Thales SA

HO

Equity

ISIN FR0000121329 / Valor 524726

Euronext - Euronext Paris (2024-12-23)

EUR 137.05-0.29%

Thales SA
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About company

Thales SA is a global company that provides a wide range of systems, services, and infrastructure essential to various sectors such as defense, security, air and rail transport, banking, and telecommunications. The company offers solutions, services, and products in areas such as satellites, communication systems, rail signaling, data security, biometrics, sensors, and mission systems. Thales focuses on building long-term relationships with its customers, supporting them from system design to equipment maintenance to ensure they can effectively carry out their critical missions. Additionally, Thales is committed to contributing to society by supporting education, professional integration, promoting digital citizenship, and protecting the environment.

Summarized from source with an LLMView SourceSector: Industrials

Order Intake

Thales SA reported an order intake of €23.1 billion for the 2023 financial year, which represents a slight decrease of 2% compared to 2022. However, on an organic basis, the order intake increased by 0.2%. The book-to-bill ratio stood at 1.26, indicating that the order intake was more than 20% higher than sales for the third consecutive year. This robust order intake was supported by several large contracts, including a significant £1.8 billion contract with the UK Ministry of Defence.

Sales Growth

In 2023, Thales SA achieved sales of €18.4 billion, marking a 4.9% increase from the previous year. On an organic basis, sales grew by 7.9%, driven primarily by strong performance in the civil aeronautics sector. This growth reflects the company's ability to capitalize on the recovery in the aeronautics market and sustained demand in the Defence & Security segment.

EBIT and Profitability

Thales SA's EBIT for 2023 was €2,132 million, representing an increase of 10.2% from 2022. The EBIT margin improved to 11.6% of sales, up from 11.0% in the previous year. This growth in EBIT underscores the effectiveness of Thales's business model and operational leverage, contributing to enhanced profitability.

Net Income and Cash Flow

The adjusted net income, Group share, for Thales SA in 2023 was €1,768 million, up 14% from the previous year. However, the consolidated net income, Group share, decreased by 9% to €1,023 million, primarily due to a non-recurring expense related to pension obligations in the UK. The free operating cash flow was €2,026 million, reflecting a conversion ratio of 115% of adjusted net income, Group share.

Dividend and Outlook

Thales SA's Board of Directors proposed a dividend of €3.40 per share for 2023, representing a 16% increase from the previous year. Looking ahead to 2024, Thales aims for a book-to-bill ratio above 1, organic sales growth between 4% and 6%, and an EBIT margin between 11.7% and 12%. The company also targets a cash flow generation conversion ratio close to 100% of adjusted net income to free operating cash flow.

Summarized from source with an LLMView Source

Key figures

1.97%1Y

83.2%3Y

46.3%5Y

Performance

24.8%1Y

26.0%3Y

30.1%5Y

Volatility