Dassault Aviation (AM) H1 2024 (Q&A) earnings summary

Executive summary

• H1 2024 saw a record backlog of €41.2 billion, driven by the Indonesia Rafale contract and strong Falcon demand, with ongoing discussions for the next phase of a fighter demonstrator project expected to begin in 2026, pending political decisions.

• Adjusted net sales rose to €2,538 million, with adjusted net income at €442 million and a net margin of 17.4%, and available cash increased to €8.8 billion as of June 30, 2024, mainly due to advances on Rafale Export contracts.

• 6 Rafale delivered to France and 12 Falcon delivered, with the first Falcon 6X deliveries commenced and Falcon 10X development ongoing, despite persistent supply chain challenges.

• Modernization and relocation of manufacturing facilities, including the move from Argenteuil to Cergy and Seclin, and expansion of MRO network in Asia, South America, and North America to upgrade production capabilities.

• Uncertainty in France's political environment and upcoming elections may impact future government programs and industrial stability.

Financial highlights

• Order intake surged to €5,134 million in H1 2024 from €1,682 million in H1 2023, with 96% from exports.

• Adjusted net sales increased to €2,538 million (H1 2023: €2,295 million); book-to-bill ratio at 2.02.

• Adjusted net operating income reached €170 million (H1 2023: €151 million); adjusted net income per share €5.62 (H1 2023: €4.92).

• Consolidated net income (IFRS) was €476 million (H1 2023: €362 million); net margin 18.8%.

• Self-financed R&D: €200 million in H1 2024, down from €247 million in H1 2023.

Outlook and guidance

• 2024 objectives unchanged: revenue expected to increase versus 2023, targeting €6 billion, with deliveries of 35 Falcon and 20 Rafale.

• Optimism expressed about meeting current order commitments and capacity to accept new orders, with anticipated increased sales from new Falcon 6X and 10X models.