Thales SA
PAR:HO

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Thales SA Logo
Thales SA
PAR:HO
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Price: 224.2 EUR -0.22% Market Closed
Market Cap: 46.2B EUR

Thales SA
Investor Relations

Thales SA has long stood as a beacon of innovation and reliability in the world of aerospace, defense, and security. Originating from France, this multinational corporation has intricately woven a vast network of technological prowess, primarily driven by its deep-rooted expertise in advancing communication systems, defense electronics, and cybersecurity solutions. Its operations span across over 68 countries, employing a workforce skilled in blending traditional craftsmanship with modern technological advancements. The company’s strength lies in its ability to secure lucrative contracts from governments and large-scale enterprises, which rely on Thales' sophisticated systems for everything from air traffic management to satellite technology. By consistently pushing the boundaries of innovation, Thales positions itself not merely as a service provider but as a strategic partner dedicated to enhancing global security and safety.

Revenue streams for Thales emerge from a diverse yet interconnected array of sectors. The defense segment serves as a cornerstone, generating significant income through comprehensive offerings that include cutting-edge radar systems, avionics, and military communication tools. In the civil market, Thales shines by supplying avionics and in-flight entertainment solutions to major airlines and aerospace manufacturers. Another vital pillar is the digital security segment, where Thales capitalizes on the growing need for cybersecurity and secure transactions, offering solutions that protect data and secure electronic transactions worldwide. Through mergers, acquisitions, and continuous R&D investments, Thales has fortified its position in these markets, ensuring resilient growth by adeptly navigating the intricate landscapes of technology and geopolitical demands.

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Last Earnings Call
Fiscal Period
Q2 2023
Call Date
Jul 21, 2023
AI Summary
Q2 2023

Sales Guidance Raised: Thales upgraded its full-year organic sales growth guidance to 5–7%, or €17.9–18.2 billion, reflecting strong performance year-to-date despite currency headwinds.

Strong H1 Results: Organic sales grew 7.7%, with all segments performing well, and EBIT margin improved by 60 basis points, in line with guidance.

DIS Margin Peak: Digital Identity & Security delivered a record high EBIT margin of 15.9% in H1, but management cautioned this will not be sustained in H2 due to price erosion and cost pressures.

Robust Backlog: Order backlog increased 7% year-on-year, supporting long-term visibility, though headline order intake was down due to a difficult comparison with the prior year’s large Rafale order.

Supply Chain Challenges: Supply chain tensions and inflation continue to affect Space and some hardware areas, but management expects improvement in the second half.

Capital Deployment: Thales was active on M&A, announcing two bolt-on acquisitions totaling over €1 billion, and continued its share buyback program, now nearly 60% complete.

Cash Flow Outlook: Despite lower free cash flow in H1 due to higher inventories and CapEx, the company expects to reach about €1.5 billion in free cash flow for the full year, with normalized cash conversion.

Key Financials
Order Intake
€8.6B
Organic Sales Growth
7.7%
EBIT
not stated (up 13% YoY)
EBIT Margin
not stated (up 60 bps YoY)
Adjusted Net Income
€819M
Adjusted EPS
€3.91
Free Operating Cash Flow
€99M
Net Debt
€781M
Aerospace EBIT Margin
7%
Defence & Security EBIT Margin
12.3%
DIS EBIT Margin
15.9%
DIS Sales
€1.6B
Defence & Security Sales
€4.6B
Aerospace Sales Growth
10.1% organic growth
Order Backlog
up 7% YoY
Dividends Paid
€468M
Shares Repurchased
4.4M shares (€210M)
Earnings Call Recording
Other Earnings Calls

Management

Mr. Philippe Knoche
Senior Executive Vice President of Operations & Performance
No Bio Available
Mr. Philippe Keryer
Senior Executive Vice-President of Strategy, Research & Technology
No Bio Available
Mr. Marko Erman
Senior VP & Chief Scientific Officer
No Bio Available
Ms. Alexandra Baubigeat Boucheron
VP & Head of IR
No Bio Available
Ms. Peggy Nahmany
Executive Vice President of Communications
No Bio Available
Mr. Pierre Schaeffer
Chief Marketing Officer & Senior VP
No Bio Available
Mr. Clement de Villepin
Senior Executive Vice President of Human Resources
No Bio Available
Ms. Pascale Sourisse
Senior Executive Vice President of International Development
No Bio Available
Mr. Ruben Lazo
Deputy Chairman & VP of Latin America
No Bio Available
Mr. Philippe Duhamel
Executive Vice-President of Defense Mission Systems
No Bio Available

Contacts

Address
ILE-DE-FRANCE
Courbevoie
Tour Carpe Diem 31 Place des Corolles
Contacts
+33157778000.0
www.thalesgroup.com