Hensoldt Soars Past €89 as Record Orders Fuel Rally, but Governance Storm Brews at AGM

Hensoldt shares surge above €89 on record €9.8B backlog and technical breakout, but activist shareholders demand board discharge denial over export compliance concerns.

Hensoldt shareholders are experiencing the best of both worlds — and the worst. The defence electronics group’s stock has surged more than 20% in the past week to €89.02, propelled by a record order backlog and a breakthrough above the 200-day moving average. Yet at Thursday’s virtual annual general meeting, management faced an unusually hostile reception from a group of activist shareholders demanding that the board and supervisory board be denied discharge over export control and compliance concerns.

The technical breakout earlier in the week, when the shares decisively cleared the 200-day line at €83.82, marked a turning point for a stock that had been grinding higher on the back of a stellar first-quarter performance. Revenue rose 26% to €496 million, while the operating loss per share narrowed sharply from €0.26 to €0.16. The real headline, however, was the order intake: nearly €1.48 billion in the first three months of 2026, pushing the total order backlog to a record €9.8 billion — almost double the level a year ago and providing visibility for years to come.

On the governance front, the Deutsche Schutzvereinigung für Wertpapierbesitz (DSW) signalled its support for all routine agenda items, including the appropriation of retained earnings and the approval of the remuneration report. But the Dachverband der Kritischen Aktionärinnen und Aktionäre, a network of activist shareholders, filed countermotions demanding that both Vorstand and Aufsichtsrat be denied discharge. The group cited worries over export compliance and supply-chain governance — perennial flashpoints for defence contractors wrestling with ESG expectations. Management defended its record on the online platform, though the outcome of the vote, expected later in the day, will be closely watched.

Shareholders did approve a dividend of €0.55 per share for the 2025 financial year, with analysts already pencilling in an increase to €0.69 for 2026. Additional strategic tailwinds came from the “Spock 2” consortium, in which Hensoldt is bidding alongside OHB, Helsing and Norway’s Kongsberg Defence & Aerospace to build a satellite-based, AI-driven surveillance and targeting system for the Bundeswehr. The German government, which has held a 25.1% stake in Hensoldt since 2021, underscored the company’s central role in the country’s defence architecture. Airbus Defence and Space added that deploying Hensoldt’s Mk1 radar in next-generation combat systems could cut costs by more than 40%.

For the full year, management is guiding for revenue of around €2.75 billion, with a long-term target of €6 billion by 2030. Analysts expect earnings per share of €1.78 in 2026. The trouble is that the valuation has raced ahead of itself: the forward P/E now sits at roughly 40, and the average analyst price target of €91.17 is barely 2.4% above current levels. Any disappointments from here — starting with the second-quarter results on 31 July — could shave off those gains quickly. For now, Hensoldt has the orders, the technology and the political backing. Whether it also has the full confidence of its owners is a question that only the ballot box will answer.