Finance
Hensoldt reports revenue miss but defense boom supports backlog
Published by Global Banking & Finance Review®
Posted on February 26, 2026
2 min readLast updated: February 26, 2026
Quick Summary
Hensoldt missed 2025 revenue consensus but posted a surge in orders, driving a record backlog. Profitability stayed strong and 2026 guidance points to higher sales and margins as Europe’s defence buildup continues.
Hensoldt Misses Revenue Target as Defense Surge Bolsters Order Backlog
Hensoldt’s 2025 Results and 2026 Outlook
Feb 26 (Reuters) - German defence contractor Hensoldt on Thursday reported full-year revenue slightly below market expectations but a surge in high-value orders and strong backlog demonstrated its gains from Europe's rearmament push.
Revenue Miss vs. Consensus
The sensors and electronic warfare specialist reported 2025 revenue of 2.46 billion euros ($2.90 billion), below the 2.50 billion euro company-compiled consensus. The shortfall occurred despite what executives described as structurally rising demand, supported by Germany's defense reset and steady procurement activity by its NATO allies.
"The geopolitical situation is forcing Europe to sustainably strengthen its defence capabilities," CEO Oliver Doerre said in a statement. "Germany has taken on a key role here and has been a major driver of our order intake momentum in 2025."
Ownership and Governance
Germany retains a 25.1% golden share in the company, reflecting its sensitivity as a national security asset, while Italy's Leonardo holds roughly 23%.
Profitability and Margins
Profitability remained resilient. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to 452 million euros, reflecting a margin of 18.4%, in line with expectations and above the company's own forecast.
Orders and Backlog Momentum
Order intake jumped 62% to 4.71 billion euros, lifting its order backlog to 8.83 billion euros.
Operational Constraints
Still, the numbers highlight Hensoldt's constraints. Supply chain tightness in electronic components and ongoing hiring bottlenecks continue to shape the pace at which it can convert its backlog into revenue.
For 2026, Hensoldt forecast revenue of about 2.75 billion euros and set an adjusted margin target of 18.5%-19.0%.
Book-to-Bill Expectations
Management also reiterated expectations for a sustained book-to-bill ratio in the 1.5-2.0 range -- a signal that it sees no cooling in demand for its radar, electronic warfare and optoelectronics devices.
Key Platforms Equipped
Hensoldt's sensors equip platforms from the Eurofighter Typhoon to the Puma infantry fighting vehicle.
FX Rate Reference
($1 = 0.8492 euros)
(Reporting by Maria Rugamer; Editing by Matt Scuffham)
Key Takeaways
- •2025 revenue of €2.46B came in slightly below a €2.50B consensus.
- •Order intake jumped 62% to €4.71B, boosting backlog to €8.83B.
- •Adjusted EBITDA reached €452M with an 18.4% margin, in line to above guidance.
- •For 2026, management guides to ~€2.75B revenue and an 18.5%–19.0% margin.
- •Book-to-bill targeted at 1.5–2.0; conversion paced by component supply and hiring.
Frequently Asked Questions about Hensoldt reports revenue miss but defense boom supports backlog
1What is the main topic?
Hensoldt reported full-year revenue slightly below expectations but delivered strong order intake and a record backlog, underscoring continued demand from Europe’s defence rearmament.
2Did Hensoldt beat or miss expectations?
It missed on revenue versus company-compiled consensus, but profitability was resilient and operational momentum remained strong thanks to high-value orders.
3What is Hensoldt’s outlook for 2026?
The company guides to roughly €2.75B in revenue with an adjusted EBITDA margin of 18.5%–19.0%, and expects a sustained 1.5–2.0 book-to-bill ratio.
