Thales (HO) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw strong commercial momentum, especially in Defence & Security, with seven large contracts signed, each over €100 million.

• Order intake reached €15.6 billion for the first nine months of 2024, up 23% organically year-over-year, with robust growth across all business segments and geographies.

• Sales totaled €14.1 billion, up 6.2% organically, with strong performance in mature and emerging markets.

• Partnership with Mistral AI announced to accelerate digital transformation and data protection.

• Joined the CAC 40 ESG Index, reflecting recognition of sustainability and non-financial commitments.

Financial highlights

• Order intake for nine months: €15,551 million (+23% organic, +26% total year-over-year).

• Sales for nine months: €14,069 million (+6.2% organic, +9.4% total year-over-year); Q3 sales up 6.6%.

• Large orders more than doubled year-over-year, with 19 large orders in nine months.

• Acquisitions (Cobham, Imperva, Tesserent) contributed €568 million to sales; divestment of Aeronautical Electrical Systems reduced sales by €99 million.

• Currency impact: -€38 million over nine months; scope impact: +€469 million from acquisitions and disposals.

Outlook and guidance

• 2024 sales expected to grow organically between 5% and 6%, reaching €19.9–20.1 billion.

• EBIT margin guidance confirmed at 11.7%–11.8%.

• Book-to-bill ratio to remain above 1.

• Defense and security organic growth for 2024 expected to be close to 8.5%, with mid-term growth outlook at 6–7%.

• Guidance assumes no major disruptions to the economic context or global supply chains.