Boom in Orders Propels Hensoldt's Revenue Skyward, Thanks to Eurofighter Systems! But Don't Pop the Champagne Yet...
Decision on the Matter Pending by the Commission
There's some good news from Taufkirchen near Munich - Hensoldt, the defense electronics giant, is raking in the dough! The company's Q1 order intake, totaling over 701 million euros, came in with a healthy five percent increase compared to last year.
But guess what's really driving the growth? Eurofighter systems! With the rearmament in Europe, orders for these battle-tested jets have sent Hensoldt's order backlog soaring to an astounding 6.9 billion euros! And revenues are following suit, jumping by a fifth to a hefty 395 million euros.
However, the celebration might have to wait. Despite the revenue surge, Hensoldt is still bleeding money. The net loss for shareholders more than doubled to 30 million euros. Sure, profits before interest, taxes, depreciation, and amortization (EBITDA) did hit 30 million euros, but that's a nine percent drop compared to the previous year.
Oliver Dörr, Hensoldt's CEO, remains optimistic, predicting a year-end revenue of 2.5 to 2.6 billion euros. He anticipates around 18% of that revenue will translate into profit. Unfortunately, the Q1 EBITDA margin only managed 7.6 percent, down from a robust 10.2 percent last year.
So, while Hensoldt's no doubt happy about the revenue increases, they've got work cut out if they want those profits to start looking as sharp as their radar systems!
- Arms Industry
- Arms
- Wars and Conflicts
- Eurofighter
- Bundeswehr
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Increase in Orders and Revenue for Hensoldt
In the first quarter of 2025, HENSOLDT, a leading European defense technology company, posted an impressive growth in both order intake and revenue. The company's order intake surged to EUR 701 million from EUR 665 million in the previous year, driven primarily by contracts related to Eurofighter Mk1 radars and the Eurofighter Halcon program[1][4].
As a result, HENSOLDT's order backlog hit a new record of EUR 6,929 million, an 18% increase from the same period last year[1][4]. Revenue for the quarter inflated to EUR 395 million, an uptick from EUR 329 million in Q1 2024, largely due to strong performance in the Optronics segment and additional contributions from the ESG Group's activities[1][3].
Impact on Profits
Despite this positive trend in order intake and revenue, HENSOLDT's adjusted EBITDA declined slightly to EUR 30 million from EUR 33 million last year[4]. Additionally, the company reported a net loss of EUR 30 million in Q1 2025, compared to a net loss of EUR 14 million in Q1 2024. This resulted in a basic and diluted loss per share from continuing operations of EUR 0.26, up from EUR 0.12 a year ago[3].
Expected Revenue for the Year
Looking forward, HENSOLDT maintains a positive outlook for the full year 2025, projecting revenue to range between EUR 2,500 and 2,600 million. The company is targeting an adjusted EBITDA margin of approximately 18%, supported by sustained investment in European and German defense capabilities[1][4]. This outlook mirrors the ongoing geopolitical tensions and increased defense spending in Europe and Germany[1].
- The healthy surge in Hensoldt's Q1 order intake, reaching over 701 million euros, is largely due to contracts associated with Eurofighter Mk1 radars and the Eurofighter Halcon program.
- Hensoldt's order backlog has skyrocketed to an astounding 6.9 billion euros, showing a significant 18% increase from the previous year, mainly attributed to Eurofighter systems orders.
- The positive trends in order intake and revenue, despite the decline in adjusted EBITDA to EUR 30 million, have led Hensoldt to project a year-end revenue of 2.5 to 2.6 billion euros.
- With around 18% of the projected year-end revenue expected to translate into profit, the company aims for an adjusted EBITDA margin of approximately 18%.
- To achieve these profits, Hensoldt must work diligently, ensuring their radar and defense systems technology remains at the forefront of the arms industry, where great demand and substantial investments persist.
