Thales

Thales reported a strong set of FY25 results, beating expectations on sales, EBIT and cash generation. 

Sales came in at €22.1bn, up +8.8% organic YoY and +1.2% above consensus. Adjusted EBIT reached €2.74bn, up +14% organic YoY, with margin expanding +60bps to 12.4%, slightly above market expectations (+1.5% vs consensus). 

The standout was free operating cash flow at €2.58bn, up +27% YoY and +29% above consensus, driving an exceptional 128% cash conversion. 

Defence remained the key growth engine (+12% organic), Aerospace margins improved sharply, while Cyber & Digital was slightly negative YoY but showed stabilisation in Q4. The dividend of €3.90 came in slightly above expectations (€3.82 expected). 

2026 guidance is broadly in line on sales (+6–7% organic) but slightly conservative on margins. 

Overall, this is a high-quality print but the conservative guidance suggests a neutral market reaction.