Thales Sa · EURONEXT:HO
Thales Sa — H1 2025 Earnings Presentation
28 slides from Thales Sa's earnings presentation, Jul 23, 2025
Slide 1: H1 2025 results
H1 2025 results 23rd July 2025 www.thalesgroup.com
Slide 2: H1 2025 highlights
H1 2025 highlights > Sales up high-single digit, driven by Avionics and Defence > Supportive context in Defence offering further mid-term opportunities for Thales > Order of 26 Rafale Marine by the Indian Navy booked in Q2 2025 > £1.16bn Air Defence contract with the UK MoD for the supply of 5,000 L
Slide 3: H1 2025 key figures
H1 2025 key figures Order intake and book-to-bill (€m) Sales (€m) Adjusted EBIT(b) (€m and %) -4% +8.1% -4%(a) +13.9% +8.1%(a) 12.2% 1.13 1.01 +12.7%(a) 11.5% Adjusted net income, Free operating cash-flow(b) (€m) Net cash (debt) position(b) (€m) Group share(b) (€m) +1% a. Organic: at constant scope
Slide 4: H1 2025 order intake
H1 2025 order intake Order intake by contract unit value > Solid H1 order intake €m Reported growth H1 23 vs. H1 25: +21% > Order of 26 Rafale by the Indian Navy with a unit Reported growth: -4% value above €1 billion in H1 2025 Organic growth: -4% > 3 orders with unit value above €500m in H1 2024 >
Slide 5: H1 2025 organic sales growth
H1 2025 organic sales growth H1 sales growth drivers > Scope and currency impact > Positive scope impact, mainly resulting from Cobham €m Reported growth: +8.1% Aerospace Communications acquisition > Negative currency impact, mainly linked to EUR/USD Organic growth: +8.1% and EUR/AUD evolutions Orga
Slide 6: H1 2024 to H1 2025 Adjusted EBIT bridge
H1 2024 to H1 2025 Adjusted EBIT bridge €m Gross margin -13 0 Equity -12 1,248 -23 affiliates R&D Marketing G&A Scope, currency and & sales Restructuring +28 pensions 1,096 +160 +12 Naval Group: -9 Others: +37 Scope: +23 Currency: -9 Pensions: -2 H1 2024 H1 2025 Adjusted EBIT Adjusted EBIT H1 2025 r
Slide 7: Aerospace: H1 2025 key figures
Aerospace: H1 2025 key figures H1 H1 Change €m 2025 2024 Total Organic Order intake 2,658 2,688 -1% -3% Sales 2,759 2,582 +6.8% +5.8% Adjusted EBIT 252 167 +50.9% +36.4% in % of sales 9.1% 6.5% +2.7 pts +1.9 pts > Order intake broadly stable vs. H1 2024 > Solid underlying demand in Avionics > Space
Slide 8: Defence: H1 2025 key figures
Defence: H1 2025 key figures H1 H1 Change €m 2025 2024 Total Organic Order intake 5,751 6,120 -6% -6% Sales 5,581 4,938 +13.0% +12.7% Adjusted EBIT 720 639 +12.6% +13.5% in % of sales 12.9% 12.9% 0.0 pts +0.1 pts > Order intake facing tough comparison basis, strong underlying momentum remains > 6 la
Slide 9: Cyber & Digital: H1 2025 key figures
Cyber & Digital: H1 2025 key figures H1 H1 Change €m 2025 2024 Total Organic Sales 1,862 1,934 -3.7% -1.9% o/w Cyber 708 746 -5.0% -3.5% o/w Digital Identity 1,153 1,188 -2.9% -0.8% Adjusted EBIT 265 272 -2.5% -0.6% In % of sales 14.2% 14.1% +0.2 pts +0.2 pts o/w Cyber 97 102 -5.6% -3.4% o/w Digital
Slide 10: Summary adjusted P&L: from Adj. EBIT to Adj. net income
Summary adjusted P&L: from Adj. EBIT to Adj. net income €m H1 2025 H1 2024 Adjusted EBIT 1,248 1,096 Cost of net financial debt and other financial results (86) (55) Finance costs on pensions and other employee benefits (26) (28) Income tax (277) (193) 1 Effective tax rate 26.7% 20.4% Adjusted net i
Slide 11: H1 2025 Free operating cash-flow
H1 2025 Free operating cash-flow €m H1 2025 H1 2024 > Improvement in WCR Operating cash flow before WCR changes, 1,526 1,472 variance compared to last interest and tax year + Change in WCR and reserves (530) (995) for contingencies > Continued satisfactory payment profile from customers + Pension ca
Slide 12: Movement in net debt over H1 2025
Movement in net debt over H1 2025 €m Net debt Net debt at 31 Dec 24 at 30 Jun 25 Free operating Acquisitions Dividends cash-flow & disposals paid New leases -64 (IFRS16) Others -3,044 +499 -586 -118 -114 -3,427 H1 2025 results 12
Slide 13: Strategy and outlook
2025 half-year results Strategy and outlook H1 2025 results 13
Slide 14: Key 2025 priorities
Key 2025 priorities Continued ramp up to capture market growth Maintained innovation leadership Space recovery plan Integration of acquisitions H1 2025 results 14
Slide 15: Solid progress in H1 2025
Solid progress in H1 2025 1 Continued ramp up 2 Restoring Space profitability to capture market growth Adaptation plan: 75% of Further capacity expansions positions redeployed (e.g., Cholet, Hengelo, Recent commercial wins Gdansk) supporting profitability recovery Recruitments: Thales ranked
Slide 16: 2025 financial objectives: sales organic growth guidance upgraded
2025 financial objectives: sales organic growth guidance upgraded 1 2 3 Order intake Sales Adjusted EBIT margin(b) Book-to-bill +6% to +7%(a) 12.2% to 12.4%(a) above 1 organic growth, vs. +5 to +6% previously corresponding to €21.8 to €22.0 billion Upgraded Assuming no new disruptions of the macroec
Slide 17: Appendix
Appendix H1 2025 results 17
Slide 18: Upcoming events
Upcoming events 23 October 2025 (before market opening) Q3 and 9m 2025 sales H1 2025 results 18
Slide 19: Considerations on US tariffs (Q1 2025)
Considerations on US tariffs (Q1 2025) > Global considerations for Thales Thales 2024 sales to the US1 > Multi-local business protective by nature > Defense activities still exempt from tariffs > Favorable incoterms in some export contracts > 3 main areas that could be impacted > Avionics aftermarke
Slide 20: H1 2025 order intake by destination
H1 2025 order intake by destination H1 H1 Change 4% 4% In € millions 2025 2024 Total Organic Middle East Rest of the world France 1,899 2,099 -10% -10% United Kingdom 433 571 -24% -25% Rest of Europe 2,706 2,884 -6% -7% 18% France Europe 5,037 5,554 -9% -10% 24% North America 1,376 1,274 +8% +6% 4%
Slide 21: H1 2025 sales by destination
H1 2025 sales by destination H1 H1 Change 6% 5% In € millions 2025 2024 Total Organic Middle East Rest of the world France 3,002 2,940 +2.1% +1.2% United Kingdom 708 624 +13.5% +11.7% 10% Asia 29% Rest of Europe 2,669 2,250 +18.6% +18.3% France Europe 6,378 5,814 +9.7% +8.9% North America 1,312 1,26
Slide 22: Summary adjusted P&L: from sales to Adjusted EBIT
Summary adjusted P&L: from sales to Adjusted EBIT H1 2025 H1 2024 Change €m % of sales €m % of sales total organic Sales 10,265 9,493 +8.1% +8.1% Gross margin 2,958 28.8% 2,771 29.2% +6.8% +5.8% Indirect costs (1,756) -17.1% (1,710) -18.0% +2.7% +1.5% o/w R&D expenses (627) -6.1% (599) -6.3% +4.7% +
Slide 23: H1 2025 Adjusted EBIT by operating segment
H1 2025 Adjusted EBIT by operating segment H1 H1 Change €m / % of sales 2025 2024 Total Organic Aerospace 252 9.1% 167 6.5% +50.9% +36.4% Defence 720 12.9% 639 12.9% +12.6% +13.5% Cyber & Digital 265 14.2% 272 14.1% -2.5% -0.6% Adj. EBIT – operating segments 1,237 12.1% 1,078 11.4% +14.7% +13.6% Oth
Slide 24: Organic sales growth per quarter
Organic sales growth per quarter 2022 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Aerospace Defence Cyber & Digital Total H1 2025 results 24
Slide 25: Q2 2025 order intake by operating segment
Q2 2025 order intake by operating segment Q2 Q2 Change €m 2025 2024 Total Organic Aerospace 1,128 1,685 -33% -32% Defence 4,449 2,998 +48% +50% Cyber & Digital 975 1,028 -5% -1% Other 22 19 Total 6,574 5,730 +15% +17% H1 2025 results 25
Slide 26: Q2 2025 sales by operating segment
Q2 2025 sales by operating segment Q2 Q2 Change €m 2025 2024 Total Organic Aerospace 1,417 1,400 +1.2% +3.5% Defence 2,896 2,633 +10.0% +10.6% Cyber & Digital 959 1,017 -5.8% -1.6% dont Cyber 351 394 -11.0% -7.0% dont Digital 608 623 -2.4% +1.8% Other 32 21 Total 5,305 5,071 +4.6% +6.4% H1 2025 resu
Slide 27: Definition of non-GAAP measures and other remarks
Definition of non-GAAP measures and other remarks > Rounding of amounts in euros > Adjusted net income: net income, less the following elements, net of the corresponding tax effects: (i) amortization of acquired assets (PPA), In the context of this presentation, the amounts expressed in millions of
Slide 28: Thales SA contact details
Thales SA 4, rue de la Verrerie 92190 Meudon France ir@thalesgroup.com This presentation contains certain forward-looking statements. Although Thales believes that its expectations are based on reasonable assumptions, actual results may differ significantly from these forward-looking statements due