Thales Defies Space Losses with Strong 2024 Earnings Boosted by Defence Spending

French defence and technology firm Thales reported better-than-expected earnings for 2024, powered by increased arms spending and a recovery in air traffic, despite experiencing losses in its space sector. The company anticipates higher sales and profitability in 2025, driven by geopolitical factors and investment returns in the defence industry.

Thales, a leading French defence and technology group, surpassed analyst expectations with its 2024 earnings, thanks to heightened arms spending and a rebound in air traffic overcoming space sector losses. The company projects even greater sales and profitability in 2025.

The company reported a 5.7% increase in operating income to 2.419 billion euros on a like-for-like basis, while revenues rose by 8.3% to 20.577 billion euros. There was a notable growth in defence, with new orders increasing by 6% to 25.289 billion euros. Analysts had expected lower figures, according to a consensus compiled by Thales.

CEO Patrice Caine emphasized the role of geopolitical instability in driving defence investments, noting a 13% rise in defence sales and profits. Meanwhile, aerospace earnings declined due to R&D and restructuring costs in the space sector. Thales continues to evaluate potential European collaborations and forecasts like-for-like sales growth of 5-6% in 2025.

(With inputs from agencies.)