Director ASIM Sandro VR, aug 10
In the first half of 2024, Thales reported strong financial performance, with order intake rising 26% year-over-year to €10,767 million, driven by significant large orders across various sectors. The company’s consolidated order book reached a record €47 billion, up 16% from the previous year. Sales also saw a solid increase of 8.9%, totaling €9,493 million, with robust growth in the Avionics and Defence & Security segments. Despite increased debt servicing costs from recent acquisitions, adjusted net income rose by 6% to €866 million, while consolidated net income surged 57% to €1,017 million, aided by the capital gain from the disposal of the Transport business.
Thales’ operating segments performed variably, with the Defence & Security segment showing a strong EBIT increase of 11% and maintaining a healthy margin of 12.9%. The Aerospace segment’s EBIT was slightly down due to challenges in the space sector, despite strong avionics performance. The Digital Identity & Security segment maintained a solid EBIT margin, although it faced competitive pressures. The Group’s free operating cash flow was lower compared to the previous year, primarily due to an intentional increase in inventory and higher working capital requirements. Net debt rose to -€4,594 million by the end of June 2024, influenced by acquisitions, share buybacks, and dividend payouts.
Looking ahead, Thales expects continued momentum in its sales for the second half of 2024, supported by its strong market position. The company anticipates further growth in profitability, particularly in its Aeronautics and Defence & Security activities, though the Space segment may see a negative EBIT margin due to ongoing challenges and high R&D investments. Thales reaffirms its annual objectives, forecasting organic sales growth of 5-6% and an EBIT margin of 11.7-11.8%, assuming no major disruptions in the global economy or supply chains.
