France · Delayed Price · Currency is EUR Thales Earnings Call Transcripts
Fiscal Year 2026
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Order intake and sales grew strongly in H1 2026, led by defense and space, with robust profitability and exceptional free cash flow. Guidance for 2026 was upgraded, with higher book-to-bill and cash conversion targets, and strong momentum expected to continue, especially in defense and aerospace.
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The acquisition will expand capabilities in maritime robotics and inertial navigation, targeting €500 million in revenue synergies and €60 million in cost savings by 2030. Integration is expected to be smooth, with regulatory approvals anticipated by Q3 2027.
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Q1 2026 delivered strong organic growth in sales and order intake, led by defence and supported by robust demand in Europe and the Middle East. Guidance for 2026 is confirmed, with high single-digit defence growth expected and ongoing vigilance on supply chain and geopolitical risks.
Fiscal Year 2025
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Record order intake, strong sales and profitability growth, and robust free cash flow marked 2025, with all financial targets met or exceeded. Strategic advances in AI, space, and defense position the group for continued growth, with 2026 guidance reaffirming confidence in high single-digit defense growth and ongoing margin expansion.
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Q3 2025 saw strong order intake and sales growth, especially in defense and aerospace, with robust contract wins and innovation in cybersecurity. Guidance for 2025 is confirmed, though cyber segment recovery is slower than expected and supply chain risks persist.
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H1 2025 saw robust organic sales and order growth, led by Defense and Avionics, with sharply higher EBIT margin and strong cash flow. Guidance for 2025 was upgraded on defense momentum, while Cyber is expected to recover in H2 after integration disruptions.
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Q1 2025 delivered strong 9.9% organic sales growth, led by defense and avionics, despite a 27% drop in order intake due to a tough comparison base. Guidance for 2025 is reaffirmed, with sales expected to grow 5%-6% and adjusted EBIT margin at 12.2%-12.4%.
Fiscal Year 2024
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Record order intake and strong organic sales growth in 2024 drove double-digit EBIT and net income increases, with robust cash flow and a proposed 9% dividend hike. Defense led growth, while aerospace and cyber/digital segments also contributed, and space is targeted for profitability recovery.
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A five-year plan targets €25B+ revenue and 13–14% EBIT margin by 2028, driven by premiumization, tech investment, and a refined portfolio. Defense, avionics, space, and cyber/digital units each have tailored growth and margin goals, with robust backlog and recurring revenues supporting long-term visibility.
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Order intake rose 23% and sales grew 6.2% organically over nine months, driven by strong defense and security momentum and robust avionics. Guidance for 2024 is confirmed, with EBIT margin expected at 11.7–11.8% and sales growth of 5–6%.
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Order intake and sales grew strongly in H1 2024, with record backlog and improved EBIT margin. Guidance for organic sales growth and EBIT margin was raised, despite supply chain challenges and a negative outlook for Space EBIT in 2024, offset by strong Avionics and Defense performance.