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HENSOLDT AG (DE:HAG)
XETRA:HAG
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HENSOLDT AG
(XETRA:HAG)
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Rating:64Neutral
Price Target:
€94.00
▲(13.32% Upside)
HENSOLDT AG's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust order growth and future visibility. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation, balancing the overall score.
Positive Factors
Strong Order Backlog
A record order backlog provides excellent visibility for future growth, ensuring sustained revenue streams and operational stability.
Revenue Growth
Consistent revenue growth demonstrates expanding market reach and product adoption, supporting long-term business expansion.
Increased Book-to-Bill Guidance
Higher book-to-bill guidance indicates strong demand and efficient order fulfillment, enhancing future revenue predictability.
Negative Factors
High Leverage
High leverage poses financial risks, potentially limiting flexibility and increasing vulnerability to economic downturns.
Declining Profit Margins
Decreasing profit margins can impact overall profitability, necessitating cost management to maintain financial health.
Negative Free Cash Flow
Negative free cash flow indicates cash management challenges, potentially affecting investment capacity and liquidity.
HENSOLDT AG (HAG) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€10.62B
Dividend Yield0.59%
Average Volume (3M)536.28K
Price to Earnings (P/E)116.7
Beta (1Y)1.13
Revenue Growth14.89%
EPS Growth619.09%
CountryDE
Employees8,986
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.10
Shares Outstanding115,500,000
10 Day Avg. Volume473,044
30 Day Avg. Volume536,278
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)4.59
Price to Sales (P/S)1.79
P/FCF Ratio35.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€96.50Price Target Upside16.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
HENSOLDT AG Business Overview & Revenue Model
Company DescriptionHensoldt AG, together with its subsidiaries, provides defense and security electronic sensor solutions worldwide. It offers air surveillance, airborne, ground based, security, naval and coastal, and space radars; identification friend or foe and secure data links; and commercial shipping solutions. The company also provides airborne, vehicle, surveillance, and maritime optronics; space optics; optronic sensor devices; and sights, scopes, and night-vision attachments. In addition, it offers electronic support/SIGINT products, receivers, direction finders, electronic attackers/jammers, self-protection EW software suites and ground support stations, and electronic warfare systems. Further, the company provides avionics, including airborne computing, flight and mission data recording and management, connectivity, mission management/pilot assistance, video management, unmanned, mission planning support, data analysis and evaluation, and cloud solutions, as well as integrated airborne solutions; and counter UAV solutions, and command and control software products. Additionally, it offers products and system support, simulation, and training services; and antenna, cabling, shelter, and tester solutions. The company is headquartered in Taufkirchen, Germany.
How the Company Makes MoneyHENSOLDT AG generates revenue primarily through the development and sale of advanced sensor technologies and systems to governments and defense contractors. The company's revenue model is predominantly based on long-term contracts with national defense ministries and international defense organizations, which provide a steady stream of income. Key revenue streams include the sale of military radar systems, electronic warfare solutions, and related services such as maintenance and upgrades. Additionally, HENSOLDT benefits from strategic partnerships with other defense corporations and participation in defense procurement programs, which further enhance its market presence and earnings potential. The company also invests in research and development to innovate and expand its product offerings, ensuring continued growth in a competitive market.
HENSOLDT AG Earnings Call Summary
Earnings Call Date:Nov 07, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in order intake and revenue, with a record order backlog providing excellent visibility. The company has raised its book-to-bill guidance and secured major contracts. Despite the positive momentum, the logistical ramp-up temporarily impacted revenue growth, and ongoing investments in working capital affected cash flow. Overall, the sentiment is positive, with strong future growth expectations.Q3-2025 Updates
Positive Updates
Strong Order Intake and Revenue Growth
Order intake reached more than EUR 2 billion, exceeding the prior year figure by 9%. Revenue increased to EUR 1.5 billion, with core revenue growing by 14%.
Record Order Backlog
Order backlog reached a new record level of EUR 7.1 billion, providing excellent visibility for future growth.
Increased Book-to-Bill Guidance
The company raised its book-to-bill guidance from around 1.2x to a range of 1.6x to 1.9x for 2025.
Major Contracts Secured
Secured a major sustainment contract for the German P-8 Poseidon program worth EUR 130 million and expects further orders for radar systems with a combined volume of around EUR 380 million.
Improved EBITDA Margin
Adjusted EBITDA increased to EUR 211 million with an adjusted EBITDA margin of 13.7%, driven by higher volumes and synergies from the ESG acquisition.
Optronics Segment Growth
Optronics achieved revenue growth of 27% in the first 9 months, with an adjusted EBITDA reaching EUR 12 million.
Negative Updates
Logistical Ramp-Up Impact
The logistical ramp-up temporarily moderated the pace of revenue growth in 2025, impacting the Sensors segment's performance initially.
Ongoing Investments in Working Capital
Continued investments in working capital resulted in an adjusted free cash flow of minus EUR 119 million for the first 9 months.
Company Guidance
During the Hensoldt 9M 2025 results call, CFO Christian Ladurner provided updated guidance, highlighting a significant increase in the book-to-bill ratio for 2025, revised to a range of 1.6x to 1.9x, up from around 1.2x. The company anticipates a robust finish to 2025, with order intake projected to grow from over EUR 2 billion in the first nine months to approximately EUR 4.4 billion by year-end. Revenue for 2025 is expected to be around EUR 2.5 billion, with an adjusted EBITDA margin of at least 18%. The Optronics segment is expected to contribute significantly, with a projected order intake of approximately EUR 1.4 billion, driven by contracts like the EUR 850 million Luchs II reconnaissance vehicle. Additionally, Hensoldt maintains a cash conversion target of 50% to 60% and a net leverage goal of around 1.5x. The company is also preparing for increased production capacity, investing EUR 80 million in a new site for air defense radars, set to ramp up production from 2027 onwards.HENSOLDT AG Financial Statement Overview
Summary
HENSOLDT AG shows strong revenue growth and operational efficiency, though profitability margins have slightly declined. The balance sheet reflects high leverage, posing potential risks. Cash flow generation is strong, supporting financial health. Continued focus on improving profit margins and managing debt levels is crucial.Income Statement
HENSOLDT AG has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 1.30%, indicating a positive trajectory. However, the gross profit margin has slightly decreased to 21.53% from 22.71% in the previous year, and the net profit margin has also declined to 3.90% from 4.81%. Despite these decreases, the company maintains a stable EBIT margin of 7.83% and an EBITDA margin of 15.24%, reflecting solid operational efficiency.75
Positive
Balance Sheet
The company has a high debt-to-equity ratio of 1.72, indicating significant leverage, which poses a potential risk. However, the return on equity (ROE) is at 10.97%, showing decent profitability relative to shareholders' equity. The equity ratio stands at 17.98%, suggesting a moderate level of financial stability.65
Positive
Cash Flow
HENSOLDT AG's free cash flow growth rate is robust at 29.07%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.16, and the free cash flow to net income ratio is 0.35, reflecting a healthy conversion of earnings into cash flow. However, the operating cash flow coverage ratio has slightly decreased, suggesting a need for careful cash flow management.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.34B | 2.24B | 1.85B | 1.71B | 1.47B | 1.21B |
| Gross Profit | 503.00M | 509.00M | 416.00M | 394.00M | 329.80M | 270.80M |
| EBITDA | 356.00M | 379.00M | 293.00M | 267.00M | 253.00M | 156.60M |
| Net Income | 91.00M | 108.00M | 54.00M | 78.00M | 63.00M | -64.50M |
Balance Sheet | ||||||
| Total Assets | 4.65B | 4.70B | 3.84B | 2.98B | 2.95B | 2.95B |
| Cash, Cash Equivalents and Short-Term Investments | 326.00M | 734.00M | 803.00M | 462.00M | 534.00M | 657.80M |
| Total Debt | 1.44B | 1.38B | 854.00M | 789.00M | 943.90M | 1.12B |
| Total Liabilities | 3.80B | 3.81B | 3.02B | 2.36B | 2.54B | 2.60B |
| Stockholders Equity | 836.00M | 872.00M | 808.00M | 604.00M | 399.30M | 333.90M |
Cash Flow | ||||||
| Free Cash Flow | 111.00M | 112.00M | 153.00M | 149.00M | 197.20M | 99.50M |
| Operating Cash Flow | 317.00M | 311.00M | 267.00M | 244.00M | 299.20M | 196.90M |
| Investing Cash Flow | -232.00M | -745.00M | -122.00M | -101.00M | -117.10M | -95.00M |
| Financing Cash Flow | -159.00M | 367.00M | 197.00M | -214.00M | -297.20M | 411.00M |
HENSOLDT AG Technical Analysis
Negative
82.95
Price Trends
97.54
Negative
95.34
Negative
82.77
Positive
Market Momentum
-4.00
Positive
35.74
Neutral
20.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HAG, the sentiment is Negative. The current price of 82.95 is below the 20-day moving average (MA) of 91.55, below the 50-day MA of 97.54, and above the 200-day MA of 82.77, indicating a neutral trend. The MACD of -4.00 indicates Positive momentum. The RSI at 35.74 is Neutral, neither overbought nor oversold. The STOCH value of 20.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:HAG.
HENSOLDT AG Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | €19.86B | 23.31 | 24.74% | 0.61% | 45.24% | ― | |
72 Outperform | €1.09B | 14.09 | 7.17% | 1.93% | -5.27% | -13.70% | |
64 Neutral | €10.62B | 116.70 | 15.96% | 0.59% | 14.89% | 619.09% | |
64 Neutral | €2.03B | 351.58 | 1.49% | 0.56% | 10.80% | -91.79% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | €79.33B | 92.01 | 21.48% | 0.47% | 24.61% | 45.20% | |
56 Neutral | €6.52B | 84.82 | 24.75% | 0.64% | 22.71% | 396.57% |
* Industrials Sector Average
DE:HAG
HENSOLDT AG
82.95
48.07
137.82%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.