Consolidation, Acquisition and Innovation
With revenue increased to €1,207 million (up 8.3%), an adjusted EBITDA margin of 18.2% and an order backlog at a record level of €3,424 million (+55%), HENSOLDT AG’s 2020 financial results exceed the company’s expectations, according to a 24 February statement.
“We have shown a strong operational performance and reached and partially outperformed our expectations in all relevant figures. This provides us with the financial leeway to continue to invest in our core business as well as in important future and key technologies. In short, in 2020 we laid the foundation for future growth to expand our leading market position for defence and security solutions,” commented CEO Thomas Müller.
In 2020, HENSOLDT successfully continued its growth trajectory, strengthening its Africa footprint (and its radar portfolio) by closing the acquisition of Tellumat’s air traffic control and defence and security businesses; and acquiring SAIL Labs, an OSINT solutions provider; and fully consolidating French defence electronics developer Nexeya, acquired in 2019.
The high order backlog – due, in part, to the company’s participation in the development of a new radar for the German and Spanish Eurofighter fleets – is proof of the sense of HENSOLDT’s strategy to market investments in key and future technologies quickly and successfully. Thanks to its technologically leading and platform-independent solutions, HENSOLDT is confident of winning orders from a pipeline of potential national and international projects worth around €10 billion in 2021-2023.
As far as 2021 is concerned, HENSOLDT expects continued positive business momentum and anticipates a currency- and portfolio-adjusted consolidated revenue figure of €1,400-1,600 million and an adjusted EBITDA margin of 18%, excluding pass-through revenues. In addition, the company plans to further reduce its debt level and to lower its net leverage to below 2.25x by the end of 2021.