Hensoldt Revenue Guidance Impact

Hensoldt, a German defense company, experienced a drop in shares after releasing its revenue guidance for 2024, which did not meet consensus expectations. The company reported higher fourth-quarter earnings and sales due to a surge in order intake amid ongoing geopolitical tensions.

Share Performance

• Hensoldt's shares fell by 5.8% to EUR31.80 at 0809 GMT on Friday, although they were still up by 30% since the start of 2024.

Revenue Forecast

• Hensoldt anticipates revenue to reach approximately 2 billion euros ($2.16 billion) in 2024, compared to EUR1.85 billion in 2023, with a much faster growth in order intake. The adjusted Ebitda margin is projected to be around 19% to 20% before pass-through revenue.

Earnings and Sales

• In the fourth quarter, the company recorded adjusted earnings before interest, taxes, depreciation, and amortization of EUR178 million, an increase from EUR166 million in the same period a year prior. Despite revenue rising to EUR711 million from EUR607 million due to a significant uptick in core business volumes and order intake rising to EUR806 million from EUR616 million, the adjusted Ebitda margin contracted to 25.1% from 27.3%.

Dividend Distribution

• The management board is proposing a dividend distribution of EUR0.40 per share, up by EUR0.10 compared to the previous year.

Outlook

• Hensoldt's revenue projection for 2024 fell short of consensus estimates of EUR2.20 billion.

The full 2023 results are set to be released on March 22.