Hensoldt's Shareholders Back Dividend Rise as €1.48 Billion Order Inflow Highlights Execution Stakes
23.05.2026 - 10:32:29 | boerse-global.de
Hensoldt is sitting on a historic pile of work. The defense electronics group's order backlog swelled to €9.8 billion in the first quarter, more than double the normal pace of new business, as European rearmament shifts from political rhetoric to concrete procurement. But the very scale of that book is now sharpening questions about the company's ability to convert contracts into revenue quickly enough to justify the stock's recent surge.
Shareholders gave management a clear vote of confidence at Friday's virtual annual general meeting. The dividend for fiscal 2025 was approved at €0.55 per share, up 10% from the prior year's €0.50. The payout, alongside a €2.75 billion revenue target for 2026, signals that the board sees the current momentum as durable rather than cyclical. CEO Oliver Dörre framed the moment as the start of "a long-term growth path," noting that political decisions are finally crystallising into orders.
The first-quarter numbers underpin that optimism. Revenue climbed 25.6% to €496 million, while order intake doubled to €1.48 billion — a figure that alone would have covered nearly 30% of the full-year target. The earnings per share loss narrowed from €0.26 to €0.16, reflecting operational improvement even if profitability remains elusive. Hensoldt also appointed Inka Tews as chief human resources officer, effective 1 May, underscoring the need to scale headcount to match the workload.
Should investors sell immediately? Or is it worth buying Hensoldt?
Yet the rally that lifted the stock 19% in the seven days through Friday has split analyst opinion. mwb research maintains a sell rating, arguing the move lacks fundamental justification. Deutsche Bank, Jefferies and Warburg Research all recommend buying, with price targets ranging from €90 to €101. At around €88, the shares trade at a market capitalisation of roughly €10.2 billion, with an RSI of 55.4 indicating neither overbought nor oversold territory.
A wild card for the entire sector emerged from a DĂĽsseldorf court. The Oberlandesgericht DĂĽsseldorf has referred a key provision of Germany's new Bundeswehr procurement acceleration law to the Federal Constitutional Court, questioning whether the removal of suspensive effect for complaints violates constitutional protections. If the higher court strikes down the rule, the expected speed-up in defence contracting could stall, potentially delaying the very orders Hensoldt is banking on.
Technically, the stock has reclaimed ground above its 200-day moving average of €83.82, now sitting nearly 5% above that level. The 50-day average at €77.72 lies well below the current price, confirming the short-term trend as intact. Still, the 52-week high of around €115 remains a distant target, and the €90 psychological barrier could prove sticky. A consolidation after a near-19% weekly move would be routine.
The next tangible catalyst arrives on 31 July with the second-quarter report. Until then, the debate will centre on whether the record order intake is a harbinger of sustained earnings growth or a temporary spike that leaves valuation stretched. The immediate test for Hensoldt is less about winning contracts and more about turning its historic backlog into a reliable profit engine.
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