HENSOLDT AG (1HENS) AI Stock Analysis

HENSOLDT AG

(Milan:1HENS)

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Action:N/A

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Positive Factors

Record BacklogThe record backlog provides substantial multi-year revenue visibility and supports production planning, investment decisions, and customer relationships. Its extension into the next decade indicates that demand is not limited to a single budget cycle, strengthening the foundation for sustained growth.

Negative Factors

Rising LeverageHigher leverage reduces financial flexibility and makes HENSOLDT more sensitive to earnings or cash-flow volatility. It can constrain investment and capital allocation choices if program timing changes, while increasing the importance of meeting management's targeted reduction toward roughly 1.5 times.

HENSOLDT AG (1HENS) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 9.89B
Dividend Yield: 0.62%
Average Volume (3M): 227
Price to Earnings (P/E): 82.4
Beta (1Y): 0.83
Revenue Growth: 14.69%
EPS Growth: 31.87%
Country: Italy
Employees: 9,679
Sector: Industrials
Sector Strength: 63
Industry: Aerospace & Defense

HENSOLDT AG Business Overview & Revenue Model

Company Description

Hensoldt AG, along with its subsidiaries, delivers sophisticated electronic sensor solutions for defense and security sectors worldwide. Its extensive radar portfolio includes systems for air surveillance, airborne platforms, ground-based operations,...

HENSOLDT AG Earnings Call Summary

Earnings Call Date:Jul 30, 2026(Q2-2026)|% Change Since:6.22%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentPositive

The call emphasized robust commercial momentum and execution: record order intake, a record EUR 10+ billion backlog, double‑digit revenue growth, improved profitability and a clear industrial ramp-up. Management reaffirmed full-year guidance and presented ambitious midterm targets, supported by strategic program wins and partnerships. Near-term challenges include negative free cash flow (though improved), temporary margin dilution in Sensors due to pass-through and R&D, program timing/export uncertainties (PEGASUS, luWES), and competitive/tender risk in some naval opportunities. Overall the positives — scaleable production ramp, strong bookings, margin improvement and strategic positioning — outweigh the temporary operational and timing headwinds.

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 driven by major contracts (armored vehicle programs, Eurofighter Mk1, Knifefish, TRML-4D).

Negative Updates

F126 Frigate Termination and Backlog Adjustment

F126 termination remains a headline item: contract value just over EUR 200 million with >1/3 already recognized as revenue; remaining ~EUR 130 million will be removed from backlog — described as not material to guidance but a visible program-level setback.

Company Guidance

Management reaffirmed FY2026 guidance: group revenue of approximately €2.7bn, a book‑to‑bill target of 1.5x–2.0x, and an adjusted EBITDA margin of 18.5%–19.0%, with cash conversion around 50% (update from 1 June); they also target net leverage ≈1.5x and a dividend payout of 30%–40% of adjusted net income. H1 order intake exceeded €2.8bn and backlog is >€10bn, underpinning the outlook; management expects full‑year pass‑through/Mk1 contribution of ~€150m (management also referenced ~€170m total pass‑through with roughly €50–60m remaining in H2). For the mid term they expect order intake to outpace revenue, average annual organic revenue growth of ~15%–20%, margin expansion of ~50bps per year and cash conversion normalizing to ~50%–60%.

HENSOLDT AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

IT:1HENS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE:MTX	79Outperform	EUR 17.74B	18.81	20.01%	1.09%	12.33%	10.49%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DE:RHM	62Neutral	EUR 48.41B	66.39	14.33%	1.11%	-2.29%	-17.37%
DE:R3NK	61Neutral	EUR 3.69B	37.67	20.97%	1.57%	10.63%	28.99%
DE:OHB	59Neutral	EUR 4.65B	98.68	7.83%	0.53%	18.38%	642.89%
DE:MBQ	48Neutral	EUR 9.24M	23.40	2.76%	―	-11.34%	―

* Industrials Sector Average

Performance Comparison

IT:1HENS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:1HENS	HENSOLDT AG	88.14	-5.62	-6.00%
DE:MTX	MTU Aero Engines	329.30	-39.67	-10.75%
DE:OHB	OHB SE	224.00	116.93	109.20%
DE:RHM	Rheinmetall AG	1037.60	-718.35	-40.91%
DE:MBQ	MOBOTIX AG	0.70	0.01	1.74%
DE:R3NK	RENK Group AG	36.91	-28.57	-43.63%

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.

HENSOLDT AG AI Stock Analysis