Thales: the defense sector will drive the group’s growth in 2025.

The combined general meeting of the Thales group was held on May 12, 2026 under the chairmanship of Patrice Caine, Chairman and CEO. Shareholders approved the accounts for the 2025 financial year, which resulted in order intake maintained at a high level, an acceleration in sales growth and an improvement in profitability, in a context of sustained increase in European defense spending.

Financial results on the rise

Order intake reached 25.264 billion euros, stable compared to 2024 (25.289 billion), with an organic variation of + 1%. Consolidated turnover stood at 22.136 billion euros, up 7.6% (+8.8% organically). Adjusted EBIT increased by 13.3% to 2.740 billion euros, a margin of 12.4% compared to 11.8% a year earlier. The adjusted net result, Group share, came to 2.005 billion euros (+ 5.5%), while the consolidated net result reached 1.674 billion euros.

Operating free cash flow reached a record level of 2.577 billion euros, up 27%, representing a conversion ratio of 128% of adjusted net income. The consolidated order book exceeds 53 billion euros and represents 3.4 years of turnover in the Defense sector. The board of directors proposed a dividend of 3.90 euros per share (+ 5.5%), corresponding to a distribution rate of 40% of adjusted net profit per share, resolution adopted by the meeting.

Defense, the primary engine of growth

The Defense segment, which represents more than half of the group’s activity, posted a turnover of 12.234 billion euros, organic growth of 12.2%. Order intake reached 15.128 billion euros (+ 3%) and adjusted EBIT amounted to 1.619 billion euros, a margin of 13.2%, presented by management as among the highest in the sector. Thales highlights the continued ramp-up of production and deliveries across the entire product portfolio.

28 large orders with a unit value greater than 100 million euros were recorded during the financial year. Among the notable contracts are the supply of 26 Rafale Marines to the Indian Navy, as part of the contract with Dassault Aviation, the order by the United Kingdom for 5,000 light multirole LMM missiles, as well as the acquisition by Sweden of Ground Master 200 radars. The group claims a position at the heart of European rearmament and a portfolio of products and systems optimized by artificial intelligence.

Aerospace recovers its margin, cyber stabilizes its activity

The Aerospace segment recorded a turnover of 5.910 billion euros (+8.7% organically) for an adjusted EBIT of 560 million euros, i.e. a margin of 9.5% compared to 7.2% in 2024. The Avionics activity grew by double digits, on both the civil and military sectors, while the Space activities recorded the expected recovery in their profitability, driven by the Observation, Exploration & Science and Navigation segments. The contract Argonaut concluded with the European Space Agency for a future lunar lander is among the notable achievements of the exercise. Order intake for the segment, however, fell by 5%, to 6.122 billion euros.

The Cyber ​​& Digital segment posted a turnover of 3.852 billion euros, a slight organic decline of 0.9%, and an adjusted EBIT of 526 million euros (margin of 13.7%). The group cites unfavorable exchange rate effects and new customs duties, as well as the finalization of the integration of Imperva’s sales forces. An improvement in the trend was observed in the fourth quarter.

Across the group, the adjusted EBIT margin increased from 8.1% in 2020 to 12.4% in 2025. Adjusted net profit per share stood at 9.76 euros, up more than 50% since 2021.

A first quarter of 2026 marked by dynamic defense

Over the first three months of 2026, order intake reached 4.652 billion euros, organic growth of 27% compared to the same period of 2025, driven according to the group by sustained momentum in defense. Quarterly turnover stood at 5.316 billion euros, an organic increase of 9.7%.

Creation of a European space cluster with Airbus and Leonardo

In 2025, Thales signed a memorandum of understanding with Airbus and Leonardo for the creation of a European space player bringing together the entire value chain, with the exception of launchers. The planned capital structure divides the capital between Airbus (35%), Leonardo (32.5%) and Thales (32.5%), with equal voting rights between the three shareholders. The whole would represent, based on the pro forma 2024 accounts, around 6.5 billion euros in turnover and more than 25,000 employees. The operational launch is planned for 2027, subject to regulatory authorizations and the conditions for finalizing the operation. The group cites potential synergies of several hundred million euros over five years.

Artificial intelligence and R&D

Thales claims a pioneering position in the integration of artificial intelligence into critical environments. The group brings together more than 800 AI experts and around a hundred doctoral students, spread across nine sites in five countries (France, Germany, United Kingdom, Canada, Singapore). It claims to hold 200 patents covering the spectrum of AI technologies, broken down into more than 100 products and 250 use cases. The platform cortAIx is developed in partnership with Dassault Aviation and Naval Group.

Several military applications are highlighted. The designation pod THALIOSembark south Rafaleis intended to improve the identification and engagement of targets. The system In advance aims to optimize decision-making in command and control (C2) systems in the operational environment. The solution Expeditionary PathMaster is dedicated to accelerating mine clearance operations and securing maritime spaces. The group also announced in 2025 the launch of the first smart card certified resistant to quantum attacks.

Extra-financial performance

Thales reports a 75.2% reduction in its greenhouse gas emissions on scopes 1 and 2 compared to the 2018 reference year, significantly exceeding the objective set for 2030 (- 50.4%). The reduction in scope 3 emissions reached 15.4%, in line with the 2030 objective of – 15%. The share of women at the highest levels of responsibility stands at 21.8%, compared to an objective of 25% by 2030, for an overall feminization rate of the workforce by 27.6%, the group indicates having received 1.4 million applications in 2025 and has been carrying out between 8,000 and 10,000 external recruitments per year for five years, including 32% women in 2025.

Priorités 2026 et gouvernance

For 2026, the group has identified four cross-functional priorities – ramp-up and competitiveness, customer proximity, attractiveness and skills development, innovation and artificial intelligence – and three priorities by activity: return to growth in cybersecurity, preparation of the Bromo acquisition project, and extension of the avionics offer.

The assembly renewed the mandate of Patrice Caine as administrator, paving the way for his continuation as president and general manager. The mandates of Anne-Claire Taittinger, Éric Trappier, Valérie Guillemet, Loïk Segalen and Marie-Françoise Walbaum were also renewed.

The remuneration policy of the Chairman and CEO is changing: the annual fixed remuneration is increased from 1,000,000 to 1,100,000 euros and the target variable remuneration increases from 1,000,000 to 1,650 000 euros, the possibility of outperformance being maintained at 150% of the target. The extra-financial criteria for variable remuneration now include a criterion linked to scope 3.1 “Purchasing” to replace the criterion relating to scopes 1 and 2.

As of May 5, 2026, the Thales share price has increased by 3.1 over four years, a trajectory close to that of the FTSEurofirst 300 Aerospace and Defense index (x 3.0 over the same period) and significantly higher than that of the CAC 40 (x 1.1).