Hensoldt reported a marked improvement in cash generation in the first quarter of 2026, driven mainly by higher customer advances tied to faster procurement processes in Germany. The defense electronics group said the stronger cash inflow came alongside a record quarter for new orders and a record backlog.
Order intake reached about 1.48 billion euros, more than doubling from a year earlier, while the backlog rose to roughly 9.8 billion euros. Revenue increased about 25% to 496 million euros, and adjusted EBITDA margin improved to 8.9% from 7.6% a year earlier.
The company’s book-to-bill ratio stood at around 3.0 times, underscoring a flow of new business well above sales recognized in the period. Hensoldt confirmed its 2026 guidance, including revenue growth toward about 2.75 billion euros and gradual margin improvement.
The stronger cash flow reflects the timing of advances on long-term defense programs, as Germany accelerates procurement linked to its rearmament push. The first quarter is typically a weak cash period for defense contractors, making the turnaround more notable for investors tracking Hensoldt’s funding profile and execution.