Thales (HO) investor relations material

Executive summary

• Achieved or exceeded all 2025 financial targets, with record order intake of €25.3 billion, robust sales growth, and significant profitability improvement.

• Major strategic progress included a MoU with Airbus and Leonardo to create a leading European space player, and technological breakthroughs in AI and quantum.

• SAMP/T NG air defense system disrupted the market, validated by Denmark's selection, and is expected to drive further export success.

• AI leadership expanded globally, with cortAIx embedded in 100+ products and 250+ use cases, and strategic partnerships with Dassault Aviation and Naval Group.

• Strong ESG progress: significant CO₂ emissions reduction, high completion of climate training, and improved gender diversity in management.

Financial highlights

• Order intake reached €25,264 million, maintaining a book-to-bill ratio of 1.14, and organic order growth of 1%.

• Sales grew 8.8% organically to €22,136 million, with reported growth at 7.6% due to currency headwinds.

• Adjusted EBIT rose 13.3% to €2,740 million, with margin improving to 12.4%.

• Adjusted Net Income group share increased by 5.5% to €2,005 million; Adjusted EPS at €9.76.

• Free operating cash flow up 27% to €2,577 million, with a conversion ratio of 128%.

• Dividend proposed at €3.90 per share, up 5.5%, maintaining a 40% payout ratio.

Outlook and guidance

• 2026 guidance: organic sales growth of 6%-7% (€23.3–23.6 billion), Adjusted EBIT margin of 12.6%-12.8%, and free operating cash flow conversion of 95%-100%.

• Confident in reaching the high end of 2024-2028 targets: organic sales growth, 13%-14% operating margin, and strong cash flow.

• Defence expected to grow high single digits, aerospace mid-single digit, cyber and digital mid-single digit with cyber above and digital below.

• Cyber business recovery is a key 2026 priority, with growth expected to accelerate through the year.

• Temporary additional corporate tax in France renewed for 2026, with expected €90–100 million impact.