Dassault Aviation (AM) H1 2025 earnings summary

Executive summary

• Order intake surged to €8.1 billion in H1 2025, driven by a major Rafale Marine contract with India and strong export demand, setting a new backlog record of €48.3 billion as of June 30, 2025.

• Net sales rose 12% year-over-year to €2.85 billion, with 7 Rafale and 12 Falcon aircraft delivered in H1 2025.

• Adjusted net income declined to €386 million, impacted by a €67 million French tax surcharge, while adjusted operating income increased to €180 million.

• Ongoing industrial modernization and expansion of "Make in India" initiatives, including the first Falcon 2000 assembly line outside France.

• Uncertainties remain due to military, budgetary, and tariff contexts, particularly regarding US-EU negotiations affecting Falcon activity.

Financial highlights

• Adjusted net sales: €2.85 billion, up from €2.54 billion year-over-year.

• Adjusted operating income: €180 million (6.3% margin), up from €170 million (6.7% margin) in H1 2024.

• Adjusted net income: €386 million (13.6% margin), down from €442 million (17.4% margin) in H1 2024.

• Available cash increased to €9.55 billion, mainly from Rafale Export advances; free cash flow at €1.5 billion.

• Book-to-bill ratio reached 2.84 in H1 2025.

Outlook and guidance

• 2025 guidance maintained: net sales expected to increase to around €6.5 billion, with deliveries of 40 Falcon and 25 Rafale aircraft.

• Guidance excludes potential impacts from U.S. tariffs and European countermeasures.

• Ongoing focus on managing supply chain disruptions and maintaining delivery targets despite industry-wide challenges.