In This Article:
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Order Intake: EUR701 million in the first quarter.
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Revenue: Increased to EUR395 million, driven by strong performance in the optronics business.
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Adjusted EBITDA: EUR30 million with a margin of 7.6%.
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Book-to-Bill Ratio: 1.8 times, with a backlog over EUR6.9 billion.
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Core Revenue Growth: 31% increase, 6% organic growth.
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Adjusted Free Cash Flow: Minus EUR107 million, influenced by working capital investments.
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Optronics Revenue Growth: 45% growth in the German entity.
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New Financing Agreement: EUR1.8 billion syndicated loan, secured up to 2032.
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Guidance for 2025: Revenue expected between EUR2.5 billion and EUR2.6 billion, with an adjusted EBITDA margin of around 18%.
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Pipeline Growth: Expected to increase by EUR3 billion to EUR40 billion for 2025-2027, and by EUR9 billion to EUR55 billion by 2030.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hensoldt AG (HAGHY) is well-positioned to benefit from increased defense budgets in Germany and Europe, with a pipeline expected to grow significantly by 2030.
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The company has entered a strategic partnership with Quantum Systems, enhancing its capabilities in software-defined defense and opening international market opportunities.
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Hensoldt AG (HAGHY) reported a strong order intake of EUR 701 million in the first quarter of 2025, driven by key contracts such as the Eurofighter programs.
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The company's new logistics center is expected to significantly enhance capacity and process efficiency, supporting future growth.
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Hensoldt AG (HAGHY) has successfully refinanced its debt, securing long-term financial stability and flexibility up to 2032.
Negative Points
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The ramp-up of the new logistics center led to a temporary slowdown in production, impacting revenue and margins in the first quarter.
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The sensors segment experienced a slower start due to the logistics transition, affecting productivity and resulting in lower margins.
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There is uncertainty regarding the timeline for increased defense spending and its impact on Hensoldt AG (HAGHY)'s revenue growth.
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The company faces challenges in scaling production to meet future demand, requiring careful capacity planning beyond 2027.
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Hensoldt AG (HAGHY) must manage the integration of external engineering resources to free up internal capacity, which could impact operational efficiency.
Q & A Highlights
Q: What are the main risks or bottlenecks to achieving the ramp-up in the sensors division, and what assumptions are made for the EUR1 billion additional revenues in 2030? A: Christian Ladurner, CFO, stated that there are no substantial risks in the sensors division as processes are improving. The growth is expected to be weighted towards the second half of the year, which is typical for their business. CEO Oliver Dorre mentioned that the EUR1 billion increase assumes a conservative 2.5% GDP spending in Europe, including Germany.