Military and Aerial Operations
In a significant development, Thales, the French conglomerate specialising in defense electronics and avionics, has raised its financial targets for fiscal 2025. The company now expects organic sales growth of 6% to 7%, which equates to annual sales between €21.8 billion and €22 billion - an upgrade from its previous forecast of 5% to 6% growth (€21.7 billion to €21.9 billion) [1][2].
The revised outlook for Thales is higher than its previous one, and the new revenue forecast ranges from €21.8 to €22 billion. For adjusted EBIT margin, Thales maintains a target range of 12.2% to 12.4%, driven by improved margins in its Aerospace segment and sustained high margins in Defense [1].
In the first half of 2025, Thales reported an 8.1% increase in sales to €10.27 billion, a 6% rise in net income from continuing operations, reaching €664 million, and adjusted net income of €877 million, up slightly from the previous year [1][5]. The company also reported an increasing order intake of significant defense contracts, including six orders exceeding €100 million each [1][5].
Thales attributes the strengthened financial outlook largely to the surge in European defense demand and aerospace sector growth, which has helped offset potential risks such as Euro-American trade tensions [2]. Over half of its defense contracts are secured outside the U.S., mitigating some geopolitical risks [2][5].
These developments reflect Thales' positioning to capitalise on heightened defense spending and aerospace demand in Europe and globally [1][2][5]. The company's increased revenue forecast is a reflection of its strong performance and market position in the defense electronics and avionics sectors.
Key Points:
| Financial Metric | 2025 Target/Result | |----------------------------|----------------------------------------------------| | Organic Sales Growth | 6% to 7% (upgraded from 5%-6%) | | Annual Sales Forecast | €21.8 billion to €22 billion | | Adjusted EBIT Margin | 12.2% to 12.4% | | H1 2025 Sales | €10.27 billion (+8.1% YoY) | | H1 2025 Net Income | €664 million (+6% YoY) | | Adjusted Net Income | €877 million | | Defense Orders | Several large (€100M+) contracts booked early 2025 |
The revision of Thales' revenue growth forecast has been made due to improved market conditions in the defense and aerospace sectors. The increase in Thales's revenue growth forecast is a result of rising demand for defense goods and in the aerospace industry. The new upper limit of Thales's revised revenue forecast for the year is €22 billion.
Thales' revised revenue growth forecast is now upgraded to a range of 6% to 7%, with the new upper limit at €22 billion, driven by the improved market conditions in the defense and aerospace sectors. The company's financial performance is strengthened through substantial defense contracts, such as those exceeding €100 million, and the maintained target range for adjusted EBIT margin of 12.2% to 12.4%.
