Thales beat 1H estimates with €4.82 adjusted EPS on €10.95B revenue, while order intake surged 21% to €12.5B. Reaffirmed FY2026 margin target of 11.5–12.0%.
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Thales delivered a first-half earnings beat, with adjusted EPS of €4.82 on revenue of €10.95 billion, up 6.6% from a year earlier. The defense and aerospace contractor booked €12.5 billion in orders, a 21% jump that the company said reflected strong demand across its core markets.
The defense segment drove the bulk of the intake, with governments in Europe and the Asia-Pacific region accelerating procurement of radar, avionics, and secure-communications systems. The aerospace division added a tailwind from commercial aftermarket sales, where airlines are restocking spare parts and upgrading cockpit electronics.
Thales reaffirmed its full-year 2026 outlook, calling for organic revenue growth of 4% to 6% and an operating margin between 11.5% and 12.0%. The guidance assumes the current order pipeline converts on schedule, with no major disruptions to supply chains or export licenses.
Free cash flow for the half came in at €687 million, up from €512 million a year earlier, helped by higher customer advances on long-term contracts and tighter working capital management. The company said it expects full-year cash conversion to land near the top of its historical range.
Thales shares rose 1.8% in Paris trading on the release.
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