Thales (HO) Q2 2025 earnings summary

Executive summary

• Sales grew 8.1% year-over-year in H1 2025 to €10.3 billion, led by strong Defence and Avionics/Aerospace performance.

• Adjusted EBIT increased 13.9% to €1,248 million, with margin up to 12.2% from 11.5% in H1 2024.

• Adjusted net income, Group share, reached €877 million, up 1% year-over-year, including a €60 million exceptional French tax charge.

• Free operating cash flow improved sharply to €499 million from -€85 million in H1 2024.

• Major contracts included 26 Rafale Marine jets for the Indian Navy and a £1.16bn UK MOD missile order.

Financial highlights

• Order intake was €10.4 billion, down 4% year-over-year due to a high prior-year base, with a book-to-bill ratio of 1.01.

• Order book at period end reached €50.0 billion, up 7% year-over-year.

• Net debt stood at €3,427 million as of June 30, 2025, down over €1 billion year-over-year.

• Adjusted net income per share was €4.27, up from €4.21.

• Free operating cash flow improvement driven by better working capital and customer payments.

Outlook and guidance

• Upgraded 2025 organic sales growth guidance to 6–7% (from 5–6%), with sales expected between €21.8–22.0 billion.

• Adjusted EBIT margin guidance set at 12.2–12.4% for 2025.

• Book-to-bill ratio expected to remain above 1 for the full year.

• Guidance assumes no major macroeconomic or geopolitical disruptions and specific tariff scenarios.

• Free operating cash flow conversion ratio guidance of 95%-100% of adjusted net income reaffirmed.