By Thales, the French aerospace-and-defense company, reported record high orders in 2023 due to increased military spending, surpassing analysts’ expectations. The company posted sales of 18.43 billion euros ($20.01 billion), showing a growth of 4.9% in reported terms and 7.9% organically.
Sales Projections for the Year
For the current year, Thales anticipates sales ranging between EUR19.7 billion and EUR20.1 billion, representing a growth of 4% to 6% organically. Despite a slight decrease in order intake in 2023 to EUR23.13 billion in reported terms, it increased by 0.2% organically.
Financial Performance Highlights
While net profit saw a decline of 9% to EUR1.02 billion, adjusted net profit, which influences the dividend policy, surged by 14% to EUR1.77 billion. Thales announced a proposed dividend of EUR3.40 per share for 2023, marking an increase from the previous year.
Earnings before interest and taxes (EBIT) witnessed growth to EUR2.13 billion compared to the previous year, resulting in an 11.6% margin. The company aims to achieve an EBIT margin between 11.7% and 12% this year.
Analyst Expectations
Market analysts had predicted sales of EUR18.18 billion, an order intake of EUR20.65 billion, adjusted net profit of EUR1.68 billion, EBIT of EUR2.11 billion, and free operating cash flow of EUR1.62 billion, according to the company’s market consensus.
For more updates on Thales’s performance and industry insights, stay tuned for further reports.
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