Hensoldt (HAG) Q2 2026 earnings summary

Executive summary

• Order intake doubled year-over-year to €2,812 million, driving the order backlog above €10 billion and providing strong visibility into the 2030s, with growth across all major KPIs and robust defense demand.

• Revenue grew 24% year-over-year to €1,167 million, with core revenue (excluding pass-throughs) up 18% and strong momentum in ground-based systems and air defence.

• Adjusted EBITDA increased 29% to €137 million, with margin expansion to 11.8% and profitability outpacing revenue growth, especially in Optronics.

• Major contract wins and technology partnerships reinforce a multi-year investment cycle and platform-agnostic growth.

• Strategic investments in capacity, technology, and international expansion underpin long-term growth, including the acquisition of Nedinsco Group for €87 million.

Financial highlights

• Order intake: €2,812 million (+100% year-over-year); book-to-bill ratio of 2.4x; order backlog over €10 billion, up 46% year-over-year.

• Revenue: €1,167 million (+24% year-over-year); core revenue up 18%.

• Adjusted EBITDA: €137 million (+29% year-over-year); margin 11.8%.

• Adjusted EBIT: €70 million (+43% year-over-year); margin 6.0%.

• Adjusted free cash flow: -€136 million, reflecting seasonal patterns, investments, and acquisition outflows.

• Group net loss improved to €-13 million from €-44 million in H1 2025.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: revenue expected at approximately €2,750 million, adjusted EBITDA margin of 18.5%-19%, and book-to-bill ratio between 1.5x and 2x.

• Order intake for FY2026 expected between €4,125 million and €5,500 million.

• Cash conversion forecast at around 50%, with leverage targeted at 1.5x and dividend payout of 30%-40% of adjusted net income.

• Midterm outlook: annual organic revenue growth of 15%-20%, margin expansion of 50 basis points per year, and cash conversion normalizing to 50%-60%.

• Outlook remains unchanged from end of 2025, with confidence in continued positive development.