Hensoldt’s Radar Milestone Sharpens Focus on a €9.8 Billion Backlog
26.05.2026 - 07:41:42 | boerse-global.de
The first operational installation of Hensoldt’s TRL-4D LR long-range radar in Brockzetel marks a tangible step in Germany’s airspace modernisation push, giving investors a concrete reference point for the defence electronics group’s swelling order book. The 13-tonne system, slated to enter service by spring 2026, is the centrepiece of the HADR NF national upgrade programme, which aims to bring the country’s surveillance infrastructure up to date by the end of the decade.
That programme forms part of a broader spending wave that has lifted Hensoldt’s total order backlog to roughly €9.8 billion – a record. First-quarter figures showed order intake doubling to €1.483 billion, fuelled by Bundeswehr contracts for the Puma infantry fighting vehicle and the new Schakal combat vehicle. The challenge now is converting that pipeline into revenue without straining cash flow, a topic the management team is expected to address today at the dbAccess European Champions Conference in Frankfurt.
Share price finds support from dividend and analyst backing
Hensoldt’s stock closed on Monday at €88.98, having gained 11.76% over the past seven days and 20.50% over the past month. The 52-week high of €115.10 remains 22.69% above the current level, while the relative strength index of 64.1 sits in neutral-to-moderately overbought territory – suggesting room for further upside if the fundamental story holds.
Should investors sell immediately? Or is it worth buying Hensoldt?
Shareholders gave 99.99% approval at the annual general meeting on 22 May to raise the dividend by 10% to €0.55 per share, with the total payout amounting to roughly €58 million. The ex-dividend effect has now passed, and the cash distribution is due tomorrow. Analysts have pencilled in dividends of €0.69 for 2026 and €0.91 for 2027, reflecting expectations of steep profit growth.
Jefferies, Deutsche Bank, Warburg Research and DZ Bank all rate the stock a “Buy”, while JPMorgan remains on the sidelines with a “Neutral” stance. Consensus earnings-per-share estimates stand at €1.78 for 2026 and €2.36 for 2027 – figures that, if achieved, would begin to justify a trailing P/E multiple of 95.67 based on 2025 earnings. The operating margin target of 18.5% to 19.0% on expected full-year revenue of around €2.75 billion provides a near-term yardstick.
Strategic acquisition to secure supply chains
Alongside the radar deployment and record orders, Hensoldt is pushing ahead with the acquisition of Dutch optronics specialist Nedinsco. The deal, financed entirely from existing resources, is expected to close by mid-2026 and is intended to strengthen the group’s control over critical components in its sensor supply chain.
The combination of a visible product milestone, a bulging contract pipeline and a targeted bolt-on acquisition paints a picture of a company executing on the defence spending cycle. Whether the valuation can expand further will depend on how quickly Hensoldt can turn its massive backlog into cash flow and operating profit – a theme that will dominate conversations on the investor conference circuit in the weeks ahead.
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