistics center ramp-up; net income: -€31 million.

• Free cash flow: -€107 million, reflecting seasonal working capital build and infrastructure investments.

• Book-to-bill ratio: 1.8x; order backlog exceeds €6.9 billion.

Outlook and guidance

• 2025 revenue expected at €2.5–2.6 billion; adjusted EBITDA margin 18–19%.

• Book-to-bill ratio targeted at 1.2x for 2025; net leverage target 1.5x.

• Dividend payout ratio to remain at 30–40% of adjusted net income.

• Growth expected to accelerate in H2 2025 as logistics and production normalize.

• Medium-term ambition: 10% average annual revenue growth; 2030 revenue target raised to €6 billion.