DGAP-News: HENSOLDT AG / Key word(s): Quarter Results
HENSOLDT AG continues growth trajectory in the first nine months of 2020 and confirms full-year guidance
- Revenue up 5.5% in first nine months of 2020 to EUR 712 million
- Adjusted EBITDA improves by 3.2% to EUR 103 million
- Order backlog climbs to record level of EUR 3.4 billion
- IPO proceeds and strong operating cash flow reduce net leverage to 3.1x
- Forecast for full-year confirmed in all KPIs
Thomas Müller, CEO of HENSOLDT AG, says: "2020 is an absolutely step-changing year for HENSOLDT. Not only did we take the important step of listing on the stock exchange, but we are also fully on track from an operational standpoint. We are growing profitably, have secured strategically important milestone orders, and continue to set new standards with our high-end electronic solutions. At the same time, we are continuously investing in expanding our global footprint and are systematically extending our technology leadership position in defence electronics."
Axel Salzmann, CFO of HENSOLDT AG, adds: "The first nine months of 2020 show the resilience of HENSOLDT's business model. During this period, we significantly increased both revenue and profitability. After the IPO, we quickly and substantially reduced our net leverage. Therefore, we continue to expect that we will meet our targets for 2020 despite the ongoing COVID-19 pandemic."
Order backlog at record level
Especially in terms of order intakes, the first nine months of 2020 were a clear confirmation of HENSOLDT's strategy of investing heavily in innovations and rapidly bringing them to market. For instance, HENSOLDT secured the EUR 1.4 billion contract to jointly develop and produce a new Active Electronically Scanned Array Radar for the German and Spanish Eurofighter. For the first time, HENSOLDT has assumed the role of a prime contractor and system leader in such a milestone contract. In total, the order backlog consequently increased to
Stable revenue and earnings growth
HENSOLDT continues its stable growth from preceding years with a 5.5% improvement in revenue. The increase is primarily driven by the acquisition of French defence electronics group Nexeya in October 2019. Also, the Customer Services division grew particularly strongly. The improvement in adjusted EBITDA to EUR 102.8 million is mainly due to the higher revenue as well as to efficient project management.
As planned, HENSOLDT used the proceeds from the IPO in September 2020 among other things to strengthen its liquidity. Combined with a strong operating cash flow, the company improved its net leverage from 4.6x to 3.1x at the end of the third quarter of 2020. As stated ahead of the IPO, HENSOLDT expects a further improvement in net leverage to around 3.0x by the end of 2020 and therefore considers itself to have solid finances especially in the current difficult economic environment.
Ongoing investments in global footprint, new technologies and efficiency
HENSOLDT has expanded its global footprint in recent years with the acquisition and successful integration of five companies. With the planned takeover of Tellumat (PTY) Ltd.'s Air Traffic Management (ATM) and Defence & Security business units, HENSOLDT strengthens its footprint on the African continent adding locally developed and produced radars to its African portfolio. HENSOLDT expects the closing of the transaction by the end of 2020.
Alongside the strong focus on investment in new products and technologies, HENSOLDT also invests in its efficiency. As part of the HENSOLDT GO! transformation program, the company has implemented around 300 measures to become even more competitive, innovative and efficient.
Guidance for 2020 confirmed
In view of the strong business performance in the first nine months of 2020, HENSOLDT confirms the guidance for 2020 published in the course of the IPO. The Management Board of the HENSOLDT Group assumes revenue growth for 2020 and a significant increase in order intake. Adjusted EBITDA for the full year 2020 is expected to be close to prior year-level.
HENSOLDT's quarterly release for the first nine months of 2020 is available on the HENSOLDT Investor Relations website. HENSOLDT will report full-year results for 2020 in March 2021.
HENSOLDT is a pioneer of technology and innovation in the field of defence and security electronics with more than 150 years of heritage from companies like Carl Zeiss, Airbus, Dornier, Messerschmitt and Telefunken. Based in Taufkirchen near Munich, the company is a German Champion with strategic leadership positions in the field of sensor solutions for defence and non-defence applications. HENSOLDT develops new products to combat a wide range of threats based on innovative approaches to data management, robotics and cyber security. With more than 5,500 employees, HENSOLDT generated revenue of EUR 1.11 billion in 2019.
HENSOLDT press contact
10.11.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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