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HENSOLDT AG
(XETRA:HAG)
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Rating:71Outperform
Price Target:
€95.00
▲(19.05% Upside)
Action:Upgraded
Date:08/04/26
The score is driven primarily by solid financial performance (strong cash generation and growth, tempered by higher leverage and thin net margins) and supportive technical momentum (price above key moving averages with positive MACD). This is partially offset by expensive valuation (very high P/E and low yield), while the latest earnings call was broadly constructive with reaffirmed guidance and record backlog despite near-term cash flow and execution/timing risks.
Positive Factors
Strong cash generation
Consistent, material free cash flow (TTM FCF €310m, operating cash flow €570m) that historically exceeds net income (~2.6x) gives durable internal funding for debt service, capex and R&D. This strengthens financial flexibility and supports growth investments over the medium term.
Negative Factors
Rising leverage and balance-sheet sensitivity
Material increase in leverage (TTM debt €1.69bn, debt/equity ~1.69x) reduces financial flexibility and raises sensitivity to earnings or cash-flow volatility. Higher leverage constrains downside resilience, increases interest exposure and makes achieving targeted net leverage (~1.5x) a key execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, material free cash flow (TTM FCF €310m, operating cash flow €570m) that historically exceeds net income (~2.6x) gives durable internal funding for debt service, capex and R&D. This strengthens financial flexibility and supports growth investments over the medium term.
Read all positive factors
HENSOLDT AG (HAG) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€9.21B
Dividend Yield0.69%
Average Volume (3M)536.28K
Price to Earnings (P/E)76.7
Beta (1Y)1.53
Revenue Growth14.69%
EPS Growth31.87%
CountryDE
Employees9,679
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.04
Shares Outstanding115,500,000
10 Day Avg. Volume473,044
30 Day Avg. Volume536,278
Financial Highlights & Ratios
PEG Ratio-5.54
Price to Book (P/B)8.55
Price to Sales (P/S)3.45
P/FCF Ratio34.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€94.13Price Target Upside17.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)1.82
Revenue Forecast (FY)€2.78B
HENSOLDT AG Business Overview & Revenue Model
Company Description
Hensoldt AG, along with its subsidiaries, delivers sophisticated electronic sensor solutions for defense and security sectors worldwide. Its extensive radar portfolio includes systems for air surveillance, airborne platforms, ground-based operatio...
How the Company Makes Money
HENSOLDT makes money primarily by selling defense and security sensor products and integrated system solutions, supplemented by recurring services over the lifecycle of those systems. Key revenue streams typically include: (1) Product and system s...
HENSOLDT AG Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized robust commercial momentum and execution: record order intake, a record EUR 10+ billion backlog, double‑digit revenue growth, improved profitability and a clear industrial ramp-up. Management reaffirmed full-year guidance and presented ambitious midterm targets, supported by strategic program wins and partnerships. Near-term challenges include negative free cash flow (though improved), temporary margin dilution in Sensors due to pass-through and R&D, program timing/export uncertainties (PEGASUS, luWES), and competitive/tender risk in some naval opportunities. Overall the positives — scaleable production ramp, strong bookings, margin improvement and strategic positioning — outweigh the temporary operational and timing headwinds.Positive Updates
Record Order Intake and Strong Book-to-Bill
Order intake doubled year-over-year to more than EUR 2.8 billion in H1 2026, lifting the book-to-bill ratio to 2.4x and driven by major contracts (armored vehicle programs, Eurofighter Mk1, Knifefish, TRML-4D).
Negative Updates
F126 Frigate Termination and Backlog Adjustment
F126 termination remains a headline item: contract value just over EUR 200 million with >1/3 already recognized as revenue; remaining ~EUR 130 million will be removed from backlog — described as not material to guidance but a visible program-level setback.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Order Intake and Strong Book-to-Bill
Order intake doubled year-over-year to more than EUR 2.8 billion in H1 2026, lifting the book-to-bill ratio to 2.4x and driven by major contracts (armored vehicle programs, Eurofighter Mk1, Knifefish, TRML-4D).
Read all positive updates
Company Guidance
Management reaffirmed FY2026 guidance: group revenue of approximately €2.7bn, a book‑to‑bill target of 1.5x–2.0x, and an adjusted EBITDA margin of 18.5%–19.0%, with cash conversion around 50% (update from 1 June); they also target net leverage ≈1.5x and a dividend payout of 30%–40% of adjusted net income. H1 order intake exceeded €2.8bn and backlog is >€10bn, underpinning the outlook; management expects full‑year pass‑through/Mk1 contribution of ~€150m (management also referenced ~€170m total pass‑through with roughly €50–60m remaining in H2). For the mid term they expect order intake to outpace revenue, average annual organic revenue growth of ~15%–20%, margin expansion of ~50bps per year and cash conversion normalizing to ~50%–60%.HENSOLDT AG Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.68B | 2.46B | 2.24B | 1.85B | 1.71B | 1.47B |
| Gross Profit | 559.00M | 525.00M | 509.00M | 416.00M | 394.00M | 329.80M |
| EBITDA | 435.00M | 410.00M | 379.00M | 293.00M | 267.00M | 253.00M |
| Net Income | 120.00M | 89.00M | 108.00M | 54.00M | 78.00M | 63.00M |
Balance Sheet | ||||||
| Total Assets | 5.70B | 5.43B | 4.70B | 3.84B | 2.98B | 2.95B |
| Cash, Cash Equivalents and Short-Term Investments | 589.00M | 933.00M | 734.00M | 803.00M | 462.00M | 534.00M |
| Total Debt | 1.69B | 1.63B | 1.38B | 854.00M | 789.00M | 943.90M |
| Total Liabilities | 4.72B | 4.43B | 3.81B | 3.02B | 2.36B | 2.54B |
| Stockholders Equity | 968.00M | 991.00M | 872.00M | 808.00M | 604.00M | 399.30M |
Cash Flow | ||||||
| Free Cash Flow | 310.00M | 247.00M | 112.00M | 153.00M | 149.00M | 197.20M |
| Operating Cash Flow | 570.00M | 453.00M | 311.00M | 267.00M | 244.00M | 299.20M |
| Investing Cash Flow | -356.00M | -236.00M | -745.00M | -122.00M | -101.00M | -117.10M |
| Financing Cash Flow | 54.00M | -20.00M | 367.00M | 197.00M | -214.00M | -297.20M |
HENSOLDT AG Technical Analysis
Positive
79.80
Price Trends
76.96
Positive
77.60
Positive
78.80
Positive
Market Momentum
3.66
Negative
69.29
Neutral
82.38
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HAG, the sentiment is Positive. The current price of 79.8 is below the 20-day moving average (MA) of 80.76, above the 50-day MA of 76.96, and above the 200-day MA of 78.80, indicating a bullish trend. The MACD of 3.66 indicates Negative momentum. The RSI at 69.29 is Neutral, neither overbought nor oversold. The STOCH value of 82.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | €19.49B | 20.66 | 20.01% | 1.05% | 12.33% | 10.49% | |
71 Outperform | €9.21B | 76.74 | 10.96% | 0.69% | 14.69% | 31.87% | |
64 Neutral | €4.78B | 41.97 | 25.11% | 1.28% | 17.16% | 102.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | €53.19B | 71.83 | 14.85% | 1.11% | -8.66% | -8.96% | |
48 Neutral | €4.75B | 79.27 | 12.99% | 0.49% | 22.46% | 1398400.00% | |
48 Neutral | €15.07M | 38.17 | 2.76% | ― | -11.34% | ― |
* Industrials Sector Average
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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.