Hensoldt (HAG) Q4 2024 earnings summary

Executive summary

• FY 2024 results exceeded guidance, with record order intake, revenue growth, and profitability across all divisions, supported by major operational milestones and successful ESG integration.

• Strategic initiatives included a new divisional setup, digitalization, ERP transformation, and talent expansion, laying the foundation for sustainable growth.

• Major contract wins in radar, digital sights, and optronics, along with a new logistics center, supported production ramp-up.

Financial highlights

• Order intake reached €2.904 billion (+39% year-over-year), with a book-to-bill ratio of 1.3 and order backlog exceeding €6.6 billion.

• Revenue increased 21% to €2.24 billion, with core revenue growth of 9%.

• Adjusted EBITDA rose 23% to €405 million, margin 19.4% (before pass-through), and adjusted EBIT grew 20% to €295 million.

• Adjusted free cash flow was €249 million, up 26%, with a cash conversion rate of 62%.

• Net leverage reduced to 1.6x at year-end 2024, outperforming target.

• Dividend per share proposed at €0.50, a 25% increase, with a payout ratio of 30–40% of adjusted net income.

Outlook and guidance

• 2025 guidance: revenue €2.5–2.6 billion, book-to-bill ratio around 1.2, adjusted EBITDA margin 18–19%, and net leverage targeted at 1.5x.

• Optronics margin expected to improve from 7% to 10% in 2025.

• Medium-term targets: 10% average annual organic revenue growth, adjusted EBITDA margin 19–20%, and free cash flow conversion of 50–60%.

• Order intake expected to grow faster than revenue, with strong backlog coverage for 2025.