Thales sales rise on defence demand
Strong deliveries lift revenue despite softer order intake
Thales reported first-quarter sales of €5.32 billion, up 9.7% organically year‑on‑year, driven mainly by a surge in defence deliveries that boosted revenue across its business lines. The defence division accounted for more than half of total sales and benefited from capacity expansion projects that increased delivery rates; core defence order intake rose sharply, up 75% organically to €2.24 billion.
Quarterly order intake totaled €4.65 billion, below analysts’ consensus of €4.85 billion, though sales slightly exceeded the average forecast of €5.19 billion. Management left its annual organic growth guidance unchanged at 6–7%, citing a strong backlog and continued demand across key segments.
Executives pointed to sustained global demand for defence systems—including advanced electronics, radar, military communications, surveillance and cybersecurity—which has been supported by heightened geopolitical tensions and elevated defence spending in multiple regions. Civil aerospace and digital security also contributed to growth, but defence remained the dominant driver of the quarter’s performance.
The company highlighted that long-term contracts and strategic government partnerships provide revenue visibility and underpin its delivery pipeline. Analysts noted the results reflect a wider industry trend of increased defence investment among NATO members and other countries modernizing military capabilities.
Despite robust revenue growth, the softer-than-expected order intake adds uncertainty about near-term order momentum, leaving Thales focused on converting its backlog into deliveries and monitoring bookings for the rest of the year. Management emphasized operational execution and capacity utilization as priorities to sustain delivery rates and meet market demand while maintaining the guidance range.
