Hensoldt (XTRA:HAG) Advances PEGASUS Integration Milestone Is Its EW Role Reaching a New Phase?

• Hensoldt, Lufthansa Technik Defense and Bombardier Defense recently reached a key PEGASUS programme milestone as the first Global 6000 surveillance aircraft arrived in Germany, moving the project into the mission system integration and certification phase for the Bundeswehr’s airborne signals intelligence capability.
• The new phase cements Hensoldt’s role as overall system contractor and core sensor integrator, reinforcing its position at the heart of Germany’s high-end electronic warfare infrastructure build-out.
• We’ll now examine how this PEGASUS integration milestone, alongside the long-term radar supply deal with Rheinmetall, shapes Hensoldt’s investment narrative.

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Hensoldt Investment Narrative Recap

To own Hensoldt, you need to believe in enduring European demand for high‑end sensors and electronic warfare, and in Hensoldt’s ability to convert its strong order pipeline into profitable growth despite recent losses. The PEGASUS aircraft arrival looks more like a confirmation of execution progress than a material new short term catalyst, while the main near term risk remains that elevated defense budget expectations or large, complex programmes fail to translate into the revenue and margins implied by current valuations.

The recent long term radar framework agreement with Rheinmetall’s air defense division is particularly relevant here, as it underlines Hensoldt’s embedded role in Germany’s air defense build out alongside PEGASUS. Together, these programmes highlight both the support for current revenue guidance of €2.5 billion to €2.6 billion for 2025 and the execution and budget risks investors need to watch as Hensoldt scales up multi‑year delivery commitments.

Yet investors should be aware that if expanded facilities and programme commitments run ahead of actual funded demand, then...

Read the full narrative on Hensoldt (it's free!)

Hensoldt's narrative projects €3.8 billion revenue and €353.8 million earnings by 2028.

Uncover how Hensoldt's forecasts yield a €93.36 fair value, a 28% upside to its current price.

Exploring Other Perspectives

Twelve Simply Wall St Community fair value estimates for Hensoldt range from €70 to €129.83, showing wide dispersion in perceived upside. Against that, investors need to weigh execution risks around Hensoldt’s planned operational scale‑up and PEGASUS‑style programme delivery and consider how different outcomes could affect future returns.

Explore 12 other fair value estimates on Hensoldt - why the stock might be worth as much as 78% more than the current price!

Build Your Own Hensoldt Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hensoldt research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Hensoldt research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hensoldt's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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