The defence electronics group Hensoldt is taking an unconventional approach to its most pressing bottleneck: talent. In a targeted raid on a struggling industrial neighbour, the company has struck a deal to hire skilled software and systems engineers directly from Voith, the German machine builder that is cutting up to 2,500 jobs worldwide. For Hensoldt, it is a rare chance to snap up precisely the expertise that is all but impossible to find on the open market.
The arrangement is straightforward. Voith employees from software and system development roles will move to Hensoldt’s southern German sites in Ulm, Immenstaad and Oberkochen. For Voith, which is shedding 380 positions in Heidenheim alone, it provides an orderly exit for displaced staff. For Hensoldt, it offers immediate access to a talent pool that matches its expansion needs.
That expansion is accelerating fast. After hiring around 1,200 people in 2025, the company plans to bring on 1,600 new recruits in 2026, pushing total headcount past 10,000. The driver is a bulging order book that has swelled to €8.83 billion. The real challenge now is converting that backlog into profitable deliveries.
Operational drag weighs on margins
The growth push comes with short-term pain. A major SAP implementation and the “Operations 2.0” efficiency programme are squeezing earnings in the near term. Hensoldt’s investment rate is temporarily rising to around six percent of revenue, while free-cash-flow conversion is falling to roughly 40 percent, as customer prepayments decline and spending climbs.
For the current financial year, management is targeting revenue of approximately €2.75 billion and an adjusted EBITDA margin between 18.5 and 19.0 percent. Analysts, however, see limited headroom. JPMorgan kept a “Neutral” rating on the stock and cut its price target to €85, citing concerns over the 2026 EBITDA forecast. Deutsche Bank is more bullish with a “Buy” rating and a €101 target, while Barclays sits in the middle at “Neutral” with a €95 price objective, pointing to a seasonally weak start to the year.
Should investors sell immediately? Or is it worth buying Hensoldt?
Thales miss steps on a strong day
Market sentiment turned sour on Thursday after French rival Thales posted first-quarter order intake of €4.65 billion — an adjusted increase of roughly 27 percent — yet saw its shares fall nearly four percent in Paris. Defence orders alone jumped from €1.31 billion to €2.24 billion. Strong numbers, but they failed to convince investors.
Hensoldt was caught in the downdraft. The shares traded at €75.88, down about 2.6 percent on the day, and have lost nearly six percent over the past seven sessions. The stock now sits just below its 50-day moving average, and roughly a third below its 52-week high of €115.10. Despite the recent weakness, the shares are still up nearly 24 percent over the past twelve months.
Q1 test looms in May
The first real earnings test arrives on 6 May, when Hensoldt reports first-quarter results. The consensus forecast calls for revenue of around €493 million, a jump of nearly 25 percent year-on-year. Seasonally, the company typically starts the year with a loss; analysts expect a loss per share of €0.16, an improvement from the prior year.
The focus will be on how quickly Hensoldt can chip away at its record order mountain. Progress on delivery efficiency could ease the pressure on the stock. On 22 May, shareholders will vote on a proposed dividend of €0.55 per share, a ten percent increase from last year.
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