Hensoldt (HAG) Q3 2025 earnings summary

Executive summary

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

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

• Book-to-bill ratio reached 1.3x, pushing order backlog to a record €7.1 billion, providing strong visibility for future revenues.

• Major contracts secured or expected include Eurofighter Mk1 radar (€180m), TRML-4D radars for Ukraine and Switzerland (€200m), P-8 Poseidon sustainment (€130m), and Luchs II vehicle (€850m).

• Strategic refinancing completed, enhancing financial flexibility and reducing long-term interest burden.

Financial highlights

• Adjusted EBITDA increased to €211 million, margin at 13.7%, driven by higher Optronics volumes.

• Adjusted EBIT reached €122 million for 9M 2025; EBIT increased 18.8% to €48 million.

• Adjusted free cash flow at -€119 million, supported by advance payments and working capital investments.

• Net income reported at -€33 million, impacted by non-cash refinancing effects; earnings per share improved to €-0.26.

• Sensors segment revenue at €1,317 million, Optronics at €232 million, both showing strong growth.

Outlook and guidance

• Book-to-bill guidance for 2025 raised to 1.6–1.9x, reflecting strong order momentum and ongoing parliamentary approvals.

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

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

• Free cash flow conversion target remains at 50–60%; net leverage target at 1.5x.

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