Q3 2025 Hensoldt AG Earnings Call Transcript
Key Points
- Hensoldt AG (HAGHY) has seen a significant increase in order intake, reaching over EUR2 billion, driven by key programs like the Eurofighter and TRML-4D radars.
- The company's revenue performance was strong, increasing to EUR1.5 billion, with core revenue growing by 14%, reflecting the strength of its underlying business.
- Hensoldt AG (HAGHY) has raised its book-to-bill guidance for 2025 from around 1.2 times to a range of 1.6 to 1.9 times, indicating strong future order expectations.
- The Optronics segment showed strong performance with a book-to-bill ratio of 1.4 times and revenue growth of 27% in the first nine months.
- The company is investing EUR80 million in a new production site to significantly increase production capacity for air defense radars, ensuring long-term growth and delivery capability.
- Despite strong order intake, the cash guidance remains unchanged, indicating potential challenges in cash conversion or working capital management.
- The revenue growth in Q4 is expected to be softer than usual, partly due to the logistical center's impact, which may affect overall annual growth figures.
- The Sensors segment experienced a slower start in radar production during the first half of the year, which may have impacted overall segment performance.
- The adjusted free cash flow was negative at minus EUR119 million for the first nine months, highlighting ongoing investments in working capital.
- The logistical ramp-up has had a dilutive effect on the Sensors segment's margins, although this impact is expected to diminish over time.
Good afternoon, everybody, and welcome to Hensoldt's 9M 2025 results call. Thank you all for joining us today. I'm Veronika Endres, Head of Investor Relations at Hensoldt. And with me today is our CFO, Christian Ladurner. Christian will guide you through this presentation today, which will be followed by Q&A. And with that, over to you, Christian.
Thank you very much, Veronika, and a very warm welcome to all of our investors and analysts following our company. It's great to have you with us today.
I'd like to begin with a quick update of this time line, which you may remember from our recent analyst calls. Since then, our assumptions have further materialized. Right after the adoption of Germany's 2025 defense budget in September, the parliamentary sessions for procurement approvals gained strong momentum.
By the end of 2025, a total of more than a high double-digit number of so-called EUR25
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