In Q1, after accounting for currency effects, order intake rose by 23% y-o-y, driven primarily by the defense sector and orders from NATO member states. Equally expected, due to cyclical factors, the aerospace and cyber & digital segments are showing a slight slowdown.
Thales confirmed its revenue target of €23.5bn by 2026, alongside an operating margin comparable to the record achieved in 2025. Since the start of the war in Ukraine, a tectonic shift at all levels, the European defense sector has been closing the gap with its American counterparts.
Over the last decade, Thales has doubled its profits - both net income and free cash flow - from an average of about €1bn to €2bn per year. Beyond the current geostrategic landscape, it should be noted that the group has also committed nearly €9bn - net of asset disposals - to external growth.
Value creation is therefore tangible, yet structurally constrained by both public procurement capacity and fierce competition among an ever-growing number of players. For Thales, these fundamentals must be weighed against a market capitalization that remains above €50bn.
The French group - still closely controlled by the partnership between the State and the Dassault family - remains somewhat unique in its sector. Rather than a pure equipment manufacturer, it positions itself primarily as a systems architect, integrator - and provider of high-value-added sensors.
In this respect, within the rapidly growing unmanned vehicle sector, where Americans, Israelis, Ukrainians, Russians, Turks, and Iranians have taken the lead, the French company, renowned for its detection and guidance systems, holds a strong hand in the counter-drone market.
