EQS-News: HENSOLDT achieves record order backlog in financial year 2024 – guidance for all key figures met, partly exceeded

Financial year 2024: HENSOLDT achieves record order backlog – guidance for all key figures met, partly exceeded

• Order intake exceeds expectations at EUR 2,904 million (previous year: EUR 2,087 million)
• Book-to-bill ratio improves to 1.3x (previous year: 1.1x)
• Revenue grows to EUR 2,240 million (previous year: EUR 1,847 million)
• Adjusted EBITDA increases to EUR 405 million (previous year: EUR 329 million)
• Adjusted EBITDA margin before pass-through business is above expectations at 19.4% (guidance: 18-19%)
• Adjusted free cash flow grows by 26% to EUR 249 million (previous year: EUR 198 million
• Dividend of EUR 0.50 per share proposed (previous year: EUR 0.40)

Taufkirchen, 27 February 2025 - The HENSOLDT Group ("HENSOLDT") continued its profitable growth trajectory in the 2024 financial year, meeting its guidance and exceeding it in key performance indicators. The company is thus consolidating its position as one of the leading companies in the European defence electronics market. With an order intake of EUR 2,904 million, HENSOLDT once again significantly increased its already very high order volume of the previous year (previous year: EUR 2,087 million). Revenue improved to EUR 2,240 million. This represents an increase of 21.3% compared to the previous year (previous year: EUR 1,847 million). The core business grew by around 9% over the previous year when adjusted for the business activities of the Electronics Systems and Logistics (ESG) division. As a result of the positive business development, adjusted EBITDA increased to EUR 405 million (previous year: EUR 329 million). At 19.4%, the adjusted EBITDA margin before pass-through exceeded expectations (guidance: 18-19%). At EUR 249 million, adjusted free cash flow exceeded the previous year's figure by more than EUR 50 million (previous year: EUR 198 million).

Oliver Dörre, CEO of HENSOLDT, says: "The world continues to be characterised by a multitude of conflict hotspots, and Europe in particular needs to sustainably expand its defence capabilities. The demand for sophisticated electronic defence and security solutions such as those offered by HENSOLDT will continue to grow in the coming years. This is reflected in our very high order intake in the 2024 financial year, which significantly exceeded our expectations. Our European partner countries made a significant contribution to this with around 40%. At the same time, we are progressing as planned with the implementation of our "North Star" strategy. Overall, we are ideally positioned to achieve our ambitious target of EUR 5 billion in revenue by 2030."

Christian Ladurner, CFO of HENSOLDT, explains: "A new record high in the order backlog, a further increase in revenue and outstanding profitability - these are the key successes of our 2024 financial year. Once again, we have kept our promises and met or exceeded our guidance and demonstrated reliability. We remain on a highly profitable growth path. We are on track with our capacity expansion and our digitalisation and efficiency initiatives. We have also successfully completed the integration of the ESG Group. The course is set for the long-term positive development of our company."

Strong order intake leads to record order backlog

At EUR 2,904 million, order intake in the 2024 financial year was once again substantially above the already very high level of the previous year (EUR 2,087 million). In the Sensors segment, orders for TRML-4D radars, for the close-range and short-range air defence system (LVS NNbS) and for Spexer radars for the Skyranger air defence system were decisive for the increase. In addition, a contract for logistics services for the German Bundeswehr (ZEBEL) was won. An order for additional TRS-4D radars for the German Navy's F126 class frigates was also booked.

Order intake in the Optronics segment increased significantly by 45.1% compared to the same period of the previous year. The 2024 financial year was characterised by orders for the Leopard 2 platform and the modernisation of sensors for the Bundeswehr's Fennek reconnaissance vehicles (BAA-III) as well as for periscopes and optronic mast systems for the U212 class submarines. The company also won orders related to "Final Focus Metrology" (FFM). Overall, the order backlog at Group level climbed to a record level of EUR 6,644 million, an increase of 20% compared to the previous year.

Between October 2024 and January 2025 alone, HENSOLDT recorded an order intake of more than EUR 1.4 billion, to which all business units contributed. Major orders such as the contract extension for the ECRS Mk1 project (Eurofighter Common Radar System Mark 1) booked in January 2025 with an order value of around EUR 350 million played a major role in this.

The company's revenues increased in line with the market dynamics to EUR 2,240 million in the 2024 financial year (previous year: EUR 1,847 million). Growth in the core business amounted to 9% adjusted for the business activities of the ESG Group, while pass-through business continued to decline. HENSOLDT thus continues to successfully convert its high order backlog into profitable revenue. Accordingly, the book-to-bill ratio of 1.3x was at a high level and even exceeded the forecast.

Profitability and free cash flow both above expectations

Adjusted EBITDA totalled EUR 405 million for the full year 2024, up significantly from EUR 329 million in the previous year. At 19.4%, the EBITDA margin excluding pass-through business exceeded expectations (guidance: 18-19%). The excellent development in profitability was mainly driven by further economies of scale, particularly in the radar business. The strong contribution from ESG and the realisation of cost synergies also had a positive impact.

The adjusted free cash flow of EUR 249 million (previous year: EUR 198 million) was also above expectations. The ESG Group's operating business made a positive contribution to the improvement in HENSOLDT's free cash flow. In addition, growth investments were well balanced out by advance payments from our customers.

Dividend proposal and outlook for the 2025 financial year

Due to the successful business performance, the Management Board of HENSOLDT will propose to the Supervisory Board and the Annual General Meeting a dividend distribution of EUR 0.50 per share. This represents an increase of 25% (+EUR 0.10) compared to the previous year.

HENSOLDT anticipates continued positive business development for the 2025 financial year. The company expects revenue of EUR 2,500 to 2,600 million and a book-to-bill ratio of around 1.2x. In future, profitability will be reported as an adjusted EBITDA margin and is expected to be around 18%. This corresponds to an adjusted EBITDA margin before pass-through of 19%.

Key figures

The preliminary results for the 2024 financial year are available on the Investor Relations website of HENSOLDT AG. The audited consolidated financial statements will be published on 27 March 2025. The results for the first quarter of 2025 are expected to be published on 7 May 2025.

About HENSOLDT

HENSOLDT is a leading company in the European defence industry with a global reach. Based in Taufkirchen near Munich, the company develops sensor solutions for defence and security applications. As a system integrator, HENSOLDT offers platform-independent, networked sensors. At the same time, the company is driving forward the development of defence electronics and optronics as a technology leader and investing in new solutions based on software-defined defence. In addition, the company is expanding its range of offers to include new service models and is extending its portfolio of system solutions. In 2024, HENSOLDT achieved a turnover of 2.24 billion euros. Following the acquisition of the ESG Group, the company employs around 8,400 people. HENSOLDT is listed on the Frankfurt Stock Exchange in the MDAX.

www.hensoldt.net

Press contact HENSOLDT

Joachim Schranzhofer  T: +49 (0)89.51518.1823

 M: joachim.schranzhofer@hensoldt.net