Thales Reports Strong H1 Earnings, Exceeds Revenue Target.

Thales has reported a 14% increase in adjusted EBIT to €1.25bn and a 1% rise in adjusted net attributable income to €877m for H1 2025. Revenue increased 8.1% to €10.3bn, while orders fell 4% to €10.4bn. CEO Patrice Caine noted strong momentum in order intake, which is expected to exceed revenue in 2025. The company confirmed its full-year adjusted EBIT margin target of 12.2% to 12.4% and raised its organic revenue growth forecast to 6% to 7%.

French aerospace and defense company Thales (THLEF.PK) has reported robust financial results for the first half of 2025, with a 14% increase in adjusted EBIT to €1.25bn and a 1% rise in adjusted net attributable income to €877m. Revenue grew by 8.1% to €10.3bn, while orders declined by 4% to €10.4bn. CEO Patrice Caine highlighted the strong momentum in order intake, which is expected to exceed revenue in 2025. Thales confirmed its full-year adjusted EBIT margin target of 12.2% to 12.4% and raised its organic revenue growth forecast to 6% to 7% [1, 2].

The company's adjusted net income from continuing operations, Group share, grew by 6% to €664 million from prior year's €625 million. Adjusted net income, Group share, per share was €4.27, compared to €4.21 a year ago. Sales totaled €10.27 billion, reflecting an 8.1% year-on-year increase, driven notably by a solid performance in the Avionics and Defence segments [1].

Thales also maintained its projection for adjusted EBIT margin between 12.2% and 12.4% for fiscal 2025, with the estimate at 12.4%. The company now expects organic sales growth of 6% and 7%, corresponding to annual sales in the range of €21.8 billion to €22 billion, up from its previous estimate of 5% to 6% [1, 2].

The order book reached €50.04 billion, a 6.6% rise year-on-year, while net debt at the period’s end was €3.43 billion, a 25% decrease year-on-year. The book-to-bill ratio slightly decreased to 1.01, down 11% year-on-year [2].

In the second quarter, organic sales grew by 6.4%, with sales totaling €5.31 billion, a 4.6% rise year-on-year. Aerospace sales were €1.42 billion, up 1.2% year-on-year, while Defense sales reached €2.90 billion, marking a 10% year-on-year increase. Cyber & Digital sales declined by 5.7% year-on-year to €959 million [2].

Thales' strong performance in H1 2025 reflects the company's ability to navigate the current business environment and maintain its growth trajectory. The company's focus on organic growth and margin progression, particularly in the Aerospace segment, is expected to drive its financial performance in the coming quarters.

References:
[1] https://www.rttnews.com/3556132/thales-h1-profit-rises-orders-down-backs-fy25-margin-view-lifts-organic-sales-growth-target.aspx
[2] https://www.smartkarma.com/home/newswire/earnings-alerts/thales-sa-ho-earnings-increased-fy-organic-sales-forecast-amid-strong-growth-and-robust-order-intake/