- Order intake grows by 91.8% year over year to EUR 665 million with major orders in the Sensors segment
- Revenue on track at EUR 329 million
- Order backlog at record high of EUR 5,879 million (+6.3%)
- Adjusted EBITDA margin increases significantly year over year to 10.2% (+ 1.2 pp)
- Acquisition of ESG successfully completed
- Guidance for the 2024 financial year confirmed in all relevant key performance indicators
Taufkirchen, May 7, 2024 – The HENSOLDT Group ("HENSOLDT") started the 2024 financial year with a positive business development. In the first quarter of 2024, the company almost doubled its order intake to EUR 665 million compared to the same period of the previous year (Q1 2023: EUR 347 million). HENSOLDT particularly benefited from major orders in the Sensors segment, such as the German air defence system for close- and short-range protection (LVS NNbS) ordered in January and additional orders for the TRML-4D radar. As a result, the order backlog reached a record high of EUR 5,879 million in the first three months of 2024 (+6.3% compared to the year end of 2023).
Revenue was slightly below the previous year's level at EUR 329 million (Q1 2023: EUR 338 million). In addition to an exceptionally strong comparative quarter in the previous year, this was due to a decrease of the pass-through business (revenue with a low value-added share). At the same time, HENSOLDT further improved its profitability and increased the adjusted EBITDA by 10.7% year over year to EUR 33 million (Q1 2023: EUR 30 million). With a positive project mix and more efficient cost management, the adjusted EBITDA margin increased from 9.0% to 10.2%.
Adjusted free cash flow improved from EUR -137 million to EUR -81 million year over year, mainly driven by higher cash inflows from customer contracts. In addition, cash flow reflected investments in working capital.
Oliver Dörre took over management responsibility as CEO of the HENSOLDT Group with effect from 1 April 2024. With this step, the company fully focuses on operational excellence and seamlessly continues the successful business performance of recent years. Commenting on the presentation of the financial results, Oliver Dörre, CEO of the HENSOLDT Group, said: “The global security environment has become even more complex and volatile in recent months. This has further intensified the demands on modern security and defence solutions and confirmed the need for our innovative sensor solutions, for example in the field of air defence. If we want to stand up to an aggressor like Russia, we need both when it comes to weapon systems: quality and quantity. Our Operational Excellence program is aimed at both: we are continuously expanding our production capabilities and investing in digital product innovation and innovative solutions. Iran's massive attack on Israel and the horrific images from Ukraine show that air strikes by drones and missiles are part of the spectrum of modern warfare. That is why the European Skyshield Initiative (ESSI) – to which we are contributing our TRML-4D mid-range radar – is so important.”
Christian Ladurner, CFO of the HENSOLDT Group, says: “In the first quarter of 2024, HENSOLDT successfully continued its growth trajectory. With an order backlog at a record high, we are ideally positioned and have very good visibility on our business development. We were able to further increase our profitability in the first three months of 2024. Thereby, we are benefiting from improved operational processes and efficient cost management. Starting in the second quarter, we also expect the first positive effects from the consolidation of the successful ESG acquisition. This will be an important driver for our revenues and order development. We are therefore optimistic for the fiscal year 2024 and confirm our outlook for all relevant key performance indicators.”
Continued strong performance of core business
HENSOLDT's core business in the Sensors segment once again improved significantly year over year with major orders and a strong order intake in the first three months of 2024. Order intake and order backlog increased by 190.5% and 7.5% respectively compared to the previous year. Almost all divisions benefited from the German air defence system for close- and short-range protection (LVS NNbS) ordered by Bundeswehr.
HENSOLDT also benefited from the LVS NNbS project in the Optronics segment and further increased its order backlog (+3.2% compared to the year end 2023).
The increase in the order backlog to EUR 880 million was primarily achieved in the Radar & Naval Solutions and Optronics & Land Solutions divisions.
Acquisition of ESG successfully completed
In the first quarter of 2024, HENSOLDT continued the acquisition process with ESG Elektroniksystem- und Logistik-GmbH and successfully completed it with effect from 2 April 2024. A comprehensive post-merger integration project was launched immediately after the closing and, in addition to the operational integration of ESG into HENSOLDT, will also systematically drive the planned revenue and cost synergies. The acquisition adds strong design and system integration capabilities to HENSOLDT’s product and solutions business and creates a national champion in defence electronics. Positive effects of the acquisition on HENSOLDT's order and revenue development are expected as of beginning of the second quarter.
Positive outlook for 2024 financial year confirmed
HENSOLDT expects a positive business development for the financial year 2024. Due to the continued high visibility of the business development in 2024, HENSOLDT confirms its outlook for all relevant key performance indicators as communicated at the beginning of April 2024. For the first time, the outlook takes into account the acquisition of ESG, which will be included in the consolidated financial statements from the second quarter of 2024 onwards. Due to the continued high demand from the German armed forces special defence fund and the continuing high demand for defence solutions, HENSOLDT expects continued positive business performance for the financial year 2024. In particular, the company expects consolidated revenue of approx. 2.3 billion euros and significantly faster growth in order intake compared to revenue growth. The adjusted EBITDA margin before pass-through business is expected to be between 18% and 19%.
Key financials
€ million | Q1 2023 | Q1 2024 |
Revenue | 338 | 329 |
Adjusted EBITDA | 30 | 33 |
Adjusted EBITDA margin | 9.0% | 10.2% |
Order intake | 347 | 665 |
Order backlog | 5,362 | 5,879 |
Adjusted free cash flow | -137 | -81 |
HENSOLDT’s quarterly press release for the first three months of the 2024 financial year is available to view on the HENSOLDT AG Investor Relations website. The business results for the first half of 2024 will be published on July 26, 2024. The Annual General Meeting of HENSOLDT AG will be held in person at Wappenhalle in Munich on Friday, May 17, 2024.
About HENSOLDT
HENSOLDT is a leading company in the European defence industry with a global reach. Based in Taufkirchen near Munich, the company develops complete sensor solutions for defence and security applications. As a system integrator, HENSOLDT offers platform-independent, networked solutions. Being a technology leader, the company is also driving forward the development of defence electronics and optronics and is continuously expanding its portfolio based on innovative approaches to data fusion, artificial intelligence and cyber security. In 2023, HENSOLDT achieved a turnover of 1.85 billion euros. Following the acquisition of ESG Group, the company employs around 8,000 people. HENSOLDT is listed on the Frankfurt Stock Exchange in the MDAX.
Press contact HENSOLDT
Joachim Schranzhofer
T: +49 (0)89.51518.1823
M: joachim.schranzhofer@hensoldt.net
