The Point for Europe

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The Point for Europe

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Monday, 03 August 2026

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European Equity Strategy - European Reporting Season: Upgrades, Delivery and

Dispersion Global Economic Outlook & Strategy -

While European 2Q26 earnings have largely met expectations, this follows an Renewed Uncertainties—But

Continued Resilienceunusually powerful pre-reporting upgrade cycle that had already raised the bar for

positive surprises. More importantly, the market response has been highly

discerning: Companies delivering earnings have been rewarded, while misses have

faced significant penalties. Encouragingly, earnings momentum remains positive

and increasingly broad-based, with both 2Q and 3Q growth expectations moving

higher and a wider set of sectors contributing to the recovery. Together with the

strong breadth of recent earnings upgrades, which has historically been

associated with further EPS revisions and stronger equity returns, this reinforces

our constructive view on European equities.

Beata M Manthey, Ph.D. | Nikhil N Jadhav, CFA | David Groman

Hensoldt (HAGG.DE) - Nice beat, especially at EBIT adj; FY guidance confirmed.

2x BtB bodes well for future growth

Q2 results: Orders €1,329m (8-9% ahead of consensuses), BtB ~2x, Sales €671m

(3-4% ahead), EBITDA €93m (2% ahead of company compiled consensus, 2%

behind Visible Alpha), EBIT adj €70m (10% ahead VA) and FCF outflow ( €41m),

considerably less than expectations, helped by customer advances with the orders

- details see Figure 1 below. FY guidance confirmed (BtB 1.5-2x, sales €2,750m,

18.5-19% EBITDA and 50% cash conversion of EBITDA to FCF ). Analyst call at 3pm

CET, 2pm UK.

Charles J Armitage