Hensoldt Wins Over Shareholders and Nabs Canadian Tank Contract as Stock Rallies 21%

Hensoldt shares close at €88.06 after shareholders approve strategy and dividend, while a new Canadian contract and record €9.8B order backlog boost outlook.

Hensoldt shares charged to a Friday close of €88.06, capping a week in which the defence electronics group delivered a double dose of positive news. Shareholders had just given near-unanimous backing to the company’s dividend and strategy at the annual general meeting, while a new service deal with the Canadian armed forces added fresh momentum to an already record order book.

The AGM, held on 22 May in Taufkirchen, saw 67.11% of the share capital represented. All management proposals sailed through: the dividend for 2025 was approved with 99.99% of votes cast, the remuneration report secured 92.83%, and the appointment of KPMG as auditor for 2026 received 97.66% support. The strong show of unity came despite isolated shareholder concern over cashflow pressure from heavy capital spending.

From a total distributable profit of roughly €173 million, Hensoldt will pay out €0.55 per share — a payout of €63.5 million, with the remainder carried forward. The ex-dividend date is Monday, 25 May, and payment follows two days later. German retail investors face a quirk: because the dividend is drawn entirely from the company’s tax contribution account, no withholding tax, solidarity surcharge or church tax will be deducted. Instead, the payment reduces the tax cost base of the shares.

Alongside the shareholder meeting, Hensoldt announced a service contract worth approximately €10 million from the Canadian military. The deal covers spare parts for the optronic equipment installed on Canada’s Leopard 2 main battle tanks, strengthening the company’s role as a technical support provider across NATO. The win broadens Hensoldt’s North American footprint at a time when the European defence sector is buzzing with activity.

The company’s first-quarter figures, released ahead of the AGM, provide the underlying heft. order intake hit €1.483 billion during the period, lifting the backlog to a record €9.8 billion. Revenue stood at €496 million. CEO Oliver Dörre confirmed the full-year 2026 outlook: revenue of roughly €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. Recent orders for the Schakal and Puma platforms, along with contract extensions for Eurofighter Mk1 radars, have driven the bumper intake.

The next month will see Hensoldt pitch its story to investors at four conferences: the Deutsche Bank dbAccess European Champions Conference in Frankfurt on 26 May, followed by J.P. Morgan’s European Industrials Conference in London on 16 June, the Deutsche Bank Defence Conference in London on 22 June, and the Mediobanca CEO Conference in Milan on 23 June. For all the record backlog and shareholder backing, the market’s focus will remain on whether management can convert that order mountain into steady revenue and margin improvement over the coming quarters.