HENSOLDT raises adjusted free cash flow guidance for 2026 and confirms net leverage target
HENSOLDT raises its adjusted free cash flow guidance for the 2026 financial year from around 40% to around 50% conversion on adjusted EBITDA.
The increase is mainly driven by a higher level of customer advance payments, supported by accelerated procurement processes in Germany.
HENSOLDT confirms all other key elements of its 2026 guidance, including book-to-bill, revenue and adjusted EBITDA margin. The company also confirms its net leverage target of around 1.5x for the 2026 financial year.
Christian Ladurner, CFO of HENSOLDT, said: “The higher cash conversion guidance reflects the strong cash dynamics in our business. Accelerated procurement processes and higher customer advance payments support our ability to make the necessary investments to meet current and future customer demand.
At the same time, we remain disciplined in how we allocate capital and continue to manage our balance sheet in line with our communicated targets.”
The improved adjusted free cash flow is expected to offset the cash impact of the purchase price payment for the acquisition of Nedinsco. As a result, HENSOLDT continues to expect net leverage of around 1.5x for the 2026 financial year.
The updated free cash flow guidance does not change HENSOLDT’s outlook for book-to-bill, revenue or adjusted EBITDA margin for the 2026 financial year.
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HENSOLDT is a leading European high-tech company in the defence and security industry, based in Taufkirchen near Munich. The company develops sensor solutions, electronics and software for the air, land, sea, cyber and space domain, helping armed forces worldwide to detect threats early and make informed operational decisions.
Building on decades of experience in mission-critical sensor technology, HENSOLDT combines radar, optronics, electronics and cyber expertise with data-driven software and artificial intelligence. The aim is to integrate and analyse sensor data from different platforms and domains and merge it into a reliable situational picture.
HENSOLDT has thus evolved from a traditional sensor supplier to a new-generation system integrator – a ‘neo-system house’ that enables networked, Software-Defined Defence capabilities and supports information superiority in missions.
In the 2025 financial year, HENSOLDT achieved a turnover of €2.46 billion with around 9,500 employees. The company is listed on the Frankfurt Stock Exchange in the MDAX.