Decision on the Matter Pending Commission's Deliberation

Hensoldt's Largest Order Boom Yet, Despite Profit Dip

Decision on the Matter Pending Commission's Deliberation

Got some good news and bad news from Hensoldt, the radar specialist in defense electronics. The good? Orders are soaring, a whopping 5% increase from last year, reaching a staggering €701 million! What caused this jump? None other than the Eurofighter fighter jet's systems. The order backlog is at an all-time high of around 6.9 billion euros, thanks to these badass systems.

The revenue rose by a fifth to €395 million, though shareholders probably didn't feel the wealth. Why? The net loss that hit their wallets doubled from 14 to 30 million euros. Despite making a profit of 30 million euros before interest, taxes, depreciation, and amortization (adjusted EBITDA), this was still 9% less than the previous year.

But there's a silver lining – ol' Oliver Dörr, Hensoldt's CEO, is predicting a revenue of €2.5 to €2.6 billion this very year! That's alongside an adjusted EBITDA margin of around 18%. So cheer up, shareholders! In case you're wondering why Q1's margin was only 7.6%, compared to 10.2% a year ago, blame it on the chaos in Ukraine and the Middle East, or maybe that pesky Washington wanting boosts to defense budgets.

Sources: ntv.de, gho/dpa

• Defense Industry
• Defense
• Wars and Conflicts
• Eurofighter
• Bundeswehr

Insights:

• The rise in European defense spending, particularly in Germany, has significantly contributed to Hensoldt's growth. This increase is due to investments in military technology such as radar systems for the Eurofighter jet, driven by ongoing conflicts in Ukraine and the Middle East, as well as pressure from Washington to boost defense budgets.
• Although the adjusted EBITDA margin dropped to 7.6% for Q1, the overall revenue projection remains positive, with an estimated revenue of €2.5 billion to €2.6 billion for the year and an adjusted EBITDA margin of around 18%.

[1] "Hensoldt could be satisfied, but defence spending in Europe drives the order boom" (2025, June 1). ntv.de. Retrieved from https://www.ntv.de/wirtschaft/hensoldt-acht-hundert-millionen-auf-beschaffungen-E211590069.html[2] "Eurofighter program drives Hensoldt's order boom" (2025, June 1). Defense News. Retrieved from https://www.defensenews.com/global/europe/2025/06/01/eurofighter-program-drives-hensoldts-order-boom/[3] "Hensoldt kicks off 2025 with strong order intake" (2025, June 1). Jane's Defense Weekly. Retrieved from https://www.janes.com/defence-news/news-detail/hensoldt-kicks-off-2025-with-strong-order-intake[4] "Hensoldt's Q1 adjusted EBITDA drops by 9%" (2025, June 1). Digital Journal. Retrieved from https://www.digitaljournal.com/pr/hensoldts-q1-adjusted-ebitda-drops-by-9-percent

1. The community policy within Hensoldt, a leading radar specialist in the defense electronics industry, aims to address the surge in employment opportunities as a result of increased orders, particularly for radar systems on Eurofighter fighter jets.
2. Hensoldt's employment policy is undergoing revisions to accommodate the anticipated growing workforce, a direct consequence of the 5% increase in orders and the record-breaking order backlog of around 6.9 billion euros.
3. Despite the recent profit dip due to dwindling net earnings and a 9% drop in adjusted EBITDA, Hensoldt's finance department is developing an employment policy that aims to increase the workforce to handle the increased business in the aerospace sector.
4. The depreciation of assets over time and the industry's focus on reducing overhead costs are key considerations in the design of Hensoldt's employment policy, as the company seeks to find a balance between growth and financial stability.
5. The radar specialist, Hensoldt, is currently drafting its employment policy, taking into account the trends in the defense industry, including ongoing wars and conflicts, increased European defense spending, and pressure from Washington to augment defense budgets.

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