HAGHY - Hensoldt AG (HAGHY) Q1 2025 Earnings Call Transcript
2025-05-10 21:29:45 ET
Hensoldt AG (HAGHY)
Q1 2025 Earnings Conference Call
May 7, 2025 7:30 AM ET
Company Participants
Veronika Endres - Head, Investor Relations
Oliver Dorre - Chief Executive Officer
Christian Ladurner - Chief Executive Officer
Conference Call Participants
Ross Law - Morgan Stanley
Carlos Iranzo Peris - Bank of America
Sebastian Growe - BNP Paribas Exane
Christophe Menard - Deutsche Bank
Christian Cohrs - Warburg Research
Jan de Roklis - Oddo BHF
Presentation
Veronika Endres
Good afternoon, everybody, and welcome to Hensoldt's 3M 2025 Results Call. Thank you for joining us today. I'm Veronika Endres, Head of Investor Relations at Hensoldt and with me are our CEO, Oliver Dorre; and our CFO, Christian Ladurner. Oliver and Christian will guide you through this presentation today, which will be followed by a Q&A session.
And with that, I hand over to you, Oliver.
Veronika Endres
Well, thank you very much, Veronika, and a warm and cordial welcome to our valued investors and analysts covering the Hensoldt's stock. We are at a historic infliction point for defense and security markets and Hensoldt is exceptionally well positioned to lead this transformation.
In this first part of the presentation, I will give you an overview of the recent developments in the political and strategic landscape and how they will drive our business. Christian will then lead you through the details of the financial section and I will conclude with a first estimate on how rising defense budget will drive our order pipeline and revenue development towards 2030.
Tectonic shifts in geopolitics have again accelerated at an unprecedented pace recently. When we presented our strong full-year 2024 figures to you end of February, the speech of Vice President, Vance at the Munich Security Conference was still fresh on our minds and gave us a first indication of the potential watershed in transatlantic relations. The dispute at the White House and the initiative of the U.S. administration to end the war in Ukraine through unilateral negotiations with Russia excluding both Ukraine and Europe showed a dangerous clash of cultures in the western alliance and triggered a strong reaction, both in Germany and Europe.
Commission President, Von der Leyen announced the Rearm Europe initiative mobilizing up to EUR800 billion for security and defense. This clearly underlines the strong ambition that Europe will take responsibility for building a self-sufficient deterrence and defense capability. And even before the new government coalition has been sworn in, we have seen a fundamental shift in Germany's fiscal framework marking the beginning of a Zeitenwende 2.0 as we call it.
The German constitution has been amended to enable a multi-billion euro financing package dedicated to defense and infrastructure investments. Furthermore, defense spending exceeding 1% of the GDP is now exempt from the country's debt break restrictions. In principle, this means there is no formal upper limit to defense spending....
Hensoldt AG (HAGHY) Q1 2025 Earnings Call Transcript