HENSOLDT AG (DE:HAG)
XETRA:HAG
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HENSOLDT AG
(XETRA:HAG)
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Rating:59Neutral
Price Target:
€73.00
▲(5.04% Upside)
Action:ReiteratedDate:03/15/26
The score is anchored by solid fundamentals (growth and improved 2025 cash generation) and a constructive earnings-call outlook (higher book-to-bill and record backlog). Offsetting these positives are balance-sheet leverage risk, a neutral-to-weak technical setup, and a very expensive valuation with low yield.
Positive Factors
Improving cash generation
Hensoldt's recovery in cash generation is a durable strength: higher operating cash flow and positive free cash flow in 2025 enhance financial flexibility to fund capex, backlog execution, and working-capital seasonality, reducing dependency on external funding over the medium term.
Negative Factors
Elevated leverage
Rising leverage to ~1.65x increases financial risk and sensitivity to interest rates or margin shocks; with sizable absolute debt, Hensoldt has less buffer for funding large ramps or unexpected program costs without pressuring liquidity or requiring higher-cost financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving cash generation
Hensoldt's recovery in cash generation is a durable strength: higher operating cash flow and positive free cash flow in 2025 enhance financial flexibility to fund capex, backlog execution, and working-capital seasonality, reducing dependency on external funding over the medium term.
Read all positive factors
HENSOLDT AG (HAG) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€8.03B
Dividend Yield0.68%
Average Volume (3M)536.28K
Price to Earnings (P/E)95.3
Beta (1Y)1.31
Revenue Growth14.89%
EPS Growth619.09%
CountryDE
Employees8,986
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.03
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
€90.50Price Target Upside30.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)1.81
Revenue Forecast (FY)€2.76B
HENSOLDT AG Business Overview & Revenue Model
Company Description
Hensoldt 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 s...
How the Company Makes Money
HENSOLDT makes money mainly by selling defense and security sensor systems and by providing long-term services around those systems. A significant portion of revenue comes from contract-based project business: customers (typically national ministr...
HENSOLDT AG Earnings Call Summary
Earnings Call Date:Nov 07, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 06, 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.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%.
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.
Read all updates
Q3-2025 Updates
Positive
Negative
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%.
Read all positive updates
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
Income Statement
72
Positive
Balance Sheet
54
Neutral
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.46B | 2.24B | 1.85B | 1.71B | 1.47B |
| Gross Profit | 525.00M | 509.00M | 416.00M | 394.00M | 329.80M |
| EBITDA | 385.00M | 379.00M | 293.00M | 267.00M | 253.00M |
| Net Income | 89.00M | 108.00M | 54.00M | 78.00M | 63.00M |
Balance Sheet | |||||
| Total Assets | 5.43B | 4.70B | 3.84B | 2.98B | 2.95B |
| Cash, Cash Equivalents and Short-Term Investments | 933.00M | 734.00M | 803.00M | 462.00M | 534.00M |
| Total Debt | 1.63B | 1.38B | 854.00M | 789.00M | 943.90M |
| Total Liabilities | 4.43B | 3.81B | 3.02B | 2.36B | 2.54B |
| Stockholders Equity | 991.00M | 872.00M | 808.00M | 604.00M | 399.30M |
Cash Flow | |||||
| Free Cash Flow | 247.00M | 112.00M | 153.00M | 149.00M | 197.20M |
| Operating Cash Flow | 453.00M | 311.00M | 267.00M | 244.00M | 299.20M |
| Investing Cash Flow | -236.00M | -745.00M | -122.00M | -101.00M | -117.10M |
| Financing Cash Flow | -20.00M | 367.00M | 197.00M | -214.00M | -297.20M |
HENSOLDT AG Technical Analysis
Negative
69.50
Price Trends
80.25
Negative
79.14
Negative
87.54
Negative
Market Momentum
-1.78
Positive
37.15
Neutral
10.48
Positive
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 69.5 is below the 20-day moving average (MA) of 76.60, below the 50-day MA of 80.25, and below the 200-day MA of 87.54, indicating a bearish trend. The MACD of -1.78 indicates Positive momentum. The RSI at 37.15 is Neutral, neither overbought nor oversold. The STOCH value of 10.48 is Positive, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | €1.64B | 15.56 | 7.17% | 1.97% | -5.27% | -13.70% | |
67 Neutral | €16.68B | 18.80 | 29.86% | 0.62% | 45.24% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | €4.95B | 45.14 | 1.53% | 0.51% | 10.80% | -91.79% | |
62 Neutral | €66.68B | 101.47 | 19.04% | 0.53% | 24.61% | 45.20% | |
59 Neutral | €8.03B | 95.25 | 14.37% | 0.68% | 14.89% | 619.09% | |
55 Neutral | €4.79B | 53.43 | 23.55% | 0.80% | 22.71% | 396.57% |
* 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.