Dassault Aviation: Soaring Backlog and Strong Financial Performance in 2024

Dassault Aviation, the French aerospace and defense giant, has reported strong financial results for the 2024 fiscal year, driven by the continued success of its Rafale fighter jet program. The company's backlog reached a new record of EUR 43.2 billion as of December 31, 2024, consisting of 299 aircraft (164 Export Rafale, 56 Rafale France, and 79 Falcon). This growth is primarily attributed to the commercial success of the Rafale, particularly the 30 Export Rafale ordered in 2024.

Net sales in 2024 amounted to EUR 6.2 billion, versus guidance in the range of EUR 6 billion. The company delivered 21 Rafale (14 France and 7 Export) and 31 Falcon aircraft, contributing to the strong financial performance. Adjusted operating income amounted to EUR 519 million, i.e., an operating margin of 8.3%. The record adjusted net income stood at EUR 1.1 billion, i.e., a net margin of 17.0%.

The international context in 2024 was marked by the war on Europe's doorstep and international tensions, as well as political instability in France. Despite these challenges, Dassault Aviation continued to ramp up production of the Rafale against a backdrop of persistent external and internal supply chain issues. The company implemented several strategies to mitigate these challenges, including participation in the French Aerospace Industries Association (GIFAS), investment funds dedicated to supporting the French aerospace supply chain, and internal monitoring to anticipate the risk of further supplier failures.

Dassault Aviation's success in the Rafale program is driven by several key factors, including the aircraft's operational qualities and continuous evolution, export success, a substantial backlog, production ramp-up, future standards and complementary systems, and the company's crucial role as an architect of complex systems. These factors contribute to the company's long-term growth prospects and strengthen its market position in the global defense industry.

As the company looks ahead, it is well-positioned to capitalize on the growing demand for advanced defense systems and continue its strong financial performance. Investors should keep a close eye on Dassault Aviation as it continues to execute on its strategic initiatives and deliver value to shareholders.