Hensoldt AG Reports Strong Nine-Month Results, Raises Guidance

Hensoldt AG is benefiting from increased defense spending in Europe, as evidenced by a 33% rise in adjusted EBITDA to €281 million for the first nine months of 2026, up from €211 million in the same period last year. This growth is underpinned by a record order backlog of €10.367 billion, a 46.1% increase year-over-year, and a 76.7% surge in order intake to €3.564 billion.

The company’s revenue also saw substantial growth, increasing by 21.3% to €1.863 billion. This was largely fueled by the core business, excluding pass-through revenue, which grew by 17.7%, particularly in air defense. The improved financial performance has prompted Hensoldt to raise its full-year guidance, now projecting revenue of around €2.8 billion, up from the previously expected €2.75 billion. The anticipated adjusted EBITDA margin has also been revised upwards to approximately 19%, from a previous range of 18.5% to 19.0%.

The positive momentum is attributed to substantial investments by Germany and other European countries in their defense capabilities, driving demand for Hensoldt’s sensor, optronics, and software-based solutions. The book-to-bill ratio improved to 1.9x, indicating strong order flow relative to revenue. While adjusted free cash flow remains negative at -€104 million, it improved from -€119 million in the prior-year period, benefiting from higher advance payments.

These results signal a strengthening position for Hensoldt within the defense sector, driven by geopolitical factors and increased investment in defense technologies. The company’s ability to convert its growing order backlog into revenue and improved profitability demonstrates its capacity to capitalize on the current market environment, with the adjusted EBITDA margin reaching 15.1%, up from 13.7% in the same period last year.