Hensoldt Transitions from Announcements to Procurement as Record Order Book Drives Rally

Hensoldt reports record €9.8B order backlog, stock up 21% in a week, AGM approves tax-free €0.55 dividend, and signs new NATO contract with Canada.

The rhetoric around European defence spending is finally hardening into contracts, and Hensoldt is capitalising. Chief executive Oliver Dörre used the company’s annual general meeting on Friday to underline a decisive shift: political pledges are giving way to concrete purchasing decisions, a trend that is now visible in the group’s swelling order intake. The sensors specialist enters what management calls “only the beginning” of a long-term growth trajectory, backed by a record backlog of approximately €9.8 billion.

Investors have taken note. The stock finished the week at €89.52, marking a gain of nearly 21% over the past five trading sessions. It briefly pierced the €90 threshold on Thursday before settling. The rally has pushed the share price well above its 50-day moving average, a technical signal that analysts interpret as confirmation of strong upward momentum.

Shareholders at the AGM, held in Taufkirchen, lent overwhelming support to the board’s agenda. Some 67.11% of the share capital was represented, and all resolutions carried by large majorities. The compensation report, which had faced isolated criticism ahead of the meeting due to cash-flow concerns linked to heavy investment, still garnered approval from 92.83% of votes cast.

The dividend for the 2024 financial year was formally approved at €0.55 per share. The ex-dividend date falls on Monday, 25 May, with payment scheduled for 27 May. For many retail investors there is an added benefit: the distribution will again be drawn from the company’s tax-contributed equity account, meaning it remains tax-free.

A new face joined the executive board on the same day Inka Tews assumed the role of chief human resources officer, effective 1 May. She used the AGM to outline her priorities, which centre on strengthening leadership culture as Hensoldt’s operations become more complex and global in scope.

On the operational front, the company disclosed a fresh service contract with the Canadian Armed Forces worth roughly €10 million. Hensoldt will supply spare parts for the optronic equipment fitted to Leopard 2 main battle tanks, a deal that cements its role as a technical service provider within NATO supply chains.

Looking ahead, management reaffirmed its medium-term guidance. For 2026 Hensoldt targets revenue of around €2.75 billion, an adjusted EBITDA margin between 18.5% and 19.0%, and a book-to-bill ratio of 1.5x to 2.0x. The current order book, already at record levels, provides a high degree of planning certainty, according to analysts, and underpins the group’s confidence in its multi-year growth path.