- Order intake of EUR 546.2 million in first quarter of 2021 significantly above previous year and slightly above strong fourth quarter 2020
- First-quarter revenue of EUR 208.8 million likewise above previous year by 6.2%
- Adjusted EBITDA margin slightly down on previous year due to growth investments
- Full year guidance confirmed for all key performance indicators
Taufkirchen/Germany. HENSOLDT AG (“HENSOLDT”) once again secured important major orders in both the Sensors and the Optronics segments in the first quarter of 2021. At EUR 546.2 million (Q1 2020: EUR 184.6 million), the order intake was no less than EUR 8.3 million above the strong fourth quarter of 2020. This increased the order backlog to EUR 3,770 million. Revenue of EUR 208.8 million (Q1 2020: EUR 196.6 million) exceeded the previous year’s level by 6.2%. Given the good business performance in the first quarter, HENSOLDT has confirmed its 2021 full year guidance for all key performance indicators.
Thomas Müller, CEO of HENSOLDT AG, said: “We are very proud to have maintained our growth trajectory from last year in the first quarter of 2021. The Quadriga contract as well as the surveillance and reconnaissance platform for the Dutch Fennek are impressive proof of our customers’ strong confidence in our technological capabilities. With further orders close to being finalised, we are very optimistic about the current year. We deliver what we promise.”
Axel Salzmann, CFO of HENSOLDT AG, said: “Our business is developing fully to plan, driven above all by steady conversion of our order backlog into revenue and by our ongoing cost discipline. To maintain the positive momentum in our business, we are selectively investing in expanding our production and development capabilities. While this investment affects our operating earnings, it is essential in order to maintain our growth path.”
Further strong order intake
HENSOLDT AG’s growth was driven by a favourable development orders inflow from both the Sensors and the Optronics segments.
One landmark order in Sensors was a major contract from the German air force as part of the Quadriga programme to procure 38 Eurofighter combat aircraft. The contract to produce and supply radar and self-protection systems is worth around EUR 300 million. In connection with various Eurofighter orders, HENSOLDT had already booked a total order intake of some EUR 1.8 billion by the end of the first quarter of 2021. For the financial year 2021, the company anticipates further orders from the Eurofighter business in the triple-digit million range.
Revenue and earnings development as planned
In the initial stages, the numerous major new orders are subject to usual ramp-up effects. The EBITDA margin, at 7.2% (Q1 2020: 9.9%), and the adjusted free cash flow before interest and taxes, at EUR -32.0 million (Q1 2020: EUR -16.2 million), developed as planned and were slightly down on the same quarter of the previous year. As is in the industry usual, the first half-year is weaker for HENSOLDT in terms of revenue and margin.
LEONARDO S.p.A. becomes additional anchor shareholder
With the announcement of LEONARDO S.p.A. to acquire 25.1% of HENSOLDT shares from KKR, the company gains another major shareholder. HENSOLDT is already today successfully collaborating with Leonardo on several programs.
Outlook for 2021 confirmed
Fully on track in its strategic growth plan, HENSOLDT is able to confirm its guidance for 2021. For the full financial year 2021, HENSOLDT expects currency and portfolio-adjusted consolidated revenue of between EUR 1.4 billion and EUR 1.6 billion as well as an adjusted EBITDA margin of about 18% before pass-through revenues. The company additionally plans to reduce net financial leverage to below 2.25x by the end of this year.
HENSOLDT’s quarterly release for the first three months of 2021 is available on the HENSOLDT AG Investor Relations website. The results for the second quarter of 2021 will be published on 4 August 2021. In view of the continuing spread of the coronavirus, the first Annual General Meeting of HENSOLDT AG will take place as a virtual meeting on Tuesday, 18 May 2021.