By Chiara Holzhaeuser and Isabel Demetz
(Reuters) -Hensoldt reported on Wednesday a 24.1% rise in adjusted core profit for the first nine months of 2024 driven by sales growth in its core business and the first-time inclusion of defence software company ESG, which it acquired in December.
The German defence electronics specialist posted adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 187 million euros ($204 million), citing sales of its TRML-4D radar system as one of the key drivers.
The company reported an order intake of 1.86 billion euros for the first nine months of 2024, up 44.9% on the same period last year. That was mainly due to the sensors segment including orders from Germany’s armed forces and additional TRML-4D radars for the European Sky Shield Initiative for Latvia and Slovenia and in support of Ukraine.
Ukraine directly accounts for 3% of Hensoldt’s order backlog, but orders keep coming in, Chief Financial Officer Christian Ladurner said on a call.
“I don’t see at all that air defense won’t be a topic anymore if there is a ceasefire,” Ladurner added when asked about Donald Trump winning the U.S. presidential election and the possible impact on U.S. funding of the war in Ukraine.
CEO Oliver Dörre told Reuters he expects half of Hensoldt’s business to continue to come from Germany, while Europe will contribute 30%, adding that the company was also considering acquisitions to strengthen its position.
“Technology and internationalisation, these are the drivers for potential acquisitions,” he said in an interview.
Hensoldt confirmed its full-year guidance and expects the growth momentum seen in the first nine months to continue in the final quarter, Ladurner told Reuters.
Based on the results, Hensoldt narrowed its 2024 book-to-bill ratio forecast to 1.2 times from a previous range of 1.1-1.2 times.
($1 = 0.9178 euros)
(Reporting by Chiara Holzhaeuser and Isabel Demetz, additional reporting by Matthias Inverardi: Editing by Mark Potter and Alexander Smith)
