Despite a significant upgrade from Bank of America, shares in defense electronics specialist Hensoldt fell sharply on Thursday. The decline occurred as the company published its full annual report for 2025, which confirmed its growth targets for the current year. The positive analyst action was overshadowed by a broad downturn across the defense sector.
Confirmed Figures and Forward Guidance
Hensoldt’s 2025 financial report contained no major surprises. The group reported revenue of €2.46 billion. Its net result declined to €86 million, down from €106 million the previous year, a drop attributed to special effects at the corporate level. For 2026, management anticipates revenue of approximately €2.75 billion, with an adjusted EBITDA margin forecast between 18.5% and 19.0%. The company also plans to increase its dividend to €0.55 per share.
Analyst Upgrade Fails to Lift Sentiment
Bank of America analyst Benjamin Heelan raised his rating on Hensoldt from “Neutral” to “Buy,” citing a potential recovery of around 20%. Heelan highlighted the company’s strong positioning in air defense, a segment estimated to account for 65% to 70% of total revenue. His price target was slightly adjusted from €90.00 to €88.50.
The upgrade provided little support to the stock price. In a session marked by widespread weakness among defense peers—with Rheinmetall down 3.4% and RENK plunging 8.5%—Hensoldt shares closed Thursday’s trading with a loss of roughly 5.6%. At €70.00, the stock now trades nearly 40% below its 52-week high of €115.10.
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Divergent Views from Research Firms
Not all market observers share Bank of America’s optimistic outlook. On the same day, mwb research reaffirmed its “Sell” rating on Hensoldt, attaching a price target of €57.00. This target sits significantly below the current trading level.
Operational Expansion Underway
Internally, Hensoldt is pursuing its “Operations 2.0” program. This initiative involves expanding production capacities, establishing a new logistics center, and relocating its Optronics division to Oberkochen. The company’s order backlog stood at €8.83 billion at the end of 2025, with order intake surging 62% year-over-year.
The next financial report is scheduled for May 6, 2026, followed by the Annual General Meeting on May 22. The coming months will reveal whether the company’s operational strength can drive the share price toward Bank of America’s target or if the more pessimistic view from mwb research proves to be the more accurate benchmark.
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