(Reuters) – Thales noted on Wednesday the organic growth forecast of its annual turnover, citing the solid demand for defense in France and Europe, despite sales slightly lower than expectations in the first half.
The French equipment supplier for aerospace, security and defense now says he expects an annual turnover between 21.8 billion and 22 billion euros, with organic growth between 6% and 7%.
Beforehand, the group anticipated organic growth in its annual turnover between 5% and 6%, for an amount located between 21.7 billion and 21.9 billion euros.
Over the January-June period, the turnover of Thales, of which the French State is a shareholder, increased from 8.1% to 10.26 billion euros at constant perimeter and exchange rate.
New orders in the first half have declined 4% to 10.35 billion euros, a withdrawal that the group explains with a high comparison base, three important contracts having been signed in the first half of 2024 against only one more than 500 million euros since the start of the year.
According to a consensus compiled by Thales, analysts anticipated an average of a semi -annual turnover of 10.35 billion euros and new orders at 9.02 billion euros.
The group’s president and chief executive officer, Patrice Caine, said that sales in the first half have been brought “by the vigor of our defense and planeic activities, which benefit from the continuous increase in production capacity”.
“This sustained performance allows us to enhance our annual sales growth objective of sales,” he added in a press release.
Thales has seen its title climb approximately 78% since the start of the year, while the European powers have strengthened their defense expenses to support Ukraine in its war against Russia and to take care of the security of the continent.
In the first half, the adjusted Ebit of Thales increased by 12.7% to 1.25 billion euros in organic data, narrowly beating the consensus which appeared at 1.22 billion euros.
The group confirmed on Wednesday anticipating an adjusted ebit margin between 12.2% and 12.4% over the whole year.
Customs duties set by the United States should have a limited operational impact, said Thales financial director, Pascal Bouchiat, believing that there would be a cost of “several tens of millions of euros” in 2025 if the United States and the European Union reciprocally required 10%taxes.
More than half of Thales’ revenues come from the defense, a sector spared by customs duties, he stressed during a conference call with journalists.
(Written by Anna Peverieri, with Tim Hepher; Jean Terzian, edited by Kate Entringer)
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