Thales (HO) Q3 2025 earnings summary

Executive summary

• Strong commercial momentum in Q3 and 9M 2025, especially in defense and aerospace, with significant contract wins, including major air defense exports to Denmark and progress on the IRIS² space constellation.

• Launch of Europe's first quantum-resistant smart card, demonstrating innovation in cybersecurity.

• Order intake reached €16.8 billion for the first nine months of 2025, up 8% reported and 9% organically year-over-year.

• Sales totaled €15.3 billion, up 8.4% reported and 9.1% organically compared to the same period in 2024.

• Fourteen large orders over €100 million each were recorded, totaling €5.3 billion, including major contracts in space, defense, and munitions.

Financial highlights

• Order intake reached €16.8 billion at end-September 2025, up 9% organically year-on-year; Q3 order intake grew 37% organically.

• Sales for nine months totaled €15.3 billion, up 9.1% organically; Q3 sales grew 11.2% organically.

• Book-to-bill ratio remained above 1, indicating robust demand.

• Negative currency impact of -€164 million over nine months, including -€91 million in Q3.

• High-single-digit organic sales growth, with mature (+8.9%) and emerging markets (+14.5%) contributing.

Outlook and guidance

• 2025 targets confirmed: organic sales growth of 6–7% (€21.8–22 billion), adjusted EBIT margin of 12.2–12.4%, and book-to-bill above 1.

• All 2025 financial targets confirmed, assuming no new macroeconomic or geopolitical disruptions.

• Defense expected to deliver high single-digit organic growth for full year, with Q4 growth moderating due to a high comparison base.

• Cyber expected to improve sequentially in Q4, with stronger growth anticipated in 2026.

• Guidance based on stable tariffs and continued EU-US aeronautics tariff exemption.