Thales surged over 8% on Tuesday morning following the announcement of its impressive financial performance in 2024. The French defense and technology group reported strong profitable growth, largely attributed to a record order intake driven by heightened demand in the defense sector. For the fiscal year ending December 31, 2024, Thales reported an attributable net income of 1.42 billion euros.
This figure marks a substantial increase from the previous year's net income of 1.02 billion euros, albeit below the FactSet consensus estimate of 1.62 billion euros. Revenue climbed to 20.58 billion euros, up from 18.43 billion euros in the prior year, surpassing the forecast of 20.12 billion euros. A significant element of Thales’s success was an order intake surge of 9%, reaching 25.29 billion euros.
This included 35 large orders, each valued at over 100 million euros. Notably, the defense segment made the largest contribution, with total orders amounting to 14.72 billion euros and sales increasing to 10.97 billion euros. This growth was supported by enhanced production capacity, especially in land and air systems. In addition, Thales’s aerospace, cyber, and digital divisions achieved sales of 5.47 billion euros and 4.02 billion euros, showing increases of 4.8% and 14.8% respectively.
The company also observed significant regional sales growth in both mature and emerging markets, with double-digit increases reported in Asia. Organic sales growth reached 16% across the remainder of Europe, while Australia and New Zealand experienced a 13% rise. Encouraged by these strong results, Thales's board has decided to increase the final dividend to 2.85 euros per share, up from 2.60 euros.
This decision raises the total annual dividend to 3.70 euros, compared to 3.40 euros the previous year. Looking to the future, Thales targets organic sales growth of 5% to 6% for 2025, which is projected to yield revenues between 21.7 billion euros and 21.9 billion euros. The company is optimistic about sustained demand in its defense sector, while also expecting avionics to gain from both original equipment sales and aftermarket services.
The cyber and digital segments are also poised for continued growth. "We are commencing 2025 with confidence, determination, and a optimistic outlook for the vast majority of our operations. Thales revealed its new strategic roadmap in November 2024. Leveraging our unique leadership positions in growing markets and our capacity to innovate alongside technological advancements, the Group remains committed to achieving accelerated, profitable, and sustainable growth in the upcoming years, starting in 2025," commented Patrice Caine, Chairman and Chief Executive Officer..