Thales (HO) investor relations material

Executive summary

• Q1 2026 saw robust order intake of €4.7 billion, up 23% year-over-year (+27% organic), and strong sales growth of €5.3 billion (+9.7% organic), led by Defence and supported by high-quality backlog and solid execution.

• Technological leadership was reinforced with new AI-powered solutions like SkyDefender and Expeditionary PathMaster, and a key space contract for Luxembourg.

• Commercial momentum was strong across Europe and the Middle East, with large orders and high granularity in order intake.

• All 2026 financial targets were confirmed, supported by robust fundamentals and favorable structural trends.

Financial highlights

• Q1 2026 order intake reached €4,652 million, up 23% reported and 27% organically year-over-year, with seven large orders totaling €1.6 billion.

• Sales were €5,316 million, growing 7.2% reported and 9.7% organically versus Q1 2025; Defence sales rose 14.3%, Aerospace 5.9%, and Cyber & Digital 2%.

• Mature markets order intake: €3,745 million (+31% organic); emerging markets: €908 million (+10% organic).

• Currency effects created a 2.5-point headwind on reported growth, with a €116 million negative impact on Q1 2026 sales.

Outlook and guidance

• Full-year 2026 guidance confirmed: organic sales growth of 6%-7% (€23.3–23.6 billion), adjusted EBIT margin of 12.6%-12.8%, and book-to-bill ratio above one.

• Defence organic growth expected at high single digits for 2026, with order intake momentum positive but revenue recognition subject to timing of contract conversions.

• Cyber expected to deliver mid-single digit plus growth for the year, with improvement from Q2 onward.

• Guidance assumes no major macroeconomic or geopolitical disruptions and average EUR/USD at 1.18 for the remainder of 2026.

• Guidance will be revisited at mid-year, considering uncertainties in civil aviation and geopolitical developments.