Thales, Europe’s largest defense electronics company, reported a 26% increase in new orders, reaching 10.77 billion euros ($11.72 billion) in the first half of 2024. This exceeded the company’s forecast of 10.38 billion euros. The rise was mainly due to large orders like F126 frigates for the German Navy, ammunition for France’s Joint Munitions Command, and radars for the Dutch Ministry of Defence.
CEO Patrice Caine noted that ongoing geopolitical issues, including conflicts in Ukraine and Gaza and tensions in Taiwan, are likely to continue impacting demand for military equipment. He also mentioned that the U.S. elections might increase volatility, while the EU remains committed to Ukraine’s defense and its own security.
Despite the strong order performance, Thales shares fell by 4.4% due to concerns in its space business. The company warned that its space segment’s operating profit margin for 2024 would be negative because of declining demand for commercial telecom activities and restructuring costs. Thales and Airbus have reportedly been discussing combining some space operations to better compete with U.S. companies, but Caine dismissed these as recurring rumors.
Thales has upgraded its full-year sales growth forecast to between 5% and 6%, up from the previous 4% to 6%. Thales is a prominent global player in the fields of defence, aerospace, and security. Headquartered in France, the company designs and builds electrical systems and provides services for sectors such as military, aerospace, transportation, and security.
Thales is known for its cutting-edge technology in radar, communication systems, cybersecurity, and satellite systems. With a presence in over 50 countries and a workforce of around 80,000 employees, Thales continually innovates to meet the complex needs of its customers. The company plays a crucial role in enhancing the safety, security, and efficiency of critical operations worldwide.
