DGAP-News: HENSOLDT AG increases revenue and earnings significantly in the first half of 2022 and raises expectations for the ratio of incoming orders to sales | 08/04/22

DGAP News: HENSOLDT AG / Keywords: Half-year results

HENSOLDT AG increases revenue and earnings significantly in the first half of 2022 and increases expectations for the ratio between incoming orders and sales

04.08.2022 / 07:31
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HENSOLDT AG increases revenue and earnings significantly in the first half of 2022 and increases expectations for the ratio between incoming orders and sales

  • Turnover grows strongly by 40.3% to DKK 682 million. EUR in the first half of 2022
  • adjusted EBITDA improved by 37.7% to EUR 61 million
  • 8.9% adjusted EBITDA margin on a level with the same period last year
  • Strong order intake of 948 million EUR in the first half of the year
  • The relationship between incoming orders and sales (book-to-bill ratio) adjusted upwards for the financial year 2022

Taufkirchen, 4 August 2022 HENSOLDT AG (HENSOLDT) accelerated its growth course in the first half of 2022 and set the course to expand its strategic position in the European security and defense industry. The technology company was able to book additional important orders and realize ongoing projects with high profitability.

HENSOLDT’s sales increased by 40.3% to EUR 682 million. compared to the previous year (first year: EUR 486 million). Adjusted EBITDA reached EUR 61 million. in the first half of the year, an equally significant increase of 37.7% (first year: EUR 44 million). At 8.9%, the adjusted EBITDA margin was on par with the previous year (first year: 9.1%) despite a higher share of the business volume with a low value added share. The adjusted free cash flow before interest and tax of DKK -157 million. EUR (first year: -57 million EUR) reflects not only the seasonal nature of the key figure, but also the planned implementation of major projects and the associated increase in working capital.

With the positive business development in the first half of the year, HENSOLDT confirms the full-year forecast for sales, adjusted EBITDA, net debt ratio and dividend. Due to increased visibility of the sales pipeline, the company is raising its book-to-invoice forecast to between 1.1 and 1.2.

Thomas Müller, CEO of HENSOLDT AG, says: The first half of the year underlines the fact that HENSOLDT is approaching the tour de force ahead of our industry from a position of strength. With the Danish Parliament’s approval of the special fund and the increased defense budget for 2023, an important foundation has been laid. armed forces to become a future-oriented army, and corresponding tenders are currently being initiated. As a high-tech supplier of sensor solutions, we can make a decisive contribution across all segments as well as security and defense applications. We have already raised our forecast for the book-to-bill ratio accordingly for the current financial year. I am also convinced that there can be only one answer to the new security policy challenges: deepening European cooperation. There must be no recourse to individual states going it alone. In this spirit, we are intensifying our collaboration with Leonardo on the joint development and manufacture of radars and self-protection systems for the Eurofighter, next-generation frigate warfare systems, network-based sensor solutions for land systems and next-generation air defense systems, including hypersonic missile defense. We also see this alliance as a possible nucleus for wider European cooperation.

Christian Ladurner, CFO of HENSOLDT AG since July 1, 2022, says: In the past few months, we have further increased our growth momentum in sales and earnings and shown how consistently we are turning our record backlog into earnings. HENSOLDT combines innovative strength with an attractive business model. This has always characterized our company and will continue to be our focus in the future. We will continue to look very disciplined on the cost side in order to finance our innovation process with high earning capacity and make targeted investments in further growth. Our entrepreneurial achievement will enable us to expand HENSOLDT’s position as a leading solutions provider for optronics and sensors across the entire electromagnetic spectrum and to further strengthen complementary growth areas of data analytics, sensor fusion and artificial intelligence. Current global developments also illustrate the social benefit and relevance of HENSOLDT. This is also reflected in our free float, so the proportion of investors with a clear ESG focus has increased from around 6% at the end of 2021 to over 20% now.

Christian Ladurner and Dr. Lars Immisch appointed to the board of HENSOLDT AG

In addition to Christian Ladurner, the board of HENSOLDT AG appointed Dr. Lars Immisch newly appointed to the executive board. dr Immisch takes over responsibility for Human Resources on 1 October. The reorganization of HENSOLDT’s management took place as part of the long-term succession planning.

Continued positive order development

With its high-performance solutions, HENSOLDT was also able to assert itself as a technology partner for important defense projects in the first half of 2022 and book corresponding incoming orders. The German navy’s multipurpose frigate F126 (formerly MKS180) is equipped with four TRS-4D radars from HENSOLDT. The order has a volume of EUR 186 million; the first F126 frigate is expected to be delivered in 2028. In addition, a long-term service contract for Eurofighter worth EUR 270 million was concluded. during the reporting period. The total order intake in the first half of the year amounted to EUR 948 million, after the milestone order for the delivery of the signals acquisition and airborne reconnaissance system PEGASUS with a volume of around EUR 1.25 billion. in the same period the year before, the comparative value had risen to EUR 2.112 billion. In the current financial year, the total order backlog rose to DKK 5.364 billion. EUR halfway (first year: EUR 5.024 billion).

expansion of collaborations

Against the background of the new security political situation in Germany, HENSOLDT agreed in April with Diehl Defense to intensify the existing cooperation within the ground-based air defence. Based on proven systems currently in production and available for short-term delivery, the two companies intend to offer top-of-the-line products to address new and emerging threats from aircraft and guided missiles. The jointly developed systems guarantee unrestricted access to national key technologies and offer the highest level of approval, certification and security of supply for operation in Germany.

Outlook updated for 2022

Due to higher visibility of the sales pipeline, the company specifies the forecast book-to-bill ratio to be between 1.1 and 1.2. The expectation for the other key figures remains unchanged: Revenue growth of 15% to EUR 1.7 billion and adjusted EBITDA of EUR 285 million to EUR 300 million is expected. The net debt ratio must be further reduced to 1.4x as planned. HENSOLDT assumes a dividend of 20% of the adjusted net result.

measurements

million euros H1 2021 H1 2022
Turnover 486 682
Adjusted EBITDA 44 61
Adjusted EBITDA margin 9.1% 8.9%
incoming orders 2.112 948
backlog 5,024 5,364
Adjusted free cash flow (before tax and interest) -57 -157

The half-yearly statement for the financial year 2022 is available on the Investor Relations website of HENSOLDT AG. Results for the first nine months of 2022 are expected to be published on 10 November 2022.

About HENSOLDT

HENSOLDT is a leading company in the European defense industry with a global reach. Based in Taufkirchen near Munich, the company develops complete sensor solutions for defense and security applications. As a technology leader, HENSOLDT drives the development of defense electronics and optronics and continuously expands its portfolio based on innovative approaches to data management, robotics and cyber security. With more than 6,400 employees, HENSOLDT achieved a turnover of 1.5 billion euros in 2021. HENSOLDT is listed on the stock exchange in Frankfurt. www.hensoldt.net

Press contact HENSOLDT

Joachim Schranzhofer T: +49 (0)89.51518.1823

M: joachim.schranzhofer@hensoldt.net

08/04/2022 Publication of a Corporate News/Financial News, transmitted by DGAP – a service of EQS Group AG.
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