Thales’s Board of Directors (Euronext Paris: HO) met on July 20, 2023 to review the financial statements for the first half of 2023.[1]
The first half of 2023 confirms Thales' strong sales momentum in its various markets. With a 7% increase in the order book compared to June 30, 2022, the Group further reinforced its ability to deliver sustainable growth over the coming years.
Organic sales growth was above 7%, ahead of the full-year target, driven by the on-going recovery in the civil aeronautics business and the strong performance of the Digital Identity & Security operating segment.
The Group's EBIT margin continued to rise, reaching a new record at 11.4%.
Given the solid outlook for most of our businesses in the second half of the year, we have decided to raise our full-year sales growth guidance.
All of Thales's teams are committed to taking the action needed to support sustainable growth. This includes recruiting the talent of tomorrow, supporting our supply chain and investing in our R&D and production capabilities.
Lastly, Thales further strengthens its leadership positions in its markets with two acquisitions: Tesserent in cybersecurity and Cobham Aerospace Communications in cockpit connectivity.
• Order intake: €8.6 billion, down 24% (-23% on an organic basis[2])
• Sales: €8.7 billion, up 5.6% (+7.7% on an organic basis)
• EBIT[3]: €993 million, up 11.4% (+13.1% on an organic basis)
• Adjusted net income, Group share[3]: €819 million, up 13%
• Consolidated net income, Group share: €649 million, up 15%
• Free operating cash flow[3]: €99 million
• Full year 2023 guidance upgraded:
• Book-to-bill ratio[4] above 1
• Organic sales growth between +5% and +7%[5]
• EBIT margin target (unchanged): 11.5% to 11.8%
Thales's half year results 2023 have been commented by Patrice Caine -our Chief Executive Officer- and Pascal Bouchiat -our Chief Financial Officer- in a conference call held at 8:30 am (CET).
Using the following link, you will be able to register, get your personal PIN and choose the most convenient method of connection: list of dial-in numbers or a "call me" option, by entering your phone number.
https://register.vevent.com/register/BI7915e8404d5249d6a4188925a3dd6d85
It will also be possible to follow the conference call through a webcast by using the following link:
https://edge.media-server.com/mmc/p/8o7tm87f
If you were unable to listen to the call, you can use the webcast link above. The recording will be available for a year.
Notes
[1] At the date of this press release, the limited review of the financial statements has been completed and the statutory auditors’ report has been issued following the meeting of the Board of Directors.
[2] In this press release, “organic” means “at constant scope and exchange rates”. See note on methodology on page 11 and calculation on page 16 of the press release.
[3] Non-GAAP financial indicators, see definitions in the appendices, page 11 of the press release.
[4] Book-to-bill ratio: ratio of order intake to sales.
[5] Corresponding to €17.9 billion to €18.2 billion based on July 2023 scope and exchange rates.
[6] Net debt as at June 30, 2022.
