Thales (HO) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw robust commercial momentum with organic sales growth of 9.9% year-over-year, driven by strong demand in defense and avionics, and a book-to-bill ratio expected above 1 for the year.

• Order intake was €3.78 billion, down 25%-27% year-over-year due to a high comparison base from major contracts in Q1 2024.

• Integration of Imperva in the cyber segment is progressing, with the sales force merger underway to unlock further growth potential.

• The company benefits from a broad portfolio, especially in European Defence, supporting long-term visibility.

Financial highlights

• Q1 2025 sales reached €4.96–€5 billion, up 12.2% reported and 9.9% organic year-over-year, with positive scope and currency impacts.

• Order intake of €3.78–€3.8 billion, down 25%-27% year-over-year, but above Q1 2023 and 2022 levels.

• Five large orders over €100 million each totaled €707 million, including contracts in space, avionics, and defense.

• Sales in mature markets grew 12.4% year-over-year; emerging markets sales up 11.5%.

Outlook and guidance

• 2025 guidance reaffirmed: organic sales growth of 5%-6% (€21.7–€21.9 billion), adjusted EBIT margin 12.2%-12.4%.

• Book-to-bill ratio expected above 1 for 2025; guidance incorporates potential tariff impacts known as of April 2025.