Hensoldt AG

H1 2026 order intake doubled year-over-year to more than EUR 2.8 billion, lifting book-to-bill to 2.4x. Revenue increased 24% to more than EUR 1.1 billion, while core revenue excluding pass-throughs rose 18%. Adjusted EBITDA increased 29% to EUR 137 million, with margin up 0.5 percentage points to 11.8%; adjusted EBIT margin expanded 0.9 percentage points to 6.0%. Order backlog grew 46% to over EUR 10 billion. For the full year, management reaffirmed book-to-bill of 1.5x-2x, revenue of approximately EUR 2.7 billion, adjusted EBITDA margin of 18.5%-19%, cash conversion of approximately 50%, leverage around 1.5x, and dividend payout of 30%-40% of adjusted net income. Management also said pass-through revenue should be around EUR 170 million for the year, with about EUR 150 million expected in Sensors; they expect approximately EUR 150 million of full-year contribution from Mk1 pass-through revenues. The F126 contract was said to be just over EUR 200 million, with more than one-third already recognized as revenue and around EUR 130 million leaving backlog.

Oliver Dorre framed the quarter around a stronger geopolitical and program backdrop, arguing that NATO and European defense priorities are translating directly into HENSOLDT’s portfolio. He emphasized sensors, software-defined defense, multi-domain integration, and industrial capacity expansion, saying the company is positioned across both conventional and next-generation capabilities. His tone was upbeat and strategic, while also stressing that HENSOLDT is not dependent on any single program, especially after the F126 termination.

Christian Ladurner highlighted a record H1 and said the business is converting demand into financial results. He cited order intake above EUR 2.8 billion, revenue above EUR 1.1 billion, adjusted EBITDA of EUR 137 million, and backlog above EUR 10 billion, while noting that adjusted free cash flow improved 25% year-over-year to minus EUR 136 million due to seasonal working-capital and infrastructure investments supported by advance payments. He reaffirmed the full-year targets and said margin and cash conversion should improve as the year progresses, with pass-through revenues expected to moderate in H2.

Analysts focused on the apparent second-half slowdown in revenue and margins, the impact of lower pass-throughs, and whether guidance was conservative. Management said H2 will face lower pass-through revenue, a few H1 spillovers will not repeat, and costs such as hiring, training, production-line expansion, and R&D weigh on H1 margins before revenues ramp later in the year. On orders, management pointed to Eurofighter, a land EW program, CLM 30 air defense, PEGASUS, and Optronics programs as key H2 drivers. Questions on naval exposure after F126 and the MEKO A-200 were met with reassurance that the radar-family strategy remains intact and that future batches and commonality requirements still create opportunity; on space, management said they are pursuing ISR and sensor opportunities with partners, but details remain open and could involve organic growth and M&A.