Thales S.A.

The year-end 2025 order book of €53.3 billion covers approximately 2.4 times annual sales, and the defense order book of €41.6 billion alone represents roughly 3.4 years of defense revenue, supporting strong multi-year visibility. Defense book-to-bill has remained above 1.0 for multiple consecutive years through varied defense-spending environments.

Defense accounted for approximately 55% of FY2025 revenue, with Aerospace at roughly 27% and Cyber and Digital at 18%, making Defense the clear dominant segment. The three divisions serve differentiated end markets, but no single segment falls below 15% and the top segment exceeds half of group sales.

Approximately 80% of nine-month FY2025 revenue came from mature markets including Europe, North America, and Australia, with roughly 20% from emerging markets. Operations span more than 60 countries, and no single nation appears to exceed 30% of group revenue based on disclosed regional splits.

Adjusted EBIT margin expanded from approximately 8% in FY2020 to 12.4% in FY2025 as defense volume drove operating leverage on shared engineering infrastructure. Planned capex of €820-850 million in FY2026 for production capacity expansion confirms Thales remains in an investment phase, capping near-term margin leverage.

Defense program contracts with sovereign governments carry stable multi-year pricing, and avionics aftermarket services including maintenance and certified upgrades provide recurring mission-critical revenue with limited substitution risk. Cyber and Digital, at approximately 18% of FY2025 revenue and under integration pressure, partially offsets the stickiness of the defense and avionics base.