Hensoldt Stock: Growth Soars Beyond Market Expectations

Defense electronics specialist Hensoldt delivered impressive financial results for fiscal year 2024, exceeding market expectations with a 21.3% revenue increase to €2.24 billion. The company's adjusted EBITDA climbed to €405 million from €329 million in the previous year, surpassing its own margin forecast of 18-19% by reaching 19.4%. Particularly noteworthy was the order intake, which jumped to €2.904 billion from €2.087 billion, resulting in a stronger book-to-bill ratio of 1.3 compared to 1.1 in the prior year. This robust performance has prompted Hensoldt to reward shareholders with a proposed dividend increase of 25%, raising the payout to €0.50 per share. The stock responded positively to these announcements, gaining 0.5% in XETRA trading and reaching a daily high of €52.80, approaching its 52-week peak. This represents nearly 47% growth from its October 2024 low, reflecting strong investor confidence.

Ambitious Future Growth Targets

For 2025, the defense company foresees continued expansion with projected revenues between €2.5 and €2.6 billion, while maintaining an adjusted EBITDA margin of approximately 19% before low value-added business volume. The company's long-term strategy aims to more than double current revenue levels, targeting €5 billion by 2030. This ambitious outlook is supported by persistent geopolitical tensions driving demand for sophisticated electronic defense solutions, particularly in Europe where defense capabilities require significant enhancement. The management team believes Hensoldt is strategically well-positioned to capitalize on these market conditions, making the stock an attractive option for investors looking to benefit from the ongoing defense sector boom.