
- Thales has raised its forecast for organic sales growth in 2025 to a range of 6% to 7%, up from the previous 5% to 6% estimate.
- The company anticipates overall sales between EU21.8 billion to EU22 billion, slightly higher than the previous forecast range of EU21.7 billion to EU21.9 billion.
- Thales maintains its projected EBIT margin between 12.2% and 12.4%, with the estimate at 12.4%.
- The book-to-bill ratio is expected to remain above 1, with an estimate of 1.13.
- First half results show an EBIT of EU1.25 billion, marking a 14% year-on-year increase, surpassing the estimate of EU1.23 billion.
- Aerospace EBIT reached EU252 million, a 51% year-on-year increase, against an estimate of EU232.1 million.
- Defense EBIT stood at EU720 million, up 13% year-on-year but slightly below an estimate of EU725.7 million.
- Cyber & Digital EBIT fell by 2.6% year-on-year to EU265 million, marginally below the estimate of EU265.5 million.
- Overall EBIT margin increased to 12.2% from 11.5% year-on-year, surpassing the estimate of 11.8%.
- Organic EBIT rose by 12.7%, with sales reaching EU10.27 billion, reflecting an 8.1% year-on-year increase, slightly below the estimate of EU10.39 billion.
- Adjusted net income improved by 1.3% year-on-year to EU877 million, exceeding the estimate of EU857 million.
- Free operating cash flow turned positive at EU499 million, compared to a negative EU85 million year-on-year.
- The order book reached EU50.04 billion, a 6.6% rise year-on-year.
- Net debt at the period’s end was EU3.43 billion, a 25% decrease year-on-year.
- The book-to-bill ratio slightly decreased to 1.01, down 11% year-on-year.
- Second quarter organic sales grew by 6.4%, below the estimate of 8.06%.
- Sales in the second quarter totalled EU5.31 billion, a 4.6% rise year-on-year, under the estimate of EU5.41 billion.
- Aerospace sales were EU1.42 billion, up 1.2% year-on-year, below the estimate of EU1.48 billion.
- Defense sales reached EU2.90 billion, marking a 10% year-on-year increase, aligning with estimates.
- Cyber & Digital sales declined by 5.7% year-on-year to EU959 million, below the estimate of EU1.04 billion.
- Order intake rose significantly by 15% year-on-year to EU6.57 billion, with organic orders up by 17%.
- CEO Caine remarked on the strong momentum in order intake against favorable business conditions.
- Order intake is expected to surpass the 2025 sales.
- 2025 guidance considers reciprocal tariffs of 10% from Europe and 25% from Mexico, excluding any European retaliatory measures.
Thales SA on Smartkarma
Thales SA has attracted attention from analysts on Smartkarma, a platform where independent analysts publish research reports. Baptist Research recently released a report titled “Thales SA: Initiation of Coverage- Strategic Gains in Defense.” The report highlighted Thales’ strong full-year 2024 earnings and emphasized the company’s focus on enhancing its global technology leadership in Defence, Aerospace, Cyber, and Digital sectors. Baptist Research aims to assess various factors that could impact the company’s stock price in the near future, conducting an independent valuation using a Discounted Cash Flow methodology.
A look at Thales SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Thales SA, a company known for manufacturing aerospace systems and industrial electronics products, has received a mixed bag of Smart Scores indicating its long-term outlook. With a momentum score of 5, Thales is showing strong performance trends. Its growth and resilience scores are also relatively positive, standing at 3 each. However, the company’s values and dividend scores are rated at 2, suggesting room for improvement in these areas. Thales serves both civilian and military markets with a wide range of products including radar systems, optronics, air traffic management systems, and semiconductors.
In summary, Thales SA‘s Smart Scores highlight a company with strong momentum and a promising growth trajectory. While its values and dividend scores are rated lower, the overall outlook for Thales indicates a company with potential in the long term. With a diversified product offering catering to both civilian and military markets, Thales is positioned to capitalize on its strengths and further enhance its performance in the future.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
π‘ Before itβs here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- β Unlimited Research Summaries
- β Personalised Alerts
- β Custom Watchlists
- β Company Analytics and News
- β Events & Webinars