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German defence supplier Hensoldt said growing geopolitical uncertainty and heightened tensions are expected to boost its order book in the coming year.
The Bavarian-based maker of defence electronics hardware confirmed its outlook for fiscal 2024 and raised parts of its medium-term target at its Capital Markets Day in London on Thursday.
Chief executive Oliver Dörre said he expects revenue of €2.3 billion ($2.4 billion) for 2024. In 2025, revenue is set to rise by a low double-digit percentage and in the medium term to increase by an average of 10% per year.
According to Dörre’s plans, around 18% to 19% of sales in the current year are to remain as operating earnings before interest, taxes, depreciation and amortization (EBITDA).
For 2025, 86% of the forecast revenues are already covered by the existing order backlog.
Amid the tense security global situation, Hensoldt said it anticipates strong growth in defence spending in the future, with the demand for defence electronics likely to increase at an above-average rate in the medium term.
The company further said its goal is to achieve revenues of around €5 billion by 2030, primarily through organic growth.
Shareholders are expected to benefit from the trends: Hensoldt continues to target a dividend payout ratio of 30% to 40% of adjusted net profit, both for 2024 and in the medium term.
