HENSOLDT Increases Free Cash Flow Guidance for 2026

HENSOLDT has announced an increase in its adjusted free cash flow guidance for 2026, raising it from a 40% conversion on adjusted EBITDA to approximately 50%. This adjustment is primarily due to a rise in customer advance payments, facilitated by faster procurement processes in Germany.

The company maintains all other elements of its 2026 guidance, including book-to-bill, revenue, and adjusted EBITDA margin. Additionally, HENSOLDT reaffirms its net leverage target of around 1.5x.

The enhanced cash flow is intended to mitigate the financial impact of acquiring Nedinsco, sustaining the expected net leverage target. HENSOLDT asserts that the updated cash flow guidance will not alter its outlook on key financial metrics for the 2026 fiscal year.