- Thales’ organic sales increased by 9.9% in Q1, surpassing the estimated growth of 6.88%.
- Total sales reached €4.96 billion, a 12% year-over-year increase, exceeding the expected €4.78 billion.
- Aerospace sector sales amounted to €1.34 billion, marking a 14% rise year-over-year, above the forecasted €1.29 billion.
- Defense & Security sales saw a significant rise to €2.69 billion, a 16% increase year-over-year, higher than the anticipated €2.52 billion.
- Digital Identity & Security sales slightly decreased to €903 million, a 1.4% drop from the previous year, missing the forecast of €965.2 million.
- Order intake fell by 25% year-over-year to €3.78 billion, with organic orders declining by 27%.
- Thales maintains its EBIT margin forecast between 12.2% to 12.4%, aligning closely with the 12.4% estimate.
- 2025 sales are projected to be between €21.7 billion to €21.9 billion, slightly below the estimate of €22.05 billion.
- Organic sales growth for the year is expected to be between 5% to 6%, compared to an estimate of 6.44%.
- The book-to-bill ratio is anticipated to remain above 1, aligning with an estimate of 1.13.
- The CEO notes that Q1 order intake was strong compared to 2022 and 2023, attributing the decline compared to Q1 2024 to an unusually high comparison base.
- Thales is evaluating the impact of increased tariffs and is working on mitigation strategies; the company does not currently see a direct impact challenging its 2025 targets, but potential indirect effects are still uncertain.
A look at Thales SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Thales SA, a company specializing in aerospace systems and industrial electronics, is positioned for a promising long-term outlook according to Smartkarma Smart Scores. With a Momentum score of 5, Thales demonstrates strong positive market momentum. Additionally, the company scores well on Growth and Resilience, with a score of 3 in each category, indicating potential for expansion and stability in the face of challenges. While the Value and Dividend scores are at 2, Thales still shows potential for growth and resilience in the long term.
Thales SA‘s diverse range of products, including radar systems, communications technology, and semiconductor products, caters to both civilian and military markets. With a solid overall outlook based on Smartkarma Smart Scores, Thales is positioned to leverage its strengths in market momentum, growth potential, and resilience to drive long-term success in the aerospace and industrial electronics sectors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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