HENSOLDT AG accelerates growth and raises targets


  • Sensor solutions provider HENSOLDT is benefiting from the trend towards networked, intelligent defence systems and its successful innovation roadmap
  • Defence electronics segment expected to experience long-term structural growth
  • Order intake, revenue, profitability and cash flow targets upgraded
  • Revenue growth: average annual growth guidance for 2023 raised to 7–10% (previously: “mid-to-high single-digit growth”) and to 10% for 2025 (previously: “mid-single-digit growth”)
  • Adjusted EBITDA margin: unchanged for 2023 at ~19%; for 2025, target EBITDA margin before pass-through revenues raised to >19%
  • Book-to-bill ratio: for 2023 narrowed down to 1.1-1.2x (previously: >1x), with order intake growth expected to significantly outpace revenue growth by 2025 (previously: “faster growth; book-to-bill ratio >1x”)
  • Adjusted free cash flow before interest and taxes: cash conversion of adjusted EBITDA expected to average approx. 70% in 2023 and 70–80% in 2025
  • Dividend as a percentage of adjusted net income: unchanged at 30–40% (up from 20% in 2022)


Taufkirchen, Germany, 14 December 2022 – At its Capital Markets Day in London, HENSOLDT AG (“HENSOLDT”) announced that it has raised its short- and medium-term targets. The company expects to see initial budget increases and orders from the special defence fund (Sondervermögen) in 2023, and therefore predicts accelerated order intake growth and higher core revenue. HENSOLDT then anticipates growth in order intake to significantly outpace revenue growth in the period to 2025.

In light of this, the revenue forecast for 2023 has been substantiated further: HENSOLDT now expects revenue to increase 7–10% (previously: growth in the mid-to-high single-digit range). The company also expects a larger proportion of revenue from higher value-added business. Based on this trend, HENSOLDT anticipates annual revenue growth of 10% in the medium term. The adjusted EBITDA margin forecast for 2023 remains unchanged at ~19%. HENSOLDT then expects an adjusted EBITDA margin before pass-through revenues of >19% by 2025.

The book-to-bill ratio for 2023 has been specified to 1.1–1.2x (previously: >1x). The company expects order intake to significantly outpace revenue growth by 2025 (previously: “faster growth”; book-to-bill ratio >1x). With regard to adjusted free cash flow before interest and taxes, the conversion of adjusted EBITDA is forecast to average approx. 70% in 2023 and 70-80% in 2025. The net debt guidance is also more positive: HENSOLDT expects to reduce its leverage ratio to <1.0x (previously: <1.25x) in the next financial year. In addition, HENSOLDT continues to aim for a dividend payout ratio of 30–40% of adjusted net income, confirming an increase from 20% in 2022 to 30-40%.

Thomas Müller, CEO of HENSOLDT AG: “I am delighted that today’s Capital Markets Day provided us with an opportunity to show our investors once again that we have kept all the promises made during our IPO in 2020. And the signs all point to our continued growth. HENSOLDT is a long-term growth platform with excellent, reliably predictable business prospects. The defence market is booming due to the supercycle in the defence industry, which is being amplified by the current security situation and – in Germany – by the EUR 100 billion special defence fund (Sondervermögen). Notably the defence electronics segment is set to maintain its above-average growth in the coming years. Thanks to our leading-edge products and solutions in this area, we are benefiting from the intensifying trend towards networked systems, even across domain borders. Through our systematic innovation roadmap – particularly in relation to the further digitalisation of our sensor technology, artificial intelligence and the area of data analysis – we offer our customers a superior overview and elevate defence systems to a new level. We are confident that we will be able to double our revenue every five years over the long term.”

Christian Ladurner, CFO of HENSOLDT AG: “We are proud of HENSOLDT’s financial strength and that we are able to set ourselves even more ambitious targets. In view of the structural market growth and the long project cycles in our industry, we consider the conditions to be excellent for HENSOLDT’s sustainable growth. Our revenue development is positive not only in quantitative terms, but also qualitatively, as we are steadily reducing the proportion of lower value-added services. The projected profitability and cash flow trend similarly reflects our highly consistent and disciplined approach to steering HENSOLDT towards a healthy and robust future.”

Growth momentum in the defence industry

The new security situation with multiple complex threats is pushing up defence budgets across the globe. In Germany alone, defence spending is expected to grow by an average of around 7% per year up to 2027. The sector sub-segment relevant to HENSOLDT – the defence electronics market – is forecast to grow even faster, expanding by approximately 8% annually worldwide until 2027. Germany is among the fastest growing markets, climbing by around 9%.

Strong orders over the long term

HENSOLDT already has a very high order backlog, which has more than doubled since 2019. Key projects include the development of the new-generation radar for the Eurofighter, the PEGASUS airborne signals intelligence system and participation in pan-European defence projects such as FCAS and MGCS. Against the backdrop of the European Sky Shield Initiative to create a joint air defence system for European NATO countries, HENSOLDT decided to build 30 TRML-4D radars for the IRIS-T SLM air defence system. With our TRML-4D multifunction radar, HENSOLDT has been supporting the delivery of the IRIS-T SLM air defence system to Ukraine since the end of October. Together with Diehl Defence and Airbus, we have enabled Ukrainian cities to be defended with state-of-the-art technology.

Systematic rollout of ESG strategy

HENSOLDT aims to become the sector benchmark for ESG matters. To achieve this, the group-wide ESG Strategy 2026 – which covers seven core areas – was rolled out in 2021. One of the strategy milestones is for the company to achieve carbon neutrality by 2035. HENSOLDT’s CO2 targets are defined around the framework of the Science Based Targets initiative (SBTi). In line with this, the company’s sites are to be made more sustainable – with, for instance, photovoltaic systems installed at most major German locations and a hydrogen energy system set up at the Kiel site. As far as possible, this project will enable the entire power supply to come from a self-sustaining source and allow up to 40 tonnes of carbon to be saved each year. With regard to diversity, HENSOLDT has set the target of increasing the proportion of women in management positions to 30% by 2026.

The Presentation of the Capital Markets Day in London is available on the HENSOLDT AG Investor Relations website. The preliminary full-year results for 2022 are expected to be published on 23 February 2023.


HENSOLDT is a leading company in the European defence industry with global reach. Based in Taufkirchen near Munich, the company develops complete sensor solutions for defence and security applications. As a technology leader, HENSOLDT drives the development of defence electronics and optronics and is continuously expanding its portfolio based on innovative approaches to data management, robotics and cyber security. With more than 6,400 employees, HENSOLDT achieved a turnover of 1.5 billion euros in 2021. HENSOLDT is listed on the Frankfurt Stock Exchange.

Press contact HENSOLDT

Joachim Schranzhofer
T: +49 (0)89.51518.1823
M: joachim.schranzhofer@hensoldt.net

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