Interim report
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Quarterly release of HENSOLDT AG for the first nine months of 2025 This English report is for convenience only. In case of discrepancies between the English and the German report, the German report shall prevail.
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A Earnings release ---------------------------------------------------------------------------------------------------------------------------------------------------------------- 1 Business development and key events Germany’s security policy environment continues to be marked by numerous crises and conflicts a round the world, and these are becoming increasingly complex and volatile. The growing tensions between th e United States and Europe raise questions not only concerning bilateral relations, but also the entire internation al order. This presents Germany, Europe and the North Atlantic Alliance with major challenges. As a result, both natio nal and European actors are determined to strengthen defence capabilities and respond to the current security p olicy challenges faced. The ongoing investment in the security and defence industry will not only provide assurance of opera tional readiness, but also open up significant business opportunities for HENSOLDT (hereinafter also referred to as “HENSOLDT” or “the Group”) in the European market. In this dynamic environment, HENSOLDT’s operating performance in the first nine months of 2 025 continued to show positive development and again recorded strong order intake. The € 2,017 millio n overall order volume surpassed the already high € 1,856 million order intake for the previous year period by 8.6 %. The main drivers were orders under extended contracts for Eurofighter Mk1 radars and further orders for TRML-4D radars to su pport Ukraine. Revenue, which once again included significantly lower revenue from pass-through business compare d to the previous year period, was up by 11.5 % (€ 1,536 million; previous year: € 1,377 million) year-on-yea r. The main reason for this increased revenue growth in the first nine months of 2025 was the positive develop ment in both the Sensors and Optronics segments. Adjusted EBITDA was € 211 million, 12.6 % above the previous yea r period’s figure of € 187 million. Both segments saw their adjusted EBITDA increase, mainly due to increased revenu e volumes. The negative effect on the Sensors segment’s adjusted EBITDA margin in the first half of 2025, caused by the ramp up phase of the new logistics centre, lessened from the second quarter of 2025. In April 2025, HENSOLDT successfully completed the realignment of its financing structure, and through a comprehensive refinancing programme took a decisive step towards further financial indepe ndence and flexibility. Under this refinancing, HENSOLDT has replaced the previous financing arrangement with an u nsecured, flexible corporate financing structure. The previous term loan and term facility totalling € 1,070 million and the € 370 million revolving credit facility have been replaced by a new syndicated loan agreement. This new syndicated agreement includes a € 850 million term loan, a € 150 million bridging loan and a new revolving credit facility of € 400 million. The new financing arrangement made improvements in all aspects of the financial conditions. A guarantee line of € 400 million was also agreed with the banking syndicate. The optimised capital structure provides for a more stable interest burden in the long term, while creating additional corporate leeway for swifter strategic decision-making independe nt of external capital providers. HENSOLDT entered into strategic cooperation with Munich-based defence tech startup Qua ntum Systems GmbH in April 2025. This partnership is linked to HENSOLDT having acquired 1.6 % of the sha res in Quantum Systems GmbH and sets the foundation for closer collaboration in the area of Software-Defined De fence (SDD). The partnership combines HENSOLDT’s extensive expertise in sensor data fusion, sensor resource management and data management, and in distributed systems with Quantum Systems’ cutting-edge unmanned ae rial systems (UAS) and software capabilities. Together, the companies aim to accelerate the development and deployment of interoperable, multi-domain defence capabilities. HENSOLDT AG held its general meeting on 27 May 2025. It was decided to pay a dividend of € 0.50 per share (total amount of € 58 million) to the shareholders of HENSOLDT AG for the fiscal year 2024. In July 2025, a promissory note loan in the amount of € 300 million was issued a s part of the comprehensive refinancing programme initiated in April 2025. The loan consists of € 65 million with a three-yea r term at fixed and variable interest rates, a further € 150 million with a five-year term at fixed and variable interest rates an d € 85 million with a seven-year term at fixed interest rates. The promissory note loan replaced the € 150 million bridging loan. Quarterly release for the first nine months of 2025 1
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2 Economic conditions General economic conditions In its autumn forecast published in October, the International Monetary Fund (IMF) revised its growth expectations upwards for the global economy in 2025 - despite the ongoing trade conflicts a nd uncertainties. The main reason stated by the IMF for this adjustment was that the trade policy measures adopted by the US we re having less of a negative impact than initially assumed. Based on the current outlook, global economic growth of 3.2 % is expected for the current year, while a 3.1 % increase is forecast for 2026. Back in 2024, the IMF had pred icted growth of 3.3 % for 2025, but lowered this projection to 3.0 % in July. The outlook for 2026 remained unchang ed. Despite the modest upward correction, the global economic situation remains tense, particularly given the continuing u ncertainty around the trade disputes between the US and China. The IMF has warned that any escalation of th is conflict could have a major negative impact on global growth and it is therefore emphasising the need to mo nitor potential risks and implement appropriate measures to safeguard global economic stability. The International Monetary Fund has also revised its projections moderately upwards for th e eurozone. This improvement is mainly attributed to the fact that the member states' goods exports have rema ined stable thanks to stronger trading within Europe, although exports to the US have fallen significantly. The IMF now anticipates economic growth of 1.2 % in the eurozone in 2025, compared to its July forecast of 1.0 %. For 2026, the IMF projects 1.1% growth, slightly below the 1.2 % forecast in July. Another factor behind this development is the continued lack of clear, transparent and lasting agreements between trading partners as a result of the US tariffs. Trade policy uncertainty therefore remains high and continues to weigh on the economic outlook for the eurozone. The German government's autumn forecast published on 8 October 2025 predicts 0.2 % economic growth for Germany in the current year. For 2026, the government expects the economy to recover slightly and forecasts an upturn in gross domestic product (GDP) of 1.3 %, followed by growth of 1.4 % in 2027. Unlike previous up swings, this recovery will not come from a revival in exports, instead stemming primarily from substantial government investment in infrastructure and defence. The IMF shares the German government’s forecast for the current year. For 202 6, however, IMF’s experts appear more pessimistic than Germany's economists given Germany's high reliance on exports an d the ongoing uncertainties in global trade, forecasting GDP growth of 0.9 %. The inflation rate is expe cted to remain stable in 2025 at 2.1 %. Conditions in the defence and security sector The security environment for Germany, the EU and NATO remains marked by ongoing glo bal tensions. Continuing to dominate the geopolitical agenda are Russia’s war of aggression against Ukraine, th e strategic rivalry between the US and China, and continuing escalations in other regions. In addition, hybrid threats, large-scale and targeted cyber attacks alongside disinformation campaigns pose a continual challenge to the resilience of critical infrastructures and social cohesion. These developments highlight the growing importance of the ability to act in terms of security policy and at the same time are driving extensive investment in military capabilities, technological sovereignty and the resilience of critical infrastructures. Against this background, at its summit in The Hague in June 2025, NATO committed to o ne of the most substantial increases in defence spending to date. The alliance now expects member states to g radually increase their spending to 5 % of their GDP annually by 2035, with 3.5 % to go on core defence spendin g and up to 1.5 % on defence-related infrastructure, resilience measures along with investment in innovation and industry. An inte rim review is planned for 2029. This commitment is designed to strengthen the alliance's ability to maintain core military capabilities while funding innovative and resilient infrastructures. Continued support for Ukraine will remain a key factor of security cooperation and the o ngoing development of joint defence initiatives. At the Ukraine Defence Contact Group meeting in Brussels on 15 Octob er 2025, German Defence Minister Pistorius and his counterparts reaffirmed their commitment to continued military assistance. Parallel to these efforts, the European Union is stepping up its activities aimed at stre ngthening European defence and procurement capabilities. The ‘SAFE’ (Security Action for Europe) loan instrument has esta blished a financing package of up to € 150 billion, enabling member states to obtain long-term and favoura ble loans for joint procurements. To complement this, the EU’s ‘ReArm Europe/Readiness 2030’ strategy aims to mobilise a cumula tive total of up to € 800 billion for defence purposes by 2030. This is to be achieved through a combina tion of SAFE loans, financing by the European Investment Bank, reallocation of unused EU funds and mobilisation of p rivate capital. Both initiatives aim to utilise economies of scale, promote interoperable procurement and strengthen Europe an supply chains. Consequently, the programmes not only strengthen the industrial base, but also open up new access to EU funding instruments for defence companies. Quarterly release for the first nine months of 2025 3
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Germany is pushing ahead with strengthening its defence capabilities. For the 2025 fiscal year it has a budget of over € 86 billion, which includes € 62.4 billion from its regular defence budget and a further € 24.1 billion from the Bundeswehr Special Fund. The defence budget is incorporated into a new medium-term financial plan, which has already allocated € 109 billion for 2026 and earmarked an annual increase to € 153 billion by 2029, equating to around 3.5 % of GDP. This development stems from the government’s adoption in March 2025 of a reform to its ‘d ebt brake’ rule, allowing defence spending to exceed 1 % of GDP in addition to regular borrowing. Numerous new procurement projects and ongoing investments underline the momentum e vident in the defence sector. Since the German federal budget for 2025 was passed in September, numerou s € 25-million proposals have already received approval from the budget committee. A total of over 150 proposals are set to be passed between September 2025 and December 2026, many of which will involve HENSOLDT. The new German Plann ing and Procurement Acceleration Act (BwPBBG) is designed to get equipment and material to troops more rapidly in future; the law is due to become effective at the start of 2026 and aims to further enhance the operational readiness of the armed forces. Alongside investing in equipment, Germany is also prioritising a significant increase in perso nnel resources: from 2025, up to 10,000 additional active soldiers and over 1,000 new civilian roles are pla nned. In the medium term, the German Bundeswehr is due to expand to 260,000 active servicewomen and servicemen and 200,000 reservists by 2035 in order to meet the increasing requirements of the NATO capability goals. These developments present considerable opportunities for HENSOLDT. 3 Results of operations Order intake, revenue, book-to-bill ratio and order backlog Order intake Revenue Book-to-bill Order backlog First nine months First nine months First nine months 30 Sep. 31 Dec. in € million 2025 2024 % Delta 2025 2024 % Delta 2025 2024 Delta 2025 2024 % Delta Sensors 1,703 1,603 6.3 % 1,317 1,205 9.3 % 1.3x 1.3x 0.0x 5,831 5,463 6.7 % Optronics 328 297 10.4 % 232 182 27.5 % 1.4x 1.6x -0.2x 1,307 1,225 6.7 % Elimination/ Transversal/ Others -15 -44 -14 -10 -41 -44 HENSOLDT 2,017 1,856 8.6 % 1,536 1,377 11.5 % 1.3x 1.3x 0.0x 7,096 6,644 6.8 % At the start of fiscal year 2025, a new division reporting structure was rolled out within th e two unchanged Sensors and Optronics segments. The new division structure consists of four divisions. The product area include s the two divisions “Radar Electromagnetic Warfare” (REW) and “Optronics”. The “Multi Domain Solutions” (MDS) division consists of systems or complete solutions with the former ESG division and the former “Spectrum Dominance & Airborne Solutions” division. The service area is covered by the “Services & Training” division. The figures for the first nine months of fiscal year 2024 include the activities of the acquired ESG Group starting from the second quarter of 2024 in the Sensors segment. Quarterly release for the first nine months of 2025 4
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Order intake ▪ Sensors: Order intake in the Sensors segment for the first nine months of 2025 totalled € 1,703 million, 6.3 % higher than the previous year period. Order intake was driven in particular by orders und er extended contracts for Eurofighter Mk1 radars and further orders in the REW division for TRML-4D radars and Spexer radars to support Ukraine. The previous year period mainly included orders for the short range and ve ry short range air defence system (LVS NNbS) as well as orders for TRML-4D radars to support Ukraine and also as part of the European Sky Shield Initiative (ESSI) for Latvia and Slovenia. ▪ Optronics: Order intake in the Optronics segment totalled € 328 million in the first nine months o f 2025, a 10.4 % increase on the previous year period (€ 297 million). This increase was mainly attributable to a significant rise in order intake in the Naval product line including orders for optronic systems for the U212 A class submarines and additional optronic systems in the Ground Based Systems (GBS) product line. The previous year contained orders relating to the Final Focus Metrology (FFM) system, the laser rangefinder for the M1 Abrams ba ttle tanks and an order for the LVS NNbS project. Revenue ▪ Sensors : At € 1,317 million for the first nine months of 2025, revenue was significantly highe r than for the same period the previous year (€ 1,205 million), representing an increase of 9.3 % or € 112 million. The main driver of this uplift was further growth in core business. Another contributor was the revenue from the ESG Group’s business activities in the MDS division. As expected, pass-through revenue decreased due to the ongoing execution of the key projects. ▪ Optronics : The significant 27.5 % increase in revenue to € 232 million in the first nine mon ths of 2025 compared to the previous year period resulted mainly from the positive performance of both the GBS product line and the service business of the German unit. Book-to-bill ratio1 ▪ Sensors: As in the previous year period, the Sensors segment achieved a high book-to-bill ratio of 1.3x. ▪ Optronics : At 1.4x, the book-to-bill ratio for this segment was below the 1.6x recorded in the previous year period. Despite an increase in order intake, the significant rise in revenue led to a lower b ook-to-bill ratio compared to the previous year. Order backlog ▪ Sensors: Due to the high level of order intake, especially in the REW division, the order b acklog increased by 6.7 % to € 5,831 million as per 30 September 2025 compared to year-end 2024. ▪ Optronics: The order backlog increased by 6.7 % to € 1,307 million compared to year-end 2024, primarily due to order intake in the Naval and Airborne Optronics product lines. Quarterly release for the first nine months of 2025 5 1 Defined as ratio of order intake to revenue in the relevant reporting period.
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Income Profit Profit margin 1 First nine months First nine months in € million 2025 2024 % Delta 2025 2024 Adjusted EBITDA Sensors 199 194 2.5 % 15.1 % 16.1 % Adjusted EBITDA Optronics 12 -7 >200.0 % 5.1 % -3.7 % Adjusted EBITDA 211 187 12.6 % 13.7 % 13.6 % Depreciation and amortisation -130 -109 -19.2 % Special items2 -32 -37 13.9 % Earnings before financial result and income taxes (EBIT) 48 41 18.8 % 3.2 % 3.0 % Financial result -78 -48 -60.4 % Income taxes -3 -40 91.3 % Group profit / loss -33 -48 31.4 % -2.1 % -3.5 % Earnings per share (in €; basic/diluted) -0.26 -0.40 35.0 % 1 The profit margins are calculated in relation to the corresponding revenue. 2 Special items are “non-regularly recurring and extraordinary” effects. Adjusted EBITDA ▪ Sensors: Adjusted EBITDA increased by 2.5% in the first nine months of 2025 compared to the previous year period, primarily due to an increase in revenue volume, which included higher revenue in the core business as well as lower pass-through revenue from the key projects compared to the previous year period. This positive result was achieved despite the temporary drop in productivity in the first half of the year caused by the commissioning of the new logistics centre. Positive effects on adjusted EBITDA also resulted from the contribution from th e ESG Group in the MDS division, although these were offset by a negative project mix in the REW division. ▪ Optronics: Adjusted EBITDA improved significantly compared to the previous year period, especially in the German unit. This increase is explained primarily by volume effects attributable to increased produ ction as well as lower operating and other expenses. This trend was partially offset by project mix effects and expenses in connection with the new site in Oberkochen. Earnings before financial result and income taxes (EBIT) In addition to the effects on adjusted EBITDA described above, EBIT includes th e following effects of depreciation and amortisation as well as special items. ▪ Depreciation and amortisation: Depreciation and amortisation increased primarily in response to higher amortisation resulting from the recognition of right-of-use assets for real-estate leasing contracts for the n ew site in the Optronics segment and also due to capitalised development costs. ▪ Special items2: Compared to the previous year period, the decrease in special items is mainly the resu lt of reduced expenditures for consulting services and transaction costs incurred in connection with the a cquisition and integration of the ESG Group as well as lower expenses for the new logistics centre put into ope ration in fiscal year 2024 and the related introduction of an IT merchandise management system. The increased OneSAPnow-related expenditures relating to the business transformation for SAP S/4HANA had an offsetting effect h ere, as did the expenses relating to moving over to the new site in Oberkochen. Group profit / loss The Group profit / loss is calculated as shown above from the adjusted EBITDA, deprecia tion and amortisation, special items, the financial result and income taxes. Quarterly release for the first nine months of 2025 6 2 Defined as “transaction costs, effects on earnings from purchase price allocations, OneSAPnow-related special items as well as other special items”.
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▪ Financial result : The increase in the negative financial result was primarily due to expenses incurred re lating to foreign currency effects and from the valuation of currency forwards on the reporting d ate. In addition, higher interest expenses were incurred due to the recognition of leases and, compared to the previous year period, lower interest income was generated by financial investments. As a result of the new refinancing arrangement, additional expenses were incurred for the repayment of the replaced loans; however, these were almost e ntirely offset by lower interest expenses for the new term loans. In the previous year period, gains from the valuatio n of interest rate swap transactions were reported, for which expenses now had to be recognised. ▪ Income taxes : The decrease in income tax expenses compared to the previous year period is rela ted mainly to the adjustment in deferred taxes, including loss carryforwards, in the first nine months of 2025. On 11 July 2025, the German Bundesrat passed the law for an immediate tax investme nt programme to strengthen Germany as a business location. As of this date, this law must be taken into account in all financial statements. Among other things, the law provides for a reduction in the corporate tax rate from its current 15 % to 10 %. The reduction will be phased in from 2028 through to 2031, with the corporate tax rate decreasing by 1 percentage point annually over this period. This has resulted in a revaluation of capitalised deferred tax assets. Deferred tax assets have been devalued to a greater extent than deferred tax liabilities, resulting in a deferred tax expense of € 1 million. Earnings per share Earnings per share improved from € -0.40 to € -0.26 compared to the previous ye ar, mainly due to the higher EBITDA and lower income taxes. Quarterly release for the first nine months of 2025 7
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4 Assets, liabilities and financial position Net assets and financial position3 30 Sep. 31 Dec. in € million 2025 2024 % Delta Non-current assets 2,494 2,289 9.0 % thereof Right-of-use assets 386 249 54.7 % Current assets 2,480 2,407 3.0 % thereof Inventories 935 719 30.0 % thereof Contract assets 508 385 31.9 % thereof Trade receivables 331 426 -22.2 % thereof Cash and cash equivalents 504 733 -31.3 % Total assets 4,974 4,696 5.9 % Equity 853 886 -3.7 % thereof Capital reserve 439 474 -7.4 % thereof Other reserves 97 37 162.5 % thereof Retained earnings 191 245 -22.1 % Non-current liabilities 2,090 1,927 8.4 % thereof Non-current provisions 348 418 -16.6 % thereof Non-current financing liabilities 1,157 1,072 7.9 % thereof Non-current lease liabilities 391 256 52.4 % Current liabilities 2,031 1,883 7.9 % thereof Current contract liabilities 968 776 24.8 % thereof Current other financial liabilities 104 74 41.3 % Total equity and liabilities 4,974 4,696 5.9 % Total assets ▪ Non-current assets : The increase in non-current assets by € 205 million to € 2,494 million is largely du e to the first- time recognition of right-of-use assets for real-estate lease contracts for the new site leased by HENSOLDT in the Optronics segment. It is envisaged that the new site in Oberkochen will pave the way for th e entity's planned growth and afford maximum flexibility for current and future production models in the manufacturin g process as well as efficient and effective work in all areas. ▪ Current assets: The rise in current assets by € 73 million was primarily due to the increase in inventorie s to secure and scale up production, the increase in contract assets resulting in part through th e PEGASUS key project as well as through the production of TRML-4D radars in the first nine months of 2025. This wa s offset by the reduction in cash and cash equivalents. This change is largely the result of negative free cash flo w of € 218 million which was impacted by cash outflows for investments in working capital. Cash outflows of € 200 million are recognised for the repayment of existing loans as part of the finalised refinancing arrangements. In add ition, a dividend was paid out to shareholders of HENSOLDT AG for fiscal year 2024 in the amount of € 58 million. This wa s offset by the issuing of a promissory note loan in July 2025, which generated cash inflows of € 300 million. In addition, in keeping with the customary seasonal trend, trade receivables decreased. Quarterly release for the first nine months of 2025 8 3 Only significant changes to the Consolidated Statement of Financial Position are explained.
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Total equity and liabilities ▪ Equity: The decrease by € 33 million to € 853 million resulted in particular from the de crease in retained earnings following the dividend payment of € 58 million as well as from the net loss attributable to shareholders of HENSOLDT AG amounting to € 30 million for the reporting period. The € 60 million increase in other reserves is mainly due to the actuarial adjustments of provisions for post-employment benefits, as well as the increase in pla n assets. An amount of € 35 million was also withdrawn from the capital reserve and transferred to retained earnings. ▪ Non-current liabilities : The increase in non-current liabilities by € 163 million to € 2,090 million is mainly du e to the new financing structure finalised in April 2025. This resulted in the previous term loan and term facility totalling € 1,070 million being replaced by a new term loan with a nominal value of € 85 0 million. A promissory note loan amounting to € 300 million was also issued in July 2025. In addition, lease liabilitie s increased as a result of the real- estate leasing contracts for the new Oberkochen site. An offsetting effect resulted from n on-current provisions decreasing, particularly due to lower provisions for retirement benefits as a result of interest-ra te increases and higher plan assets. ▪ Current liabilities: The increase in current liabilities by € 148 million to € 2,031 million is primarily due to the increase in current trade payables, mainly resulting from advance payments received for, among o ther things, TRML-4D radars. Other non-current financial liabilities also increased, related to a payment services agreement concluded with a bank in the past fiscal year. Financial position First nine months in € million 2025 2024 Delta Cash flows from operating activities -55 -138 83 Cash flows from investing activities -162 -676 514 Free cash flow -218 -814 596 Transaction costs 0 11 -11 OneSAPnow-related special items 36 28 8 M&A activities1 28 574 -545 Other special items2 34 44 -10 Adjusted free cash flow -119 -157 38 Cash flows from financing activities -17 376 -393 1 Defined as sum of “Proceeds from sale of intangible assets and property, plant and equipment”, “Payments for inve stments in non-consolidated affiliates, joint ventures, associates, other investments and other non-current financial assets”, “Proceeds from disposa ls of non-consolidated affiliates, joint ventures, associates, other investments and non-current financial assets”, "Acquisition of subsidiaries less acquired cash and cash equivalents" as well as “Other cash flows from investing activities” as reported in the Consolidated Statement of Cash Flows. In addition, a compensation obligation paid in connection with the acqu isition of the ESG Group is recognised in operating cash flow in the first nine months 2024. 2 Other special items are “non-regularly recurring and exceptional” effects. Free cash flow ▪ Cash flows from operating activities : Negative cash flow from operating activities was below the previous year's figure and reflected, inter alia, cash outflows for investments in working capital to manage the planned business volume in the following quarters. In addition to investments in inventories, the decrease in trade payables was also contributing to negative cash flow. An offsetting effect resulted from cash inflows gene rated from the settlement of trade receivables and from advance payments received as well as from the change in contract balances relating to TRML-4D radars. ▪ Cash flows from investing activities: Cash outflows related in particular to investments in development projects, in the business transformation for SAP S/4HANA, in property, plant and equipment and th e shares acquired in Quantum Systems GmbH. The previous year period included in particular the purchase price payment for acquiring 100 % of the shares in the ESG Group. Quarterly release for the first nine months of 2025 9
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Adjusted free cash flow ▪ OneSAPnow-related special items: The higher cash outflows reflect increased investments explained by the progress of the business transformation for SAP S/4HANA. ▪ Other special items: Other special items primarily reflect cash outflows arising from the gradual process of occupying the new site in Oberkochen. Also included are cash outflows that resulted from consulting services relating to the acquisition and integration of the ESG Group, and payments relating to the new logistics centre put into operation in fiscal year 2024 and the associated introduction of an IT merchandise management system. Cash flows from financing activities Cash flows from financing activities in the first nine months of 2025 consist primarily of cash outflows resulting from the refinancing undertaken, the dividend payment to the shareholders of HENSOLDT AG and leasing agreements. The issuance of the promissory note loan resulted in corresponding cash inflow. The cash inflow in the previous year period relates to the drawdown of a loan to finance the purchase price for the acquisition of shares in the ESG Group. 5 Outlook Contrary to the outlook last updated in the 2025 semi-annual financial report, which forecasted a moderate increase in order intake for the Group, the forecast is now for a strong increase in order intake for fiscal year 2025 due to the unchanged high threat level and further procurement by the German federal go vernment. The Management Board’s operational planning for the Group anticipates strong revenue growth for fiscal year 2025, particularly due to the continued high order backlog. Overall, the management expects a book-to-bill ratio of 1.6x to 1.9x due to the increased expectations regarding order intake, up on the previously anticipated book-to-bill ratio of 1.2x. A strong increase in adjusted EBITDA is still expected for fiscal year 2025. The outlook is heavily dependent on the circumstances described in the opportunitie s and risks report and is based on the Group’s multi-year business plan as well as the aforementioned macroeconomic develo pments. The business plan was described in the combined management report of HENSOLDT AG for the fiscal year ended 31 December 2024. Overall, the Management Board is confident that HENSOLDT can build on the successful fiscal year 2024 and expects further positive development for fiscal year 2025. For the other key figures forecast besides order intake and the book-to-bill ratio, the outlook compared to the end of 2024 is confirmed. 6 Opportunities and risks The combined management report of HENSOLDT AG for the fiscal year ended 31 Dece mber 2024 describes the key elements of HENSOLDT’s risk and control management. The detailed explanations include accounting-related internal controls, risk management, certain risks that could have a negative impact on HENSOLDT as well as key opportunities. The acquisition of the shares in ESG GmbH is associated with various risks that may arise from bo th the integration as well as business operations. To counteract these potential risks, such as the loss of expe rtise in the ESG Group or reduced operational business, a structured integration process with various functional an d operational workstreams involving both sides is being implemented. HENSOLDT has to manage complex and long-running projects with high technical requirements and large volumes. The corresponding operational risks reported in the HENSOLDT AG combined management rep ort for the fiscal year ended 31 December 2024 remain essentially unchanged. The status of the key projects is regularly reported to the Supervisory Board. If necessary, external audits with different focal points will also be commissioned. Compared to the year-end 2024, HENSOLDT faces a moderately increasing risk for both segments in terms of the challenges on the labour market in attracting and retaining highly qualified techn ical personnel as well as qualified sales employees and competent managers. Expanding the workforce and streamlining interna l organisation are key pillars of HENSOLDT's North Star strategy. Quarterly release for the first nine months of 2025 10
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With the frequency of attempted attacks on IT networks around the world rising significan tly due to the continued deterioration of the geopolitical situation, particularly between Russia, the US, China and Europe, the likeliness of cyber- attacks succeeding is generally estimated to be higher than in the past. This heighte ned risk from cyber-attacks worldwide also applies to HENSOLDT. To counter this, HENSOLDT Group is constantly expandin g its cyber security measures. This includes expanding its cybersecurity team, increased budgeting, security monitorin g, a Group-wide security team, penetration testing and regular internal IT audits and external assessments. There are potential risks associated with both the new logistics centre and also the relo cation to and commissioning of the Oberkochen site, especially with regard to delays in the supply of materials for produ ction and resulting potential delays in the manufacturing process. To proactively address these risks, working groups with in -house and external experts have been set up. These teams develop and implement targeted measures to mitigate any possible delays in delivery early on and minimise their impact as far as possible. The forecasted significant increase in order intake and the associated time requisites rep resent a potential risk to HENSOLDT's delivery capability. To address these challenges, a transition to industrial manufa cturing, the introduction of even more efficient production processes, and optimized supplier management are necessary. The required expansion of production capacities may lead to temporary delays in the manufacturing processes. To ensure that HENSOLDT is able to sustainably manage the increased order intake over the long term and mitigate potential risks, HENSOLDT has launched an initiative to expand its production capacities a nd further industrialize the Group's key products.This project is supported by both internal and external experts. In tegrated and forward-looking planning is designed to identify and minimise potential risks at an early stage. These measures are of vital importance to HENSOLDT so that it can rapidly expand its production capacity, seize market opportunities and strengthen the resilience of its supply chain at a time of increasing industrial and geopolitical challenges. Specially established working and expert groups are working continuously to closely ana lyse and monitor both the potential further effects of the continuing deterioration in the geopolitical situation but also the opportunities that this could create for HENSOLDT. HENSOLDT continues to face the risk of possible supply constraints for materials and rising price s for specific components due to the changed situation and the availability of materials on the global market. The impacts from the supply chain situation have stabilised in both segments since the end of 2024. Nevertheless, close monitoring remains in place so that appropriate measures can be taken where necessary and also to e nable a response to any changes in the supply chain situation, such as China’s export restrictions on rare earths and germanium. These are analysed in a working group in order to be able to respond to the dynamic changes. Conflicts and developments at international, national, political and economic level, along with growing geopolitical tensions between the US, Europe, Russia and China, have the potential to bring about political changes with worldwide implications for import and export regulatory frameworks, trade agreements and tariffs. In view of the highly dynamic nature of present developments, particularly in the US, the effects of all this on the overall economic situation and HENSOLDT Group companies are currently impossible to predict and are being continuou sly analysed by HENSOLDT. The increase in defence budgets in European countries, including Germany, will en gender greater planning security and could also bolster corporate growth. For HENSOLDT, increasing military investments worldwide and a growing and steadily improving Eu ropean market environment offer opportunities in all dimensions of military production and in the nu merous technologies of the future. The implications of geopolitical developments, increases in defence budgets and expa nding military investments worldwide, NATO's priorities in its strategic concept and changes in the operational doctrines of armed forces, in tandem with advancements in defence technology, all present further opportunities for HENSOLDT . Rapid creation of comprehensive situation reports, mission-oriented distribution of information in a network of con nected sensors and effectors, and control of the electromagnetic spectrum are highly sought-after skills for which HE NSOLDT and its portfolio is extremely well positioned. The opportunity for diversification of its product range, th e expansion of its service business and HENSOLDT’s ability to act as an innovation leader within its industry are as promising as ever and will act as a multiplier. The Management Board currently assesses the overall opportunity and risk situation of HE NSOLDT as predominantly stable, and thus unchanged compared to year-end 2024. Quarterly release for the first nine months of 2025 11
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B Financial results ---------------------------------------------------------------------------------------------------------------------------------------------------------------- 1 Consolidated Income Statement First nine months in € million 2025 2024 Revenue 1,536 1,377 Cost of sales -1,258 -1,105 Gross profit 278 272 Selling and distribution expenses -99 -95 General administrative expenses -103 -112 Research and development costs -29 -26 Other operating income 24 13 Other operating expenses -20 -14 Share of profit / loss from investments accounted for using the equity method 3 3 Other income / expense from investments -5 -1 Earnings before financial result and income taxes (EBIT) 48 41 Interest income 17 24 Interest expense -80 -74 Other finance income / costs -14 2 Financial result -78 -48 Earnings before income taxes (EBT) -29 -8 Income taxes -3 -40 Group profit / loss -33 -48 thereof attributable to the owners of HENSOLDT AG -30 -46 thereof attributable to non-controlling interests -3 -2 Earnings per share Basic and diluted earnings per share (in €) -0.26 -0.40 Quarterly release for the first nine months of 2025 12
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2 Consolidated Statement of Comprehensive Income First nine months in € million 2025 2024 Group profit / loss -33 -48 Other comprehensive income Items that will not be reclassified to profit or loss Measurement of post-employment benefit plans / plan assets 85 -3 Tax on items that will not be reclassified to profit or loss -23 1 Subtotal 62 -2 Items that can be reclassified to profit or loss Difference from currency translation of financial statements of foreign companies -2 3 Subtotal -2 3 Other comprehensive income net of tax 60 0 Total comprehensive income 27 -47 thereof attributable to the owners of HENSOLDT AG 30 -47 thereof attributable to non-controlling interests -3 -1 Quarterly release for the first nine months of 2025 13
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3 Consolidated Statement of Financial Position ASSETS 30 Sep. 31 Dec. in € million 2025 2024 Non-current assets 2,494 2,289 Goodwill 1,117 1,115 Intangible assets 681 667 Property, plant and equipment 227 202 Right-of-use assets 386 249 Investments accounted for using the equity method 7 4 Other investments and non-current other financial investments 42 24 Non-current other financial assets 13 7 Non-current other assets 19 20 Deferred tax assets 3 1 Current assets 2,480 2,407 Non-current other financial investments, current portion – 0 Inventories 935 719 Contract assets 508 385 Trade receivables 331 426 Current other financial assets 28 8 Current other assets 155 115 Income tax receivables 19 20 Cash and cash equivalents 504 733 Total assets 4,974 4,696 Quarterly release for the first nine months of 2025 14
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EQUITY AND LIABILITIES 30 Sep. 31 Dec. in € million 2025 2024 Share capital 116 116 Capital reserve 439 474 Other reserves 97 37 Retained earnings 191 245 Equity held by shareholders of HENSOLDT AG 843 872 Non-controlling interests 10 14 Equity, total 853 886 Non-current liabilities 2,090 1,927 Non-current provisions 348 418 Non-current financing liabilities 1,157 1,072 Non-current contract liabilities – 4 Non-current lease liabilities 391 256 Non-current other financial liabilities 11 13 Non-current other liabilities 11 15 Deferred income 29 27 Deferred tax liabilities 143 123 Current liabilities 2,031 1,883 Current provisions 227 257 Current financing liabilities 15 22 Current contract liabilities 968 776 Current lease liabilities 31 25 Trade payables 509 546 Current other financial liabilities 104 74 Current other liabilities 158 151 Tax liabilities 19 33 Total equity and liabilities 4,974 4,696 Quarterly release for the first nine months of 2025 15
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4 Consolidated Statement of Cash Flows First nine months in € million 2025 2024 Group profit / loss -33 -48 Depreciation, amortisation and impairments of non-current assets 130 109 Impairments (+) / reversals of impairments (-) of inventories, trade receivables and contract assets -0 6 Share of profits in investments accounted for using the equity method -3 -3 Financial expenses (net) 54 41 Other non-cash expense / income 2 -0 Change in Provisions -15 -7 Inventories -224 -187 Contract balances 66 -47 Trade receivables 99 17 Trade payables -37 47 Other assets and liabilities -23 -58 Interest paid -56 -48 Interest received 7 17 Income tax expense (+) / income (-) 3 40 Income tax payments (-) / refunds (+) -26 -17 Cash flows from operating activities -55 -138 Acquisition / addition of intangible assets and property, plant and equipment -134 -131 Proceeds from sale of intangible assets and property, plant and equipment 1 2 Payments for investments in non-consolidated affiliates, joint ventures, associates, other investments and other non-current financial assets -24 -1 Proceeds from disposals of non-consolidated affiliates, joint ventures, associates, other investments and other non-current financial assets – -3 Acquisition of subsidiaries net of cash acquired -5 -543 Other -0 -0 Cash flows from investing activities -162 -676 Repayment from financing liabilities to banks -220 – Proceeds from financing liabilities to banks 300 450 Transaction costs paid from refinancing -5 -2 Change in other financing liabilities -8 -5 Payment of lease liabilities -25 -20 Dividend payments -58 -46 Transaction costs paid on issue of equity – -1 Other -0 -0 Cash flows from financing activities -17 376 Effects of changes in exchange rates on cash and cash equivalents 3 -3 Changes in cash and cash equivalents due to changes in the scope of consolidation 2 – Net changes in cash and cash equivalents -229 -442 Cash and cash equivalents Cash and cash equivalents on 1 January 733 802 Cash and cash equivalents on 30 September 504 360 Quarterly release for the first nine months of 2025 16
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5 Consolidated Statement of Changes in Equity Attributable to the owners of HENSOLDT AG Other reserves in € million Share capital Capital reserve Retained earnings Remea- surement of pensions Currency translation Subtotal Non- controlling interests Total As of 1 January 2025 116 474 245 56 -19 872 14 886 Group profit / loss – – -30 – – -30 -3 -33 Other comprehensive income – – – 62 -2 60 -0 60 Total comprehensive income – – -30 62 -2 30 -3 27 Release capital reserve – -35 35 – – – – – Dividend payments – – -58 – – -58 – -58 Other – – -1 – – -1 -0 -2 As of 30 September 2025 116 439 191 118 -21 843 11 853 Attributable to the owners of HENSOLDT AG Other reserves in € million Share capital Capital reserve Retained earnings Remea- surement of pensions Currency translation Subtotal Non- controlling interests Total As of 1 January 2024 116 613 62 52 -21 822 16 838 Group profit / loss – – -46 – – -46 -2 -48 Other comprehensive income – – – -2 2 -1 1 0 Total comprehensive income – – -46 -2 2 -47 -1 -47 Release capital reserve – -140 140 – – – – – Dividend payments – – -46 – – -46 – -46 Changes in the scope of consolidation – – -15 – – -15 – -15 Other – – -3 – – -3 – -3 As of 30 September 2024 116 473 92 50 -19 711 15 726 Quarterly release for the first nine months of 2025 17
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6 Segment information The Group comprises two operating segments, Sensors and Optronics. First nine months 2025 in € million Sensors Optronics Elimination/ Transversal/ Others Group Order intake 1,703 328 -15 2,017 Order backlog 5,831 1,307 -41 7,096 Book-to-bill-ratio 1.3x 1.4x 1.3x Segment revenue 1,317 232 -14 1,536 Revenue from external customers 1,313 223 – 1,536 Intersegment revenue 4 10 -14 – First nine months 2025 in € million Sensors Optronics Elimination/ Transversal/ Others Group Material non-cash items other than depreciation and amortisation: Additions to other provisions -73 -21 – -94 Reversals of other provisions 26 3 – 29 Share of profits or loss in investments accounted for using the equity method – 3 – 3 Quarterly release for the first nine months of 2025 18
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First nine months 2025 in € million Sensors Optronics Elimination/ Transversal/ Others Group EBITDA 190 6 -18 179 Transaction costs – – 0 0 OneSAPnow-related special items1 3 – 12 15 Other special items2 6 5 5 17 Adjusted EBITDA 199 12 – 211 Adjusted EBITDA margin3 15.1 % 5.1 % 13.7 % EBITDA 190 6 -18 179 Depreciation and amortisation -104 -23 -4 -130 EBIT 86 -16 -21 48 Effects on earnings from purchase price allocations 27 5 – 33 Transaction costs – – 0 0 OneSAPnow-related special items1 3 – 13 16 Other special items2 11 5 8 25 Adjusted EBIT 127 -6 – 122 Adjusted EBIT margin3 9.7 % -2.4 % 7.9 % 1 OneSAPnow-related special items include expenses associated with the business transformation for SAP S/4HANA. 2 Other special items mainly include expenses for moving to the new location in Oberkochen, expenses for consulting services incurred in connection with the acquisition and integration of the ESG Group as well as expenses for the new logistics centre put into operation in the 2024 fiscal year and the related introduction of an IT merchandise management system. 3 Based on segment revenues First nine months 2025 in € million Sensors Optronics Elimination/ Transversal/ Others Group EBIT 86 -16 -21 48 Financial result -78 EBT -29 First nine months 2024 in € million Sensors Optronics Elimination/ Transversal/ Others Group Order intake 1,603 297 -44 1,856 Order backlog 5,588 963 -38 6,513 Book-to-bill-ratio 1.3x 1.6x 1.3x Segment revenue 1,205 182 -10 1,377 Revenue from external customers 1,204 173 – 1,377 Intersegment revenue 1 9 -10 – Quarterly release for the first nine months of 2025 19
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First nine months 2024 in € million Sensors Optronics Elimination/ Transversal/ Others Group Material non-cash items other than depreciation and amortisation: Additions to other provisions -76 -32 – -108 Reversals of other provisions 15 6 – 21 Share of profits or loss in investments accounted for using the equity method – 3 – 3 First nine months 2024 in € million Sensors Optronics Elimination/ Transversal/ Others Group EBITDA 180 -8 -22 150 Transaction costs – – 3 3 OneSAPnow-related special items1 -0 0 7 6 Other special items2 14 1 12 28 Adjusted EBITDA 194 -7 – 187 Adjusted EBITDA margin3 16.1 % -3.7 % 13.6 % EBITDA 180 -8 -22 150 Depreciation and amortisation -95 -13 -1 -109 EBIT 85 -22 -22 41 Effects on earnings from purchase price allocations 28 3 – 32 Transaction costs – – 3 3 OneSAPnow-related special items1 -0 0 7 7 Other special items2 15 1 12 29 Adjusted EBIT 128 -17 – 111 Adjusted EBIT margin3 10.6 % -9.2 % 8.1 % 1 OneSAPnow-related special items include expenses associated with the business transformation for SAP S/4HANA. 2 Other special items include expenses for consulting services incurred in connection with the acquisition and integration of the ESG Group as well as in connection with setting up new infrastructure for HENSOLDT’s R&D, production and logistics, such as for relocations and initial setups. 3 Based on segment revenues. First nine months 2024 in € million Sensors Optronics Elimination/ Transversal/ Others Group EBIT 85 -22 -22 41 Financial result -48 EBT -8 Quarterly release for the first nine months of 2025 20
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7 Revenue The Group’s operations and major categories for revenue recognition are described in the Consolidated Financial Statements as at 31 December 2024. During the first nine months of 2025, revenue increased overall by € 158 million to € 1,536 million, compared to € 1,377 million in the first nine months of 2024. Revenue (geographical information) First nine months in € million 2025 20241 Europe 1,371 1,205 thereof Germany 1,060 810 Middle East 31 29 APAC 32 38 North America 47 32 Africa 45 71 LATAM 10 5 Other regions / consolidation – -2 Total 1,536 1,377 1 Adjusted allocation of previous year's figures Quarterly release for the first nine months of 2025 21
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C Legal information and contact ---------------------------------------------------------------------------------------------------------------------------------------------------------------- HENSOLDT AG Investor Relations Willy-Messerschmitt-Strasse 3 82024 Taufkirchen Germany Phone: +49 89 515 182 057 Email: investorrelations@hensoldt.net Management Board: Oliver Dörre (Chairman), Christian Ladurner and Dr. Lars Immisch Registry court: District court of Munich, HRB 258711 Disclaimer This report contains forecasts based on assumptions and estimates by the management o f HENSOLDT. These statements based on assumptions and estimates are in the form of forward-looking statemen ts using terms such as “believe”, “assume”, “expect” and the like. Even though the management believes that these assumptions and estimates are correct, it is possible that actual results in the future may deviate materially from such assumptions and estimates due to a variety of factors. The latter may include changes in the macroeconomic environ ment, in the statutory and regulatory framework in Germany and the EU, and changes within the industry. HENSOLDT does not provide any guarantee or accept any liability or responsibility for any divergence between future d evelopments and actual results, on the one hand, and the assumptions and estimates expressed in this report. HENSOLDT has no intention and undertakes no obligation to update forward-loo king statements in order to adjust them to actual events or developments occurring after the date of this report. The report is presented in euros (“€”), which is the Group’s functional currency. Unless oth erwise stated, all financial figures presented herein are rounded to the nearest million € in accordance with established commercial principles. Due to rounding, there may be slight deviations from the absolute numbers when forming totals and calculating percentages. Absolute amounts less than € 500,000 and greater than zero € are represe nted as 0 or -0 depending on the sign. In contrast, items that have no value are indicated as missing with “-”. This report is a quarterly statement in accordance with Sec. 53 of the Exchange Rules for the Frankfurter Wertpapierbörse, the Frankfurt Stock Exchange. This English report is for convenience purposes only. In case of discrepancies between the English and the German report, the German report shall prevail. Quarterly release for the first nine months of 2025 22