Thales Board of Directors (Euronext Paris: HO) convened on March 4, 2024, to assess the financial performance of 2023.
“Once again this year, Thales has delivered outstanding results. Our robust sales momentum persisted throughout 2023, with order intake surpassing €23 billion and the order book achieving record-breaking levels. We witnessed organic sales growth of 7.9%, surpassing expectations, driven notably by the vigor in civil aeronautics activities. This strong growth translated into an even more robust EBIT improvement, soaring by nearly 11%, underscoring the quality of our business model and operating leverage. Furthermore, Thales generated cash in excess of €2 billion,” stated Patrice Caine, Chairman and CEO of Thales.
Caine further remarked, “These achievements reflect the confidence our customers have in us, the dedication of our employees, and the excellence of our technologies. I extend my gratitude to all our teams for their unwavering commitment. Leveraging on these strengths, we diligently prepared for the future in 2023. Notably, two significant acquisitions will enhance our offerings in strategic markets. Cobham Aerospace Communications in avionics and Imperva in cybersecurity will supplement Thales’s current portfolio with high-value technological assets. Preparing for the future also entails setting increasingly ambitious CSR goals. As we culminated an exceptionally positive cycle in 2023, surpassing multi-year objectives and earning recognition from top non-financial rating agencies, we will unveil our new aspirations in this realm in the latter half of 2024. Additionally, gearing up for the future involves sustained R&D investments to nurture our skills and technologies, our greatest assets. Thus, we approach 2024 with optimism, confident in our fundamentals, market positioning, and our role in addressing contemporary societal challenges.”
In compliance with standard IFRS5, financial data for the “transport” operating segment for 2022 and 2023 were classified under “discontinued operations” following exclusive negotiations with Hitachi Rail for the divestiture of this business.
Order intake for the fiscal year 2023 witnessed a marginal decrease of 2% compared to 2022, totaling €23,132 million but rose by 0.2% organically. Despite this, the order intake remained over 20% higher than sales for the third consecutive year, with a book-to-bill ratio of 1.26. Notable orders included 25 large orders valued over €100 million each, totaling €7,764 million.
Sales for 2023 amounted to €18,428 million, marking a 4.9% increase from 2022, with organic growth at 7.9%, driven chiefly by the Aerospace segment.
Thales posted an EBIT of €2,132 million (11.6% of sales) for 2023, representing a 10.2% increase from 2022 in total change and a 10.9% increase in organic change.
Adjusted net income, Group share, amounted to €1,768 million, marking a 14% increase from 2022. However, consolidated net income, Group share, totaled €1,023 million, down 9% from 2022 due to non-recurring expenses related to insurance coverage for obligations under the Thales UK Pension Scheme.
The free operating cash flow stood at €2,026 million compared to €2,527 million in 2022, reflecting exceptional performance.
The Board proposed a dividend of €3.40 per share, a 16% increase from 2022, subject to shareholder approval at the Annual General Meeting on May 15, 2024.
Looking ahead, Thales anticipates a robust outlook for its major markets in the medium term, with targets set for 2024 including a book-to-bill ratio above 1, organic sales growth of 4% to 6%, and an EBIT margin between 11.7% and 12.0%.
About Thales:
Thales (Euronext Paris: HO) is a global leader in advanced technologies across three domains: Defence & Security, Aeronautics & Space, and Digital Identity & Security. The Group is committed to developing products and solutions that contribute to a safer, greener, and more inclusive world. With 77,000 employees across 68 countries and a significant presence in India, Thales invests approximately €4 billion annually in Research & Development.
About Thales in India:
Operating in India since 1953, Thales plays a crucial role in the country’s growth story by sharing expertise in Defence, Transport, Aerospace, and Digital Identity and Security markets. With over 2,000 employees and two engineering competence centers in Noida and Bengaluru, Thales remains committed to serving global needs and fostering innovation.
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