Thales, the French aerospace-and-defense company, exceeded analysts’ expectations with its first-half sales and earnings. This success was mainly driven by growth in its aerospace and defense as well as security businesses.
Sales and Earnings Highlights
Thales reported sales of 8.72 billion euros ($9.71 billion), representing a 5.6% increase in reported terms and a 7.7% increase organically. The company’s order intake stood at EUR8.56 billion, down 24% in reported terms and 23% organically.
Net profit witnessed a significant climb of 15%, reaching EUR649 million. Meanwhile, adjusted net profit experienced a 13% increase to reach EUR819 million. Thales recorded earnings before interest and taxes (EBIT) of EUR993 million, compared to EUR891 million in the first half of the previous year, resulting in a solid 11.4% margin.
Free operating cash flow for the period amounted to EUR99 million, showing a decrease when compared to last year’s EUR820 million.
Analysts had estimated sales of EUR8.64 billion, an order intake of EUR8.49 billion, adjusted net profit of EUR764 million, EBIT of EUR980 million with an 11.3% margin, and free operating cash flow of EUR85 million.
Revised Growth Guidance
Thales has narrowed its sales growth guidance for the year 2023. The latest forecast targets organic sales growth of 5% to 7%, slightly narrowing the previous range of 4% to 7%. The company also maintains its expectation for an EBIT margin between 11.5% and 11.8%.