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HENSOLDT AG Unsponsored ADR
(OTC:HAGHY)
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Rating:68Neutral
Price Target:
$11.00
▲(14.46% Upside)
Action:Reiterated
Date:08/06/26
The score is primarily supported by solid operating performance and strong absolute cash generation, plus constructive price momentum. It is held back by elevated and rising leverage and a very high P/E with low dividend yield, while the earnings call was net positive (record backlog/order intake and reaffirmed targets) but flagged near-term cash flow and execution timing risks.
Positive Factors
Strong cash generation
Consistently positive TTM operating cash flow (~€551M) and free cash flow (~€291M) provide durable internal funding for reinvestment and debt servicing. For a defense systems supplier with milestone billing, strong absolute cash generation supports program delivery, capacity expansion and multi-year contracts.
Negative Factors
Elevated leverage
High and rising debt-to-equity (~1.75) reduces financial flexibility and heightens sensitivity to earnings volatility and interest-rate moves. In a capital-intensive defense build-up phase, elevated leverage increases refinancing risk and limits ability to absorb program timing setbacks over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistently positive TTM operating cash flow (~€551M) and free cash flow (~€291M) provide durable internal funding for reinvestment and debt servicing. For a defense systems supplier with milestone billing, strong absolute cash generation supports program delivery, capacity expansion and multi-year contracts.
Read all positive factors
HENSOLDT AG Unsponsored ADR (HAGHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.35B
Dividend Yield0.58%
Average Volume (3M)1.96K
Price to Earnings (P/E)92.4
Beta (1Y)0.79
Revenue Growth22.98%
EPS Growth45.49%
CountryUS
Employees9,362
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.27
Shares Outstanding1,155,000,000
10 Day Avg. Volume0
30 Day Avg. Volume1,958
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)3.43
Price to Sales (P/S)1.39
P/FCF Ratio14.34
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
HENSOLDT AG Unsponsored ADR Business Overview & Revenue Model
Company Description
Hensoldt AG operates globally as a key provider of sophisticated electronic sensor technology for defense and security sectors. Its diverse product lineup features an array of radar systems for aerial, ground, naval, and space surveillance, alongs...
How the Company Makes Money
HENSOLDT makes money primarily by selling high-value sensor and mission-system products and by providing services across the lifecycle of those systems. Key revenue streams include: (1) Product and system sales: Revenue from the development and de...
HENSOLDT AG Unsponsored ADR 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 conveyed strong commercial and operational momentum: record order intake, backlog and double‑digit revenue growth, improving profitability and tangible industrial ramp‑up. Strategic positioning was reinforced by program wins, partnerships and political endorsement. Near‑term headwinds include negative free cash flow due to investment and working capital, temporary margin dilution in Sensors from pass‑through and R&D, and cautious H2 phasing with some program timing uncertainty (exports, FREYJA, luWES). On balance the positives — scaleable revenue pipeline, backlog, margin expansion and capacity build — outweigh the short‑term cautions.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 underlining strong demand and multi‑year program visibility.
Negative Updates
Negative Free Cash Flow and Working Capital Investment
Adjusted free cash flow remained negative at minus EUR 136 million despite a 25% year‑on‑year improvement, reflecting seasonal working capital and investment in capacity expansion.
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 underlining strong demand and multi‑year program visibility.
Read all positive updates
Company Guidance
HENSOLDT reaffirmed guidance across all key KPIs: full‑year revenue around EUR 2.7 billion, a book‑to‑bill target of 1.5x–2x, and an adjusted EBITDA margin guidance of 18.5%–19%; cash conversion was updated to approximately 50% (with mid‑term normalization to 50%–60%), target leverage roughly 1.5x and a dividend policy of 30%–40% of adjusted net income. Management reiterated that order intake should continue to outpace revenue (mid‑term organic revenue growth of ~15%–20% p.a.), margins are expected to expand ~50 basis points per year, and noted pass‑through revenues (Mk1/other milestones) of roughly EUR 150–170 million for the full year (with only ~EUR 50–60 million remaining in H2). These targets build on H1 results—order intake >EUR 2.8 billion (book‑to‑bill 2.4x), revenue >EUR 1.1 billion (up 24%), adjusted EBITDA EUR 137 million (11.8% margin), adjusted free cash flow of –EUR 136 million (improved 25% YoY) and a record backlog >EUR 10 billion.HENSOLDT AG Unsponsored ADR Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
56
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.68B | 2.45B | 2.24B | 1.85B | 1.71B | 1.47B |
| Gross Profit | 558.67M | 504.28M | 509.00M | 416.00M | 394.00M | 329.80M |
| EBITDA | 440.49M | 393.82M | 379.00M | 293.00M | 267.00M | 253.00M |
| Net Income | 119.02M | 85.49M | 108.00M | 54.00M | 78.00M | 63.00M |
Balance Sheet | ||||||
| Total Assets | 5.70B | 5.42B | 4.70B | 3.84B | 2.98B | 2.95B |
| Cash, Cash Equivalents and Short-Term Investments | 588.76M | 932.60M | 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 | 4.42B | 3.81B | 3.02B | 2.36B | 2.54B |
| Stockholders Equity | 967.60M | 990.58M | 872.00M | 808.00M | 604.00M | 399.30M |
Cash Flow | ||||||
| Free Cash Flow | 291.31M | 237.25M | 112.00M | 153.00M | 149.00M | 197.20M |
| Operating Cash Flow | 551.01M | 435.12M | 311.00M | 267.00M | 244.00M | 299.20M |
| Investing Cash Flow | -358.26M | -226.69M | -745.00M | -122.00M | -101.00M | -117.10M |
| Financing Cash Flow | 41.25M | -19.21M | 367.00M | 197.00M | -214.00M | -297.20M |
HENSOLDT AG Unsponsored ADR Technical Analysis
Positive
9.61
Price Trends
9.00
Positive
9.09
Positive
9.22
Positive
Market Momentum
0.55
Negative
75.16
Negative
100.03
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAGHY, the sentiment is Positive. The current price of 9.61 is below the 20-day moving average (MA) of 9.81, above the 50-day MA of 9.00, and above the 200-day MA of 9.22, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 75.16 is Negative, neither overbought nor oversold. The STOCH value of 100.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HAGHY.
HENSOLDT AG Unsponsored ADR Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $11.94B | 37.63 | 11.76% | 0.75% | 10.46% | 28.28% | |
69 Neutral | $15.14B | 16.79 | 11.93% | 0.08% | 8.80% | 19.82% | |
68 Neutral | $12.35B | 92.45 | 12.70% | 0.67% | 22.98% | 45.49% | |
63 Neutral | $15.61B | 44.64 | 27.92% | 0.60% | 22.70% | 20.60% | |
57 Neutral | $11.79B | 373.51 | 1.14% | ― | 25.50% | 86.96% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | $9.59B | -30.22 | -6.05% | ― | 140.89% | -448.13% |
* General Sector Average
HAGHY
HENSOLDT AG Unsponsored ADR
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1.09
10.86%
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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.