Hensoldt Confirms FY24 Outlook, Raises Mid-term Adj. EBITDA Margin View

HENSOLDT

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(RTTNews) - Hensoldt AG (HAGHY), a provider of sensors and security solutions, on Thursday confirmed its outlook for fiscal 2024, and raised parts of its medium-term target.

At its Capital Markets Day in London, the company also presented its new growth strategy, 'North Star' strategy, for the first time, which will ensure continuous and robust growth.

For fiscal 2024, the company continues to expect a moderate increase in adjusted EBITDA and revenue of about 2.3 billion euros with high order backlog.

Adjusted EBITDA margin before pass through business is expected to be around 18 percent to 19 percent in 2024.

In the first nine months of fiscal year 2024, the order backlog amounted to 6.5 billion euros, which is equivalent to a very high level of revenue visibility.

In the medium term, adjusted EBITDA margin before pass through business outlook has been raised to around 20 percent.

In the mid-term, HENSOLDT expects order intake to grow significantly faster than revenues.

For 2025, the company is targeting a low double-digit percentage revenue growth rate, with a mid-term annual average growth rate of 10 percent.

For 2025, 86 percent of the forecast revenues are already covered by the existing order backlog, including confirmed orders as well as short-cycle and aftermarket business.

Amid the tense security situation in the world, HENSOLDT expects a strong growth in defence spending in the future as well. The demand for defence electronics is likely to increase at an above-average rate in the medium term. With a market growth of around 10 percent in Germany and around 7 percent in Europe and the international markets, there is great potential for orders, the firm noted.

The company further said its goal is to achieve revenues of around 5 billion euros by 2030, primarily through organic growth.

Further, HENSOLDT continues to target a dividend payout ratio of 30-40 percent of adjusted net income, both for 2024 and in the medium term.

The preliminary results for the full year 2024 are expected to be published on February 27.