Hensoldt Widens Radar Footprint Beyond Europe as Orders Surge and Dividend Increases

Hensoldt secures radar deals in Canada and South Africa, Q1 orders nearly double to €1.5B. Revenue up, dividend raised 10%. Stock clears 200-day MA, but analyst sees limited upside.

Hensoldt is extending its reach well beyond the continent’s defence boom. The Munich-based sensor specialist has bagged two export contracts on the same day — one to supply air-traffic radar for the Royal Canadian Air Force, the other to install a bird-detection system at a South African airport. The deals underscore that the company’s growth is not solely reliant on European rearmament.

The Canadian order, placed by SkyAlyne — a joint venture between CAE and KF Aerospace — involves the ASR?NG combined primary and secondary radar, capable of tracking objects over 200 kilometres. Its signal-processing technology filters out interference from wind turbines, an increasingly critical capability in congested airspace. The system will be deployed at 15 Wing Moose Jaw as part of the Future Aircrew Training programme. Hensoldt already operates older radar generations at six other Canadian air force bases. Meanwhile, its South African subsidiary will act as prime contractor for an avian radar system at King Shaka International Airport, working alongside Robin Radar Systems, airport operator ACSA and the University of KwaZulu-Natal.

That cross-border momentum is mirrored in the group’s financials. In the first quarter, Hensoldt’s order intake nearly doubled to €1.5 billion, pushing the total backlog close to €10 billion. Revenue rose to €496 million, while adjusted EBITDA climbed to €44 million. Management has reaffirmed its full-year guidance for both sales and profit. The record order book, bolstered by a major radar contract for the European Sky Shield air-defence system signed in late April, provides a sturdy foundation for the coming quarters.

Shareholders are sharing in the spoils. The annual general meeting on 22 May approved a 10% dividend increase to €0.55 per share, with the payout flowing today. The stock, which had rallied earlier in the week to €87 before easing back to around €85.60, now sits above its 200-day moving average of €84. That technical breakout marks the first time in months the shares have cleared that long-term trend indicator.

Not everyone is cheering, however. JPMorgan analyst David H. Perry rates the stock “Neutral” with a €85 price target, arguing that peers such as Renk and Rheinmetall offer greater upside. He also points to Hensoldt’s negative free cash flow and high start-up costs for large projects as near-term drags. On the chart, the next test is the €90 resistance level. A clean break could open the path towards the six-month high of €92.80. Conversely, slipping back below the 200-day line would reignite downside risks and could trigger a retest of lower support zones.