Thales Sa · EURONEXT:HO
Thales Sa — Investor Presentation (May 2026)
66 slides from Thales Sa's investor presentation, May 2026
Slide 1: Investor meeting May 2026
Investor meeting May 2026 www.thalesgroup.com
Slide 2: Table of contents
Table of contents 01 02 03 04 FY 2025 highlights & Introduction to Thales Q1 2026 2026 outlook financial results 05 Sustainability: safer, greener, more inclusive 2
Slide 3: Thales today: a global tech leader in Defence, Aerospace, Cyber & Digital
Thales today: a global tech leader in Defence, Aerospace, Cyber & Digital Sales by segment Adjusted EBIT margin R&D total spend 27% Aerospace 11.8% 12.4% 11.6% 11.0% 10.2% Avionics 9.1% ~16% 56% ~70% ~30% €22.1bn Defence Customer- ~€4.5bn Self-funded funded R&D ~20% of sales R&D 17% Cyber & Digital
Slide 4: Portfolio focused on leading and highly synergistic businesses
Portfolio focused on 3 leading and highly synergistic businesses Critical decision chains Sensing and data gathering Data transmission and storage Data processing and decision making Military Flight management Aerospace Observation satellites communications systems Defence Advanced sensors Digital s
Slide 5: Thales builds on key strengths
Thales builds on 4 key strengths Connectivity Big data Mobility analytics Artificial Cyber- intelligence AI security Cutting edge R&D Deep domain knowledge Large digital asset base Global presence ~€4.5bn, ~20% of sales Top 3 globally or Thales portfolio: Presence in 60+ ~70% customer-funded #1 in E
Slide 6: Focus on R&D: Pioneering AI for Critical Environments
Focus on R&D: at the heart of Thales' technological leadership − Pioneering AI for Critical Environments 800+ ~100 AI Experts PhD students United Kingdom France 5 countries 7 sites Canada Singapore UAE 200 Patents Covering full spectrum of AI technologies Partnership 100+ products Maritime Mine 250
Slide 7: Thales, a global technological leader in Aerospace, Defence and Cyber & Digital
Thales, a global technological leader in Aerospace, Defence and Cyber & Digital Introduction Aerospace Defence Cyber & Digital Q1 2026 FY 2025 2026 outlook ESG 7
Slide 8: Aerospace segment: identity card
Aerospace segment: Sales by solutions Organic sales growth identity card +12% 45% 10% Flight avionics Connected in-flight +9% and other entertainment (IFE) +6% aircraft equipment 6% +2% +3% and services Microwave 2 Global Business Units tubes 2021 2022 2023 2024 2025 Avionics Space 39% Space 19,100
Slide 9: A global leader in flight avionics and connected in-flight entertainment
A global leader in flight avionics and connected in-flight entertainment FLIGHT MICROWAVE AVIONICS & IMAGING TRAINING CONNECTIVITY & SIMULATION AVIATION GLOBAL INFLYT SERVICES EXPERIENCE Introduction Aerospace Defence Cyber & Digital Q1 2026 FY 2025 2026 outlook ESG 9
Slide 10: A global leader in flight avionics and connected in-flight entertainment
A global leader in flight avionics and connected in-flight entertainment Sales by solutions Sales by end-market Sales by activity type 31% Military 10% platforms 74% Microwave tubes 51% 49% Flight avionics €3.6bn €3.2bn(a) Aftermarket €3.2bn(a) Original and other (2025) (2025) 51% support (2025) equ
Slide 11: Focus on Space
Focus on Space INFRASTRUCTURES SERVICES ~€2.3Bn JV STRUCTURE ~€1.0Bn JV STRUCTURE TAS SALES IN 2025 67% Thales / 33% Leonardo TPZ SALES IN 2025 67% Leonardo / 33% Thales 18% France & Italy 31% 28% Telecom Commercial 9% TAS SALES BY 61% TAS SALES BY Asia TAS SALES BY 68% 69% Agencies Other Europe ACT
Slide 12: Space: Telecom market moving to a complementary multi-orbit strategy
Space: Telecom market moving to a complementary multi-orbit strategy Average project size TAS projects END-USER’S SERVICES GEO 36,000 km • Syracuse, KVHTS, Sicral 3, Broadcast SES-24 • TV (video) €150-500m • Adapted to hotspot • Continental coverage • High latency • Exposure to radiation Broadband M
Slide 13: MoU with Airbus and Leonardo to create a leading European player in Space
Signature in 2025 of a MoU with Airbus and Leonardo to create a leading European player in Space New Company New European space player which aims to unite and enhance capabilities by combining the three respective activities to create a player present on the entire space value chain, excluding launc
Slide 14: Defence segment: identity card
Defence segment: identity Sales by solutions Organic sales growth card 22% +13% +12% Communications +7% 43% +6% +4% ~38,000 employees Sensors 24% in 36 countries Mission Systems 2021 2022 2023 2024 2025 Main industrial footprint 11% Australia, Canada, France, Netherlands, UK Effectors €12.2bn 2025 S
Slide 15: Unique position across all the value chain with a balanced and diversified portfolio
Unique position across all the value chain with a balanced and diversified portfolio SENSORS COMMUNICATIONS MISSION SYSTEMS EFFECTORS Leveraging enabling technologies: cybersecurity, AI, quantum etc. Supporting armed forces across all domains in their decisive moments through a unique combination of
Slide 16: Thales on board the Rafale
Thales on board the Rafale * ~25% Share of Thales equipment in Rafale’s value * in partnership with Dassault Aviation SENSORS COMMUNICATIONS MISSION SYSTEMS EFFECTORS Introduction Aerospace Defence Cyber & Digital Q1 2026 FY 2025 2026 outlook ESG 16
Slide 17: Ensuring Naval superiority
Ensuring Naval superiority ~20% Share of Thales equipment on naval platforms SENSORS COMMUNICATIONS MISSION SYSTEMS EFFECTORS Introduction Aerospace Defence Cyber & Digital Q1 2026 FY 2025 2026 outlook ESG 17
Slide 18: Contributing to airspace sovereignty with SAMP/T NG
Contributing to airspace sovereignty with SAMP/T NG World-class air defence system 360°/90° coverage that offers state-of-the-art long range air defence with unique detection and tracking capability Extensive Air sovereignty & protection interoperability and NATO standards against all current and fu
Slide 19: Cyber & Digital (CDI) segment: identity card
Cyber & Digital (CDI) Sales by solutions Organic sales growth segment: identity card Cybersecurity c.38% +8% (1) Secure +4% c.17% Connectivity +2% +1% Digital Identity Payment c.26% Services c.62% A global leader Identity c.19% & Biometrics -4% #1 in Data Security in Europe 2021 2022 2023 2024 2025
Slide 20: A global cybersecurity leader in a new league since 2024
A global cybersecurity leader in a new league since 2024 CYBER DEFENCE - Reported in Defence PREMIUM SERVICES SOVEREIGN PRODUCTS Solid positions in key • Threat & risk evaluation • High assurance products & technologies products and services • Training & simulation • Trusted by key countries and • D
Slide 21: Cybersecurity Global Products: broad range of capabilities
Cybersecurity Global Products: Thales provides a broad range of capabilities to help achieve a stronger data security posture IDENTITIES DATA SECURITY PLATFORM APPLICATIONS CONTROL + VISIBILITY Customer Identity Data Access Web App. & Access Encryption Monitoring Firewall Management Workforce Data D
Slide 22: In summary, Thales, a global tech leader in Defence, Aerospace, and Cyber & Digital
In summary, Thales, a global tech leader in Defence, Aerospace, and Cyber & Digital >€25Bn revenues Attractive employer €5Bn annual R&D budget by 2028 for top talent by 2028 100% premium Active portfolio management Sustainability leader and unique portfolio & capital allocation 22
Slide 23: Table of contents
Table of contents 01 02 03 04 FY 2025 highlights & Introduction to Thales Q1 2026 2026 outlook financial results 05 Sustainability: safer, greener, more inclusive 23
Slide 24: Q1 2026 highlights
Q1 2026 highlights > Strong start to the year with > Elevating Defence with > Thales, a trusted partner for a robust Q1 AI-powered offers Space sovereignty > Order intake up sharply driven by > SkyDefender, a multi-layer and > Thales Alenia Space will supply a continuous high level of demand multi-d
Slide 25: Q1 2026 order intake
Q1 2026 order intake Order intake by contract unit > Strong growth in order intake driven by value Reported growth: +23% large contracts €m Organic growth: +27% > 7 large orders(a) booked in Q1 2026 for €1.6bn vs 5 in Q1 2025 > 2 in Space, of which a new defence geostationary communications satellit
Slide 26: Q1 2026 sales growth
Q1 2026 sales growth Q1 sales growth drivers > Robust organic sales growth in Q1, up +9.7% €m > Aerospace: +5.9% Reported growth: +7.2% > Defence: +14.3% Organic growth: +9.7% > Cyber & Digital: +2.0% > Both mature and emerging markets +471 Currency contributing to strong sales growth & scope > Euro
Slide 27: Aerospace: Q1 2026 key figures
Aerospace: Q1 2026 key figures Q1 Q1 Change €m 2026 2025 Total Organic Order intake 1,522 1,530 (1)% +1% Sales 1,384 1,342 +3.2% +5.9% > Order intake maintained at a solid level > Two large orders booked in Space offsetting the absence of large orders in Avionics in Q1 2026 > Robust sales organic gr
Slide 28: Defence: Q1 2026 key figures
Defence: Q1 2026 key figures Q1 Q1 Change €m 2026 2025 Total Organic Order intake 2,240 1,306 +71% +75% Sales 3,047 2,691 +13.2% +14.3% > Solid start to the year > 5 large orders booked in Q1 2026 vs. 1 in Q1 2025 > Continuous commercial momentum across the portfolio > Thales' capabilities more rele
Slide 29: Cyber & Digital: Q1 2026 key figures
Cyber & Digital: Q1 2026 key figures Q1 Q1 Change €m 2026 2025 Total Organic Sales 859 897 (4.2)% +2.0% o/w Cyber 323 351 (8.0)% (1.3)% o/w Digital Identity 536 545 (1.7)% +4.1% > LSD(a) growth for Cyber & Digital in Q1 > Cyber: slow start to the year as anticipated with a gradual recovery expected
Slide 30: Table of contents
Table of contents 01 02 03 04 FY 2025 highlights & Introduction to Thales Q1 2026 2026 outlook financial results 05 Sustainability: safer, greener, more inclusive 30
Slide 31: Full-Year 2025 highlights
Full-Year 2025 highlights Results • Another year of strong order intake, supported by continued sustained momentum in all Thales' businesses • Sales growth accelerated, outpacing guided range • Robust improvement in profitability vs. last year • Outstanding Free operating cash-flow generation • All
Slide 32: 2025 key figures
2025 key figures Order intake and book-to-bill (€m) Sales (€m) Adjusted EBIT (b) (€m and %) (0)% +7.6% +13.3% + 1 % (a) + 8 . 8 % a) 11.8% + 1 4 . 0 % (a) 12.4% 1.23 1.14 2024 2025 2024 2025 2024 2025 Adjusted net income, Group share (b) (€m) Free operating cash-flow (b) (€m) Dividend (€) (d) +5.5%
Slide 33: 2025 order intake
2025 order intake Order intake by contract unit value 2025 order intake maintained at record level €m • 14 large(a) orders booked in Q4 2025 • 28 large(a) orders booked in 2025 Reported growth: (0)% Organic growth: +1% 2025 book-to-bill of 1.14, and 1.17 excluding Cyber & Digital, whose book-to-bill
Slide 34: 2025 sales growth
2025 sales growth Drivers of sales change Remarkable organic sales growth at +8.8% €m • Defence sales up double digit organically Reported growth: +7.6% • Aerospace up high-single digit, both Avionics and Space Organic growth: +8.8% contributing • Cyber & Digital slightly negative, in line with late
Slide 35: 2024 to 2025 Adjusted EBIT bridge
2024 to 2025 Adjusted EBIT bridge €m +61 +383 R&D Marketing Equity & sales G&A affiliates 2,740 Restructuring Scope, currency and (47) (15) pensions (32) (15) 2,419 (15) Gross margin Scope: +24 Currency: (37) Pensions: (2) 2024 2025 Adjusted EBIT Adjusted EBIT Note: The definition of all non-GAAP me
Slide 36: Aerospace: 2025 key figures
Aerospace: 2025 key figures Change €m 2025 2024 Total Organic Order intake 6,122 6,434 (5)% (5)% Sales 5,910 5,471 +8.0% +8.7% Adjusted EBIT 560 391 +43.1% +39.0% in % of sales 9.5% 7.2% +2.3 pts +2.0 pts Solid underlying momentum in both Avionics and Space • 2025 order intake facially down on the b
Slide 37: Defence: 2025 key figures
Defence: 2025 key figures Change €m 2025 2024 Total Organic Order intake 15,128 14,723 +3% +3% Sales 12,234 10,969 +11.5% +12.2% Adjusted EBIT 1,619 1,432 +13.1% +14.1% in % of sales 13.2% 13.1% +0.2 pts +0.2 pts Order intake reaching new highs in 2025 • Book-to-bill standing at 1.24 in 2025, above
Slide 38: Cyber & Digital: 2025 key figures
Cyber & Digital: 2025 key figures Change €m 2025 2024 Total Organic Sales 3,852 4,024 (4.3)% (0.9)% o/w Cyber 1,455 1,566 (7.1)% (3.8)% o/w Digital Identity 2,397 2,457 (2.5)% +1.0% Adjusted EBIT 526 585 (10.1)% (7.2)% in % of sales 13.7% 14.5% (0.9) pts (0.9) pts o/w Cyber 225 238 (5.3)% +0.9% o/w
Slide 39: Summary adjusted P&L: from Adjusted EBIT to Adjusted net income
Summary adjusted P&L: from Adjusted EBIT to Adjusted net income €m 2025 2024 Adjusted EBIT 2,740 2,419 Cost of net financial debt and other financial results (144) (131) Finance costs on pensions and other employee benefits (56) (49) Income tax (561) (427) Effective tax rate 24.1% 20.4% Adjusted net
Slide 40: Cash conversion: from Adjusted EBIT to Free Operating Cash Flow
Cash conversion: from Adjusted EBIT to Free Operating Cash Flow 2025, €m Financial 128% interest Income Other tax items +724 Equity (120) affiliates Capex (9) (413) (85) (260) Change in WCR Depreciation & Amortization: +486 Net operating investment: (746) Adjusted EBIT Free Adjusted operating net in
Slide 41: Remarkable cash conversion in 2025
Remarkable cash conversion in 2025 Adjusted net income conversion into Free operating cash-flow 128% 185% 162% Cash conversion at 128% in 2025, ahead of 115% 107%(a) expectations 2,515 2,527 2,577 98% • Strong momentum of order intake throughout the year 2,027 • Positive outcome of stocks optimizati
Slide 42: Movement in net debt over 2025
Movement in net debt over 2025 €m Net debt Acquisitions Dividends New leases Net debt at 31 Dec 24 & disposals paid (IFRS16) Others at 31 Dec 25 +2,577 (69) (781) (205) (97) (1,618) (3,044) Free operating cash-flow Introduction Aerospace Defence Cyber & Digital Q1 2026 FY 2025 2026 outlook ESG 42
Slide 43: Adjusted EPS and dividend
Adjusted EPS and dividend Adjusted EPS and dividend per share €m 40% 40% Steady and continued increase of Adjusted 40% EPS since 2021 40% 40% Proposed 2025 dividend up +5.5% at €3.90 (a) per share(a) • Pay-out ratio at 40%, in line with capital allocation policy xx% Pay-out ratio a. Subject to appro
Slide 44: Table of contents
Table of contents 01 02 03 04 FY 2025 highlights & Introduction to Thales Q1 2026 2026 outlook financial results 05 Sustainability: safer, greener, more inclusive 44
Slide 45: Thales is a unique player, present in market with strong growth and long term visibility
Thales is a unique player, present in market with strong growth and long term visibility Defence Aerospace Cyber & Digital • Global geopolitical instability • Air traffic growth and • Mounting cyber threats and and multiplication of conflict commercial fleet renewal digitalization of the economy GROW
Slide 46: Strategic priorities
Strategic priorities 1 2 3 4 5 LEVERAGE REINFORCE DIFFERENTIATE REINFORCE STRENGTHEN PREMIUM PORTFOLIO PREMIUM THROUGH EMPLOYER OUR ESG TO DELIVER GROWTH POSITIONING TECHNOLOGY ATTRACTIVENESS LEADERSHIP • Maintained leadership • Combined delivery • Embracing technology • Investment in our • Protecti
Slide 47: 2026 Key priorities
2026 Key priorities • Scale-up production Ramp-up and • Operational excellence competitiveness 1 • AI driving productivity Group Focus CAPTURING • Answer sovereign needs PROFITABLE GROWTH through localization Customer intimacy • At scale, AI-enhanced, combat-proven solutions 2 3 4 Segment RETURNING
Slide 48: Outlook
Outlook 2026 Mid-term Financial objectives(a) Targets set at 2024 CMD Update Order Intake Book-to-bill above 1 +6% to +7% +5% to +7% Confidence to achieve Organic sales growth corresponding to high-end of range 2024-28 CAGR €23.3 to €23.6 billion Adjusted EBIT margin 12.6% to 12.8% 13% to 14% Well o
Slide 49: Table of contents
Table of contents 01 02 03 04 FY 2025 highlights & Introduction to Thales Q1 2026 2026 outlook financial results 05 Sustainability: safer, greener, more inclusive 49
Slide 50: Sustainability ambitions anchored in our purpose
Sustainability ambitions anchored in our purpose Our purpose Our ambitions “Building a future we Address major societal issues through our can all trust” unique portfolio of solutions Embed strong ESG commitments in all processes Working to make the world safer, greener and more inclusive Introducti
Slide 51: Ambition to become an ESG leader
Ambition to become an ESG leader, with a positive contribution to society and the environment Safer GREENER Greener More inclusive Ambition Keep citizens safe in both Reduce the environmental Grant universal and unbiased Address major societal physical and digital worlds impact of our customers acce
Slide 52: Focus on Defence: one of the most regulated global industries
Focus on Defence: one of the most regulated global industries Strict export controls What we stand for Committed and certified to stringent export control regulations Processes integrated in day-to-day business through training, Operating ethically; selling audit, and focus on continuous improvement
Slide 53: Continuous progress in CSR performance
Continuous progress in CSR performance 2025 priorities Thales Climate Passport training* % of managers having completed the 4-hour training 2025 Target 85% Enhance employees’ 94.6% Ahead SOCIETY awareness on climate 67.4% of plan change 2024 (Launch year) 2025 * 50,120/52,984 having completed the tr
Slide 54: A performance recognised externally with improved ratings
À jour A performance recognised externally with improved ratings 2030 OBJECTIVES 83/100 98th percentile Top 2% of Inclusion Top ~2% Inclusion 500,000 in CAC SBTI out of 22,700 #1 CAC 40 in CAC 40 ESG companies 1.5 index assessed index assessed Introduction Aerospace Defence Cyber & Digital Q1 2026 F
Slide 55: Appendix
Appendix 55
Slide 56: A strong set of focused businesses (1/2)
A strong set of focused businesses (1/2) Segment Sub-segment Civil Military 2025 sales (€bn) Market position Flight avionics(a) #3 worldwide including cockpit avionics, communications, electrical systems, ✓ ✓ ~2.6 (flight avionics) training and simulation Connected in-flight entertainment (IFE)(a) ✓
Slide 57: A strong set of focused businesses (2/2)
A strong set of focused businesses (2/2) Segment Sub-segment Civil Military 2025 sales (€bn) Market position Cyber Top 5 player including products (Data Security, Application Security, Identity & ✓ ~1.5 worldwide Access Management) and services Cyber & Digital 17% of 2025 sales Digital Identity #1 i
Slide 58: Q1 2026 order intake by operating segment
Q1 2026 order intake by operating segment Q1 Q1 Change €m 2026 2025 Total Organic Aerospace 1,522 1,530 (1)% +1% Defence 2,240 1,306 +71% +75% Cyber & Digital 857 918 (7)% (1)% Other 34 24 Total 4,652 3,778 +23% +27% 58
Slide 59: Q1 2026 sales by operating segment
Q1 2026 sales by operating segment Q1 Q1 Change €m 2026 2025 Total Organic Aerospace 1,384 1,342 +3.2% +5.9% Defence 3,047 2,691 +13.2% +14.3% Cyber & Digital 859 897 (4.2)% +2.0% Other 25 31 Total 5,316 4,960 +7.2% +9.7% 59
Slide 60: 2025 order intake by destination
2025 order intake by destination FY FY Change 3% 4% In € millions 2025 2024 Total Organic Near and Rest of the world Middle East France 5,133 6,229 (18)% (18)% 15% United Kingdom 989 1,682 (41)% (41)% Asia Rest of Europe 9,224 7,292 +26% +26% 20% France Europe 15,345 15,203 +1% +1% North America 3,0
Slide 61: 2025 sales by destination
2025 sales by destination FY FY Change 6% 5% In € millions 2025 2024 Total Organic Near and Rest of the world Middle East France 6,125 5,932 +3.3% +3.0% United Kingdom 1,434 1,355 +5.8% +7.1% 10% Asia Rest of Europe 6,208 5,155 +20.4% +20.4% 28% Europe 13,767 12,442 +10.6% +10.7% France North Americ
Slide 62: Summary adjusted P&L: from sales to Adjusted EBIT
Summary adjusted P&L: from sales to Adjusted EBIT 2025 2024 Change €m % of sales €m % of sales Total Organic Sales 22,136 20,577 +7.6% +8.8% Gross margin 6,293 28.4% 5,947 28.9% +5.8% +6.5% Indirect costs (3,634) (16.4)% (3,557) (17.3)% (2.2)% (2.7)% o/w R&D expenses (1,328) (6.0)% (1,274) (6.2)% (4
Slide 63: Adjusted EBIT by operating segment
Adjusted EBIT by operating segment Change €m / % of sales 2025 2024 Total Organic Aerospace 560 9.5% 391 7.2% +43.1% +39.0% Defence 1,619 13.2% 1,432 13.1% +13.1% +14.1% Cyber & Digital 526 13.7% 585 14.5% (10.1)% (7.2)% Adjusted EBIT - operating segments 2,705 12.3% 2,408 11.8% +12.3% +13.1% Other
Slide 64: Organic sales growth per quarter
Organic sales growth per quarter 2023 2024 2025 2026 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Aerospace Defence Cyber & Digital Total 64
Slide 65: 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, net income, less the following elements, net of the corresponding tax effects (i) amortization of In the context of this presentation, the amounts expressed in millions of euros acquir
Slide 66: Thales contact details
Thales 4 rue de la Verrerie 92160 Paris 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 d