Hensoldt (HAG) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 order intake of €1,483 million, more than doubling year-over-year, driven by major armored vehicle and Eurofighter programs, with book-to-bill ratio at 3.0x and order backlog reaching €9.8 billion.

• Revenue grew 26% year-over-year to €496 million, with strong growth in both Sensors and Optronics segments and significant pass-through revenue.

• Adjusted EBITDA increased 47% to €44 million, with margin improving to 8.9% from 7.6% year-over-year.

• Free cash flow improved, supported by high advance payments and disciplined capacity expansion, though remained negative due to investments.

• Strategic focus on scaling production, supply chain security, and software-defined defence, with key acquisitions and partnerships underway.

Financial highlights

• Order intake: €1,483 million (+111% YoY); revenue: €496 million (+26% YoY); order backlog: €9.8 billion (+41% YoY).

• Adjusted EBITDA: €44 million (8.9% margin, up from 7.6%); adjusted EBIT: €12 million (2.3% margin).

• Adjusted free cash flow improved but remained negative at €-95 million to €-115 million, supported by higher customer advance payments.

• Group net loss reduced to €-20 million from €-31 million; EPS improved to €-0.16 from €-0.26.

• Cash and cash equivalents at €820 million as of March 31, 2026.

Outlook and guidance

• FY 2026 guidance confirmed: revenue ~€2,750 million, adjusted EBITDA margin 18.5–19.0%, net leverage 1.5x–2.0x, dividend payout 30–40% of adjusted net income.

• Management expects FY2026 order intake between €4,125 million and €5,500 million, with book-to-bill ratio forecasted at 1.5x to 2.0x.

• High order intake expected to be sustained, with further major contract wins anticipated.

• Cash conversion expected around 40%, with net leverage at 1.5x.

• Pipeline of major contracts and funded procurement decisions support sustained growth.