Hensoldt (HAG) Q3 2025 earnings summary

Executive summary

• Order intake for the first nine months reached €2,017 million, up 8.6%–9% year-over-year, driven by Eurofighter and TRML-4D radar programs, including support for Ukraine.

• Revenue increased to €1,536 million, up 11.5%–12% year-over-year, with growth in both Sensors and Optronics segments.

• Adjusted EBITDA rose to €211 million, with a margin of 13.7%, and adjusted EBIT reached €122 million.

• Record order backlog of €7.1 billion provides strong visibility for future revenues.

• Major contracts secured in Sensors and Optronics, including Eurofighter, TRML-4D for Ukraine/Switzerland, and Luchs II.

Financial highlights

• Book-to-bill ratio rose to 1.3x for 9M 2025, with guidance raised to 1.6–1.9x for the full year.

• Adjusted free cash flow improved to -€119 million, supported by advance payments.

• Net income reported at -€33 million, impacted by non-cash refinancing effects.

• Sensors segment revenue up 9.3% to €1,317 million; Optronics up 27%–27.5% to €232 million.

• Adjusted EBITDA margin at 13.7%; Sensors margin 15.1%, Optronics margin improved to 5.1%.

Outlook and guidance

• Full-year order intake expected to reach €4.4 billion, with book-to-bill guidance raised to 1.6–1.9x.

• Revenue guidance specified at €2,500–€2,600 million for 2025.

• Adjusted EBITDA margin guidance set at 18% or higher.

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

• Optronics EBITDA margin expected to reach 14% in 2025, with potential for further improvement mid-term.

• Sensors margin expected at approximately 19% for the year.