HENSOLDT Confirms 2026 Financial Targets and Lifts Adjusted Free Cash Flow Guidance to Around 50 Percent

HENSOLDT Confirms 2026 Financial Targets and Lifts Adjusted Free Cash Flow Guidance to Around 50 Percent

(IN BRIEF) HENSOLDT has increased its adjusted free cash flow guidance for the 2026 financial year, raising expected conversion on adjusted EBITDA from around 40 percent to around 50 percent. The improvement is primarily driven by higher customer advance payments, supported by accelerated procurement processes in Germany. Despite the raised cash flow outlook, HENSOLDT has confirmed all other major elements of its 2026 guidance, including book-to-bill, revenue and adjusted EBITDA margin. The company also reaffirmed its net leverage target of around 1.5x for the financial year. The stronger adjusted free cash flow is expected to offset the cash impact of the purchase price payment for the acquisition of Nedinsco, helping HENSOLDT maintain its balance sheet targets while continuing to invest in meeting customer demand.

(PRESS RELEASE) TAUFKIRCHEN, 1-Jun-2026 — /EuropaWire/ — HENSOLDT has raised its adjusted free cash flow guidance for the 2026 financial year, increasing its expected conversion on adjusted EBITDA from around 40 percent to around 50 percent. The company said the improved outlook is mainly supported by stronger customer advance payments, which have been helped by faster procurement processes in Germany.

The updated guidance reflects stronger cash generation across the business while leaving the rest of HENSOLDT’s 2026 financial outlook unchanged. The company continues to confirm its expectations for book-to-bill, revenue and adjusted EBITDA margin for the year.

HENSOLDT also reaffirmed its net leverage target of around 1.5x for the 2026 financial year. The improved adjusted free cash flow is expected to offset the cash impact of the purchase price payment related to the acquisition of Nedinsco, allowing the company to maintain its previously communicated leverage target.

Christian Ladurner, Chief Financial Officer of HENSOLDT, said the higher cash conversion guidance demonstrates the strong cash dynamics within the company’s business. He noted that accelerated procurement processes and increased customer advance payments strengthen HENSOLDT’s ability to make the investments required to meet both current and future customer demand.

Ladurner added that the company remains disciplined in its capital allocation and continues to manage its balance sheet in line with its communicated financial targets.

The revised adjusted free cash flow guidance does not affect HENSOLDT’s broader outlook for 2026. The company continues to expect its book-to-bill ratio, revenue development and adjusted EBITDA margin to remain in line with previous guidance.

Media Contact:

Joachim Schranzhofer
Head of Communications and Marketing
HENSOLDT Corporate
joachim.schranzhofer@hensoldt.net
+49 89 51518 1823

SOURCE: HENSOLDT