Thales Soars Amidst Robust Arms Sales and Rising Profits

Thales reported stronger-than-expected earnings for 2024 due to high arms spending and recovering air traffic, despite space division losses. Operating income rose 5.7%, with revenues increasing by 8.3%. The company forecasts higher sales and profitability in 2025, with new orders growing 6%.

Thales, a prominent French defense and technology company, defied expectations with their 2024 earnings report. Despite facing setbacks in their space division, the company was buoyed by increased arms spending and a resurgence in air traffic activities.

The firm reported a 5.7% increase in operating income on a comparable basis, reaching 2.419 billion euros, while revenues surged by 8.3% to 20.577 billion euros. This growth was driven mainly by substantial gains in the defense sector, overshadowing the performance in aerospace and cybersecurity.

Looking ahead, Thales anticipates continued upward momentum with predictions of higher sales and profitability in 2025. This optimism is supported by a 6% increase in new orders, amounting to 25.289 billion euros.

(With inputs from agencies.)