Hensoldt AG, a firm specializing in sensor and security solutions, reaffirmed its fiscal predictions for 2024 and enhanced facets of its mid-term goals during its Capital Markets Day in London. The company also introduced its 'North Star' growth strategy, devised to ensure sustained, robust expansion.
The company projects a modest rise in its adjusted EBITDA and revenues of approximately 2.3 billion euros by 2024 due to a significant order backlog. An adjusted EBITDA margin prior to business pass-through is predicted to be within the 18 to 19 percent range in 2024.
Having logged an order backlog of 6.5 billion euros in the first three quarters of the fiscal year 2024, Hensoldt foresees high revenue visibility. The company has enhanced its mid-term outlook for adjusted EBITDA margin before pass-through business to around 20 percent.
The company anticipates a more rapid order intake growth in the mid-term compared to revenues. By 2025, Hensoldt aims for a low double-digit percentage in revenue growth rate and a mid-term annual average growth rate of 10 percent. About 86 percent of the projected revenues for 2025 from the existing order backlog (including confirmed, short-cycle, and aftermarket business).
Considering the global security situation, Hensoldt predicts a substantial increase in defense spending. They expect higher than average rate defense electronics demand. With a market growth rate of around 10 percent in Germany and about 7 percent in Europe and international markets, the company sees promising order potential.
Hensoldt also revealed its ambition to generate revenues of around 5 billion euros by 2030, mainly via organic growth. The firm remains committed to a dividend payout ratio of 30-40 percent of its adjusted net income for 2024 and the medium term.
Preliminary results for the full year 2024 are scheduled for release on February 27.
The material has been provided by InstaForex Company -
www.instaforex.com
