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 defense contracts in Sensors and Optronics, especially for armored vehicles and Eurofighter programs; book-to-bill ratio reached 3.0x.

• Revenue grew 26% year-over-year to €496 million, with core revenue up 15% excluding pass-through effects.

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

• Order backlog reached a record €9.8 billion, providing long-term revenue visibility into the 2030s.

• Strategic focus on scaling production, supply chain security, and software-defined defense, 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 year-over-year, supported by higher customer advance payments; remained negative at €-95 million to €-115 million.

• 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.

• Adjusted free cash flow conversion targeted at 40%; net leverage to remain around 1.5x.

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

• Closing of Nedinsco acquisition and new automotive supplier partnerships to support future growth.