Hensoldt

DE000HAG0005

HAG

HAG

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$HAG (+2,36 %)
Hensoldt AG quarterly results from Friday:

Short presentation:

HENSOLDT is a pioneer of technology and innovation in defense and security electronics. The company, based in Taufkirchen near Munich, is a German champion with strategic leadership positions in the field of sensor solutions for defense and security applications.

Among other things, the company develops and produces radar systems for the "Eurofighter" and air defense as well as protection systems for "Leopard" and "Puma" tanks and markets certified avionics systems that work together with a variety of third-party avionics and sensor systems. The high-end products are in use worldwide and are characterized by their flexibility and modular concept.

About the earnings:

Hensoldt order book thicker than ever - forecast confirmed

In view of the growing European defense budgets, orders are piling up at the defense electronics group Hensoldt. In the first six months, orders totaling 1.36 (previous year: 1.07)

billion euros, 27 percent more than a year earlier, the company announced on Friday in Taufkirchen near Munich. These included, in particular, the German Armed Forces order for a new air defense system and the order for additional TRML radars for Ukraine's air defense. This increased the order backlog by almost 900 million to a record 6.55 billion euros. Hensoldt's consolidated turnover rose by 17% to EUR 849 million in the first six months of 2024, to which the acquired military service provider ESG contributed EUR 82 million.

The adjusted operating result (EBITDA) improved by 26 percent to 103 million euros. The development confirms "that our strategy is taking effect and that we have set the right course, especially in operational terms," said the new CEO Oliver Dörre. For the year as a whole, Hensoldt continues to expect turnover of around 2.3 billion euros and an adjusted EBITDA margin of 18 to 19 percent.

At the bottom line, however, Hensoldt still posted a loss of 16 million euros, the same as in the same period last year, due to a deterioration in the financial result. The management confirmed the annual forecast and specified the sales outlook at around 1.85 billion euros.

EPS: 0.113 expected: 0.048

Turnover: 520M expected: 517.28M

Dividend yield: 1.03

The company has increased its dividend for 4 consecutive years.

Source:

reuters.com, tagesschau.de & investing.com

$HAG (+2,36 %)

In the first quarter, the armaments group HENSOLDT recorded an order intake almost twice as strong as in the same period of the previous year.

Operating profit increased by more than 10 percent despite lower sales. The MDAX and TecDAX-listed group from Taufkirchen near Munich confirmed its forecast for the year as a whole, which was specified at the beginning of April following the completion of the takeover of ESG Elektroniksystem- und Logistik GmbH.

"With a record order backlog, we are in an excellent position and have very good visibility on business development," said CFO Christian Ladurner according to the press release. We were able to further increase our profitability in the first three months of 2024. We are benefiting from improved operational processes and efficient cost management. We also expect the consolidation of the successful acquisition of ESG, which is an important driver of our sales and order development, to have a positive impact for the first time from the second quarter onwards."

$HAG (+2,36 %) The acquisition of the manufacturer-independent system integrator and technology and innovation partner for defense and public safety is expected to generate annual cost synergies of EUR 19 million in addition to higher sales.

In the three months to the end of March, the Group's incoming orders rose by 91.8% to EUR 665 million, according to the press release. The Group benefited in particular from major orders in the Sensors segment, such as the order for a German air defense system received in January as a partner of Rheinmetall, as well as further orders for the TRML-4D medium-range radar. The order backlog rose by 6.3% compared to the end of 2023 to a new record high of around EUR 5.88 billion.

While revenue fell from EUR 338 million in the same quarter of the previous year to EUR 329 million, HENSOLDT further improved its profitability and increased adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from EUR 30 million to EUR 33 million. Thanks to a positive project mix and more efficient cost management, the adjusted EBITDA margin rose from 9.0 to 10.2 percent.

The adjusted free cash flow improved from minus 137 million to minus 81 million euros compared to the same period last year. This was mainly driven by higher cash inflows from customer contracts, the Group announced. In addition, the cash flow reflects investments in working capital.

For the 2024 financial year, HENSOLDT, including ESG, expects consolidated revenue of EUR 2.3 billion, compared to EUR 1.85 billion in the previous year, and significantly faster growth in order intake compared to consolidated revenue. HENSOLDT had previously forecast an organic increase in revenue to EUR 2 billion. The adjusted EBITDA margin before low value-added business volume is expected to be 18 to 19 percent including ESG. In 2023, the corresponding margin reached 19.9%, while the forecast for organic growth was 19 to 20%.

Thanks to @Hannes_SK who showed me the opportunities of small caps through his contributions.

You always learn something new on the stock market or through the community.

$DRO (+6,84 %) was a chance find in December, as I was looking for a counterweight to $HAG (+2,36 %) and the market for anti-drone technology is very limited.

As a div-growth investor, I am not used to such price gains 🥹

For all those who are asking in panic why Rheinmetall $RHM (+2,34 %) , Renk $n/a (+1,67 %) , Hensoldt $HAG (+2,36 %) etc. are falling 📉🪨 😂

Source https://www.berliner-zeitung.de/politik-gesellschaft/geopolitik/ukraine-krieg-china-entwickelt-sich-zum-ernst-zu-nehmenden-vermittler-zwischen-moskau-und-kiew-li.2203885