FRANCE ARMAMENTS 7 APR 25_EN

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This Week’s News

Army Technology - Singapore’s DSTA, Thales to develop AI tech for combat systems - 2/4/2025

Singapore’s Defence Science and Technology Agency (DSTA) and Thales have established a joint laboratory aimed at advancing AI-enabled technologies to enhance the combat systems used by the Singapore Armed Forces (SAF).

For the complete story see:

https://www.army-technology.com/news/singapores-dsta-thales-ai-tech/

Army Technology - Lorenzo Mariani to drive order intake, business development at MBDA - 2/4/2025

MBDA has appointed Lorenzo Mariani as the new executive group director sales and business development starting from 1 April 2025.

For the complete story see:

https://www.army-technology.com/news/lorenzo-mariani-mbda/

Army Recognition - Arquus Advances Modular Mobility for Future Special Forces with PLFS Grizzly at SOFINS 2025 - 2/4/2025

French manufacturer Arquus presents the PLFS Grizzly, a 4x4 tactical vehicle designed to meet the specific requirements of units operating in long-duration missions and complex environments.

For the complete story see:

https://www.armyrecognition.com/news/army-news/2025/arquus-advances-modular-mobility-for-future-special-forces-with-plfs-grizzly-at-sofins-2025

Other Stories

Janes - MBDA ups production volumes as European countries pursue rearmament - 27/3/2025

Army Recognition - France Strengthens Military Support to Ukraine with Milan and Mistral Missiles and Armored Vehicles - 27/3/2025

The Defense Post - Airbus Reveals LOAD: A Low-Cost, Missile-Armed Drone to Counter Swarms - 27/3/2025

Army Technology - Europe should “work together” on lasers, MBDA chief urges - 21/3/2025

Army Recognition - France considers purchasing Polish Piorun missiles and Baobab mine-laying systems - 20/3/2025

Media Releases

Thales - DSTA and Thales Announce AI-Driven Co-Lab to Strengthen Singapore’s Defence Systems – 4/4/2025

Naval Group - Naval Group and NORCE sign a partnership cooperation agreement to advance R&D collaboration – 3/4/2025

MBDA - Lorenzo Mariani appointed MBDA Executive Group Director Sales & Business Development – 1/4/2025

Latest Research

Data integrity assessment for maritime anomaly detection - By Clément Iphar, Cyril Ray and Aldo Napoli

Leading Companies Overview

Airbus (XPAR: AIR)

Dassault Aviation (XPAR: AM)

KNDS (KMW + Nexter)

MBDA Missile Systems

Naval Group (Formerly DCNS)

Safran (XPAR: SAF)

Thales (XPAR: HO)

Associate: Mohammad Azhar Bin Mazlan

News and Commentary

Army Technology - Singapore’s DSTA, Thales to develop AI tech for combat systems - 2/4/2025

For the complete story see:

https://www.army-technology.com/news/singapores-dsta-thales-ai-tech/

Army Technology - Lorenzo Mariani to drive order intake, business development at MBDA - 2/4/2025

MBDA has appointed Lorenzo Mariani as the new executive group director sales and business development starting from 1 April 2025.

For the complete story see:

https://www.army-technology.com/news/lorenzo-mariani-mbda/

Army Recognition - Arquus Advances Modular Mobility for Future Special Forces with PLFS Grizzly at SOFINS 2025 - 2/4/2025

French manufacturer Arquus presents the PLFS Grizzly, a 4x4 tactical vehicle designed to meet the specific requirements of units operating in long-duration missions and complex environments.

For the complete story see:

https://www.armyrecognition.com/news/army-news/2025/arquus-advances-modular-mobility-for-future-special-forces-with-plfs-grizzly-at-sofins-2025

Janes - MBDA ups production volumes as European countries pursue rearmament - 27/3/2025

MBDA has called on national governments to deepen cross-border co-operation in complex weapons design, development, and manufacturing.

For the complete story see:

https://www.janes.com/osint-insights/defence-news/defence/special-report-mbda-ups-production-volumes-as-european-countries-pursue-rearmament

Army Recognition - France Strengthens Military Support to Ukraine with Milan and Mistral Missiles and Armored Vehicles - 27/3/2025

France has committed to delivering a range of military equipment to Ukraine aimed at reinforcing the Ukrainian Armed Forces’ ability to resist Russian aggression.

For the complete story see:

https://www.armyrecognition.com/news/army-news/2025/france-strengthens-military-support-to-ukraine-with-milan-and-mistral-missiles-and-armored-vehicles

The Defense Post - Airbus Reveals LOAD: A Low-Cost, Missile-Armed Drone to Counter Swarms - 27/3/2025

Airbus has unveiled a counter-unmanned aerial system concept equipped with up to three guided missiles: the LOw-cost Air Defence (LOAD) system.

For the complete story see:

https://thedefensepost.com/2025/03/27/airbus-load-counter-drone-system/

Army Technology - Europe should “work together” on lasers, MBDA chief urges - 21/3/2025

Britain, France, Germany and Italy are each pursuing their own military directed energy weapon capabilities.

For the complete story see:

https://www.army-technology.com/news/europe-should-work-together-on-lasers-mbda-chief-urges/

Army Recognition - France considers purchasing Polish Piorun missiles and Baobab mine-laying systems - 20/3/2025

Polish Minister of Defense Władysław Kosiniak-Kamysz announced that France has expressed interest in acquiring the Polish-developed Piorun man-portable air-defense system (MANPADS) and the Baobab-K scatterable mine-laying system.

For the complete story see:

https://armyrecognition.com/news/army-news/2025/france-considers-purchasing-polish-piorun-missiles-and-baobab-mine-laying-systems

Media Releases

Thales - DSTA and Thales Announce AI-Driven Co-Lab to Strengthen Singapore’s Defence Systems – 4/4/2025

Defence Science and Technology Agency (DSTA) and Thales announce a joint lab to develop AI-enabled technologies which can augment combat systems currently in use by the Singapore Armed Forces.
With an initial focus on solutions for Counter-Unmanned Aircraft Systems (C-UAS) and Advanced Sensing applications, both parties have co-developed advanced AI algorithms that enable combat systems to efficiently handle fast-evolving drone threats.
DSTA and Thales signed a Memorandum of Understanding (MoU) in 2022 to deepen and broaden collaboration from development of smart technologies to better supportability of systems. This Co-Lab is another outcome of this MoU that will deepen our collaboration.

At the 2025 Singapore Defence Technology Summit (Tech Summit), a joint team from DSTA and Thales showcased its recent collaboration on counter-drone technologies, with tangible outcomes that can potentially be integrated into systems currently in-use with the Singapore Armed Forces (SAF).

Over the last five months, engineers from both organisations co-developed Machine-Learning (ML)-enabled software modules that reduce the rate of false alarms in drone detection. By enhancing a radar’s sensor performance with the help of AI, the algorithms offer operators and end-users heightened situational awareness that enable faster and more accurate drone detection and classification.

Through this demonstration of a new Concept of Operations (CONOPs) in enhanced radar performance in drones, the team leveraged physics-, knowledge- and data-based AI, bringing together DSTA’s deep domain knowledge of the drone ecosystem and the technical and AI skills of Thales researchers and engineers. The announcement of the Co-Lab represents the next step in the strategic cooperation between DSTA and Thales, underscoring both parties’ ambitions to support the SAF in dealing with emerging and asymmetric threats.

"The DSTA-Thales Joint Lab marks a strategic step in advancing next-generation defence technologies. By harnessing AI and advanced sensing technologies, we are adopting a more agile approach to capability development, enabling us to tackle evolving threats. This collaboration reinforces DSTA's commitment to working with global partners to co-develop advanced capabilities, ensuring our defence systems remain robust, adaptive, and future-ready," said Mr Roy Chan, Deputy Chief Executive (Operations), DSTA.

“Thales’ AI for critical systems must meet the stringent reliability, safety and security requirements for armed forces worldwide. It is a true recognition when our customers trust us to co-develop solutions alongside them that address the pain points and challenges of the end-user. We have achieved the outcomes of the MoU in a relatively short span of time, with our teams harnessing AI to create solutions with real-world implications. This Co-Lab with DSTA speaks to the years of collaboration between us and our joint commitment to provide the best technologies for the SAF and the Singapore Ministry of Defence.” said Pascale Sourisse, President and CEO, Thales International.

Thales holds deep expertise and technological mastery in radars, with air traffic management radars used by the majority of civil aviation authorities in the region, as well as operating a Radar Centre of Excellence in Singapore. As a key partner to the SAF for over 50 years, Thales also operates a Defence Hub for services in Singapore, with skilled local expertise on-hand to support DSTA and Mindef for support and maintenance of systems currently in use with the armed forces.

https://www.thalesgroup.com/en/worldwide/group/press_release/dsta-and-thales-announce-ai-driven-co-lab-strengthen-singapores

Naval Group - Naval Group and NORCE sign a partnership cooperation agreement to advance R&D collaboration – 3/4/2025

Naval Group and the Norwegian research organization NORCE have signed a Partnership Cooperation Agreement under the form of a Memorandum of Understanding (MoU) to explore future collaboration in the fields of Research and Development (R&D), particularly in digital transformation and energy.

This agreement has been signed in presence of H.E. Niels Engelschiøn, Ambassador of Norway in France, H.E. Florence Robine, Ambassador of France in Norway, Claudine Smith and Ludovic Caubet, respectively President and General Manager of the Norwegian French Chamber of Commerce, and Sigrun Daireaux, Director France of Innovation Norway.

This strategic partnership aims to leverage the complementary expertise of both organizations to support innovation in the maritime and defense sectors.

"The agreement reflects our shared ambition to drive innovation through cooperation," says Guillaume Weisrock, Naval Group's SVP for Sales and Business Development in Europe and North America. "NORCE’s multidisciplinary research capacities and close connection to Norwegian industry make them a natural partner for Research & Development as we deepen our engagement in Norway", he adds.

Naval Group committed to Norway

International naval defence player, Naval Group brings extensive experience as system designer and system integrator of the whole warship (naval architecture, development, manufacture of naval platforms, combat systems, communication, through life support, infrastructure, drones and weapons). With a strong industrial base and a long-standing tradition of delivering high-end solutions to navies worldwide, Naval Group is committed to strengthening its presence in Norway and supporting the Royal Norwegian Navy’s evolving needs. NORCE is one of Norway’s leading research institutions, with recognized expertise across a wide range of disciplines including maritime technology, energy, climate, petroleum, health, and social sciences. As a trusted stakeholder in both the maritime and defense sectors, NORCE is well-positioned to contribute to cutting-edge research and development efforts in collaboration with Naval Group.

Technologies for civilian and military applications

This MoU provides a formal framework for the two parties to explore potential R&D initiatives of mutual interest, with the goal of identifying, evaluating, and developing joint research projects. The collaboration will focus on dual-use technologies relevant to both civilian and military applications and may contribute to future capabilities for the Royal Norwegian Navy.

" We are looking forward to developing research projects with Naval Group. Their industrial expertise in the maritime sector complements our own strengths in research and development", says Kristin Margrethe Flornes, Executive VP from NORCE.

The MoU also reflects Naval Group’s intent to become a key partner to the Royal Norwegian Navy. As such, the outcomes of this collaboration could support future requirements and long-term national priorities.

https://www.naval-group.com/en/naval-group-and-norce-sign-partnership-cooperation-agreement-advance-rd-collaboration

MBDA - Lorenzo Mariani appointed MBDA Executive Group Director Sales & Business Development – 1/4/2025

Lorenzo Mariani is joining MBDA as Executive Group Director Sales & Business Development, effective 01 April 2025, succeeding to Giovanni Soccodato.

Reporting directly to the MBDA Chief Executive Officer Eric Béranger, Lorenzo Mariani also becomes a member of the Executive Committee of MBDA and Managing Director of MBDA Italia.

As Executive Group Director Sales & Business Development, Lorenzo Mariani will lead an integrated multinational team responsible for generating the order intake to sustain MBDA’s long-term performance, the understanding of customers' operational needs, and the development of the most effective solutions to meet current and future operational requirements.

As Managing Director of MBDA Italia, Lorenzo Mariani will be the legal representative of the Group in Italy; he will ensure smooth and effective relations with the Italian customers and end-users, as well as with the industrial community. With responsibility for the company operations in Italy, he will ensure continuity of the production ramp up that started in previous years in response to the current geopolitical context.

Eric Béranger, CEO of MBDA, commented: “I am pleased to welcome Lorenzo Mariani to MBDA again. He already held positions in our Group in the past and hence has a strong expertise in our business and industry to bring to our team, especially to ensure future commercial successes and development. I warmly thank Giovanni Soccodato for his personal and very effective contribution to driving MBDA during these critical times, especially to contributing to raising our backlog at an unprecedented level. I also thank him for generously sharing unique human qualities, personifying our MBDA values, which everyone has appreciated during his time with us.”

Lorenzo Mariani joins MBDA from Leonardo, where he held a series of positions with increasing responsibility, most recently as Co-General Manager and Director of Business Operations.

He previously held various positions at MBDA (Sales & Business Development and Strategy departments, respectively between 2020-2023 and 2002-2005), after having managed the Land & Naval Defence Electronics Division in Leonardo. From 2017, Lorenzo Mariani was Chief Commercial Officer of Leonardo, and additionally he was Chief Executive Officer of Leonardo International and member of the MBDA Board of Directors.

https://www.mbda-systems.com/lorenzo-mariani-appointed-mbda-executive-group-director-sales-business-development

Latest Research

Data integrity assessment for maritime anomaly detection

By Clément Iphar, Cyril Ray and Aldo Napoli

Abstract

In the last years, systems broadcasting mobility data underwent a rise in cyberthreats, jeopardising their normal use and putting both users and their environment at risk. In this respect, anomaly detection methods are needed to ensure an assessment of such systems. In this article, we propose a rule-based method for data integrity assessment, with rules built from the system technical specifications and by domain experts, and formalised by a logic-based framework, resulting in the triggering of situation-specific alerts. A use case is proposed on the Automatic Identification System, a worldwide localisation system for vessels, based on its poor level of security which allows errors, falsifications and spoofing scenarios. The discovery of abnormal reporting cases aims to assist marine traffic surveillance, preserve the human life at sea and mitigate hazardous behaviours against ports, off-shore structures and the environment.

https://www.researchgate.net/publication/341802286_Data_integrity_assessment_for_maritime_anomaly_detection

The Industry

Trends In International Arms Transfers, 2023

The volume of international transfers of major arms in 2019–23 was 3.3 per cent lower than in 2014–18 and 3.3 per cent higher than in 2009–13.
The five largest exporters were the United States, France, Russia, China and Germany.
Arms exports by the USA went up by 17 per cent between 2014–18 and 2019–23, while those by Russia went down by 53 per cent. France’s exports rose by 47 per cent and it moved just ahead of Russia to become the world’s second largest arms exporter.
The five largest arms importers in 2019–23 were India, Saudi Arabia, Qatar, Ukraine and Pakistan.
States in Asia and Oceania accounted for 37 per cent of all arms imports in 2019–23, followed by states in the Middle East (30 per cent), Europe (21 per cent), the Americas (5.7 per cent) and Africa (4.3 per cent).
Arms imports by states in Europe were 94 per cent higher in 2019–23 than in 2014–18. A total of 55 per cent of European arms imports came from the USA in 2019–23, compared with 35 per cent in 2014–18.
The largest importer in Europe was Ukraine, which received 23 per cent of the region’s total arms imports in 2019–23.

The Exporters, 2019–23

SIPRI has identified 66 states as exporters of major arms in 2019–23. The five largest exporters of arms during that period—the USA, France, Russia, China and Germany—accounted for 75 per cent of all arms exports (see figure 2 and table 1). US and French arms exports rose between 2014–18 and 2019–23, while Russian, Chinese and German arms exports fell (see figure 3). The USA and states in Western Europe together accounted for 72 per cent of all arms exports in 2019–23, compared with 62 per cent in 2014–18.

France

France narrowly overtook Russia to become the world’s second largest exporter of major arms in 2019–23. French arms exports represented 11 per cent of all arms transfers in this period, having increased by 47 per cent between 2014–18 and 2019–23. France delivered major arms to 64 states in 2019–23, but India was by far the largest recipient, accounting for 29 per cent of French arms exports.

The bulk of France’s arms exports in 2019–23 went to states in Asia and Oceania (42 per cent of arms exports) and the Middle East (34 per cent). France has been trying to expand its arms sales to other European states for many years; however, its exports to states in Europe in 2019–23 accounted for only 9.1 per cent of its total arms exports. More than half of its European arms exports (53 per cent) went to Greece, mostly made up of transfers of 17 Rafale combat aircraft.

A sharp rise in deliveries of Rafale combat aircraft accounted for most of the growth in French arms exports in 2019–23. France exported 23 Rafales in 2014–18. This increased to 94 in 2019–23, representing just under one third (31 per cent) of French arms exports in the period. A further 193 Rafales were on order for export as at the end of 2023. However, most of the aircraft France has already delivered (96 out of 117) and those on order (178 out of 193) are for states outside Europe—Egypt, India, Indonesia, Qatar and the United Arab Emirates. This highlights the challenge France still faces in selling its major arms to European states, especially in the context of the strong competition from the USA. Notably, 8 out of the 10 European states that preselected or ordered combat aircraft in 2019–23 opted for US F-16s or F-35s, with only Croatia and Greece opting for the Rafale.

In addition to building up its sales of combat aircraft, France increased its exports of military ships (and the weapons to arm them) by 14 per cent between 2014–18 and 2019–23.

The Importers, 2019–23

SIPRI has identified 170 states as importers of major arms in 2019–23. The top five arms importers—India, Saudi Arabia, Qatar, Ukraine and Pakistan— received 35 per cent of all arms imports in the period (see figure 4 and table 2). States in Asia and Oceania accounted for 37 per cent of all arms imports in 2019–23 (see figure 5), followed by states in the Middle East (30 per cent), Europe (21 per cent), the Americas (5.7 per cent) and Africa (4.3 per cent).

Europe

Arms imports by states in Europe were 94 per cent higher in 2019–23 than in 2014–18. Ukraine received 23 per cent of the region’s arms imports in 2019–23. It was, by far, the largest arms importer in Europe and the fourth largest in the world. The UK, which accounted for 11 per cent of European arms imports, and the Netherlands (9.0 per cent) were the next biggest arms importers in the region. A total of 55 per cent of European arms imports came from the USA in 2019–23, compared with 35 per cent in 2014–18. The next largest suppliers to the region were Germany and France, which accounted for 6.4 per cent and 4.6 per cent of European arms imports respectively.

Arms imports and the war in Ukraine

At least 30 states supplied major arms to Ukraine after the full-scale Russian invasion in February 2022, mostly as military aid, meaning that Ukraine was by some distance the world’s largest arms importer in the year 2023. The USA supplied 39 per cent of Ukrainian arms imports in 2019–23, followed by Germany (14 per cent) and Poland (13 per cent). To broaden Ukraine’s military capabilities, suppliers began to deliver long-range systems in 2023. For example, Poland and Slovakia donated 27 surplus combat aircraft, and France and the UK supplied missiles with a range of 300 kilometres. During the year, Belgium, Denmark, the Netherlands and Norway also started to prepare the delivery of over 50 surplus combat aircraft. Russia relies primarily on its own industry for its major arms. However, in 2022–23 it imported flying bombs from Iran and ballistic missiles from North Korea, the latter in violation of a United Nations arms embargo on North Korea.

West and Central European states

Russia’s initial invasion of Ukraine in 2014 increased the demand for arms in West and Central European states. For example, by the end of 2023 these states had a total of 791 combat aircraft and combat helicopters on order for import. After it launched the full-scale invasion in 2022, Russia began a campaign of missile attacks against Ukraine. In response, many West and Central European states supplied air defence systems to Ukraine and several placed new import orders for them or accelerated existing procurement processes. In 2023 Poland ordered 12 air defence systems from the USA, and Germany ordered a single but particularly high-value system from Israel. In 2022–23 Austria, Estonia, Latvia and Slovenia ordered air defence systems from Germany, while Finland and Slovakia ordered Israeli systems, and Lithuania and the Netherlands ordered Norwegian systems. In addition, some states ordered missiles for systems being produced domestically or to arm newly acquired imports or their existing systems. For example, in 2023 Poland and Norway ordered missiles from the UK and the USA, respectively, for their new systems, while Germany ordered 500 missiles and Romania 200, all from the USA, for their existing systems.

Source SIPRI

https://www.sipri.org/sites/default/files/2024-03/fs_2403_at_2023.pdf

The Commission for Atomic Energy and Alternative Energies (CEA)

The French Alternative Energies and Atomic Energy Commission (CEA) is a key player in research, development and innovation in four main areas: defence and security, low carbon energies (nuclear and renewable energies), technological research for industry, fundamental research in the physical sciences and life sciences.

Source: CEA

http://www.cea.fr/english

Leading Companies

Airbus (XPAR: AIR)

About Airbus

Airbus is an international reference in the aerospace sector. We design, manufacture and deliver industry-leading commercial aircraft, helicopters, military transports, satellites and launch vehicles, as well as providing data services, navigation, secure communications, urban mobility and other solutions for customers on a global scale.

With a forward-looking strategy based on cutting-edge technologies, digital and scientific excellence, we aim for a better-connected, safer and more prosperous world.

https://www.airbus.com/

Defence and Security

Airbus is a global leader in the defence sector, the largest defence supplier in Europe, and among the top 10 defence companies worldwide. It manufactures tactical and strategic airlifters, multi-role aerial tankers and advanced combat aircraft. Together, the A400M, C295, CN235, A330 MRTT and Eurofighter Typhoon make up a world-class product line operated by air forces worldwide. With decades of industrial experience behind it, Airbus consistently develops cutting-edge technologies for the most challenging missions.

In addition to designing, developing and manufacturing military aircraft, Airbus offers a broad range of services to fully support its customers.

Airbus also is the no. 3 company worldwide in secure communication platforms, delivering agile, innovative, data-driven digital services for defence and cyber security applications.

Europe’s No. 1 in defence
Among the top 10 defence companies worldwide
Number 3 worldwide in Secure Communications
World-renowned range of products including Eurofighter and A400M

https://www.airbus.com/defence.html

Airbus reports Full-Year (FY) 2024 results

766 commercial aircraft delivered
Revenues € 69.2 billion; EBIT Adjusted € 5.4 billion
EBIT (reported) € 5.3 billion; EPS (reported) € 5.36
Free cash flow before customer financing € 4.5 billion
2024 guidance achieved
Dividend proposals: dividend of € 2.00 per share; special dividend of € 1.00 per share
2025 guidance issued

Amsterdam, the Netherlands, 20 February 2025 – Airbus SE (stock exchange symbol: AIR) reported consolidated Full-Year (FY) 2024 financial results and provided guidance for 2025.

“We achieved strong order intake across all businesses in 2024, with a book-to-bill well above 1, confirming the solid demand for our products and services. We delivered on our 2024 guidance in what was a testing year for Airbus,” said Guillaume Faury, Airbus Chief Executive Officer. “We refocused our efforts on key priorities, notably the production ramp-up and the transformation of Defence and Space. We continue to pursue profitable growth and our decarbonisation ambition. The 2024 financial results and the level of confidence we have in our future performance support our proposal for an increased dividend.”

Gross commercial aircraft orders totalled 878 (2023: 2,319 aircraft) with net orders of 826 aircraft after cancellations (2023: 2,094 aircraft). The order backlog amounted to 8,658 commercial aircraft at the end of December 2024. Airbus Helicopters registered 450 net orders (2023: 393 units), with a book-to-bill ratio above 1 both in units and value highlighting strong demand for the Division’s platforms. There was also good order intake for helicopter services. Airbus Defence and Space’s order intake by value increased to a record € 16.7 billion (2023: € 15.7 billion), corresponding to a book-to-bill of around 1.4. Fourth quarter orders included 25 additional Eurofighter military aircraft for Spain.

Consolidated order intake by value decreased to € 103.5 billion (2023: € 186.5 billion) with the consolidated order book valued at € 629 billion at the end of 2024 (year-end 2023: € 554 billion). The increase in the consolidated backlog value mainly reflects the Company-wide book-to-bill of above 1, and the strengthening of the US dollar.

Consolidated revenues increased 6% year-on-year to € 69.2 billion (2023: € 65.4 billion). A total of 766 commercial aircraft were delivered (2023: 735 aircraft), comprising 75 A220s, 602 A320 Family, 32 A330s and 57 A350s. Revenues generated by Airbus’ commercial aircraft activities increased 6% to € 50.6 billion, mainly reflecting the higher number of deliveries. Airbus Helicopters’ revenues increased 8% to € 7.9 billion, reflecting higher deliveries of 361 units (2023: 346 units), a solid performance across programmes as well as growth in services. Revenues at Airbus Defence and Space increased 5% year-on-year to € 12.1 billion, mainly driven by the Air Power business. Seven A400M military airlifters were delivered (2023: 8 aircraft), including the first for Kazakhstan.

Consolidated EBIT Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – totalled € 5,354 million (2023: € 5,838 million).

EBIT Adjusted related to Airbus’ commercial aircraft activities increased to € 5,093 million (2023: € 4,818 million), with the positive impact from higher deliveries being partially reduced by investments for preparing the future.

The A320 Family programme continues to ramp up towards a rate of 75 aircraft per month in 2027. The Company is now stabilising monthly A330 production at around rate 4. Specific supply chain challenges, notably with Spirit AeroSystems, are currently putting pressure on the ramp up of the A350 and the A220. On the A350, the Company continues to target rate 12 in 2028 and is adjusting the entry-into-service of the A350 freighter variant which is now expected in H2 2027. On the A220, the Company continues to target a monthly production rate of 14 aircraft in 2026.

Airbus Helicopters’ EBIT Adjusted increased to € 818 million (2023: € 735 million), reflecting the higher deliveries, a solid performance across programmes and growth in services.

EBIT Adjusted at Airbus Defence and Space was € -566 million (2023: € 229 million), reflecting charges of € 1.3 billion in Space programmes, including € 0.3 billion in the fourth quarter resulting from the completion of the in-depth technical review.

On the A400M programme, an additional update of the contract estimate at completion was performed and a net charge of € 121 million recorded, reflecting mainly updated assumptions regarding the new contract amendment with the launch nations and OCCAR and risk in the production plan. In light of uncertainties regarding the level of aircraft orders, the Company continues to assess the potential impact on the programme's manufacturing activities. Risks on the qualification of technical capabilities and associated costs remain stable, with no major variation compared to 2023.

Consolidated self-financed R&D expenses were stable at € 3,250 million (2023: € 3,257 million).

Consolidated EBIT (reported) amounted to € 5,304 million (2023: € 4,603 million), including net Adjustments of € -50 million.

These Adjustments comprised:

€ +101 million impact related to the dollar working capital mismatch and balance sheet revaluation, of which € +247 million were in Q4. This mainly reflects the phasing impact arising from the difference between transaction date and delivery date;
€ -121 million related to the A400M, of which € -118 million were in Q4;
€ +51 million related to the gain on Airbus OneWeb Satellites, linked to the acquisition of the remaining 50% of the joint venture in Q1;
€ -40 million related to the recently announced termination of the Airbus Beluga Transport business;
€ -41 million of other costs including compliance and M&A, of which € -31 million were in Q4.

The financial result was € 121 million (2023: € 166 million), mainly reflecting the revaluation of certain equity investments and the evolution of the US dollar, partially offset by the interest result and the revaluation of financial instruments. Consolidated net income (1) was € 4,232 million (2023: € 3,789 million) with consolidated reported earnings per share of € 5.36 (2023: € 4.80).

Consolidated free cash flow before customer financing was € 4,463 million (2023: € 4,532 million), reflecting the strong performance in all businesses. Consolidated free cash flow totalled € 4,461 million (2023: € 4,096 million). The gross cash position stood at € 26.9 billion at the end of December 2024 (year-end 2023: € 25.3 billion), with a consolidated net cash position of € 11.8 billion (year-end 2023: € 10.7 billion).

The Board of Directors will propose the payment of a 2024 dividend of € 2.00 per share (2023: € 1.80 per share) and a special dividend of € 1.00 per share (2023: € 1.00 per share) to the 2025 Annual General Meeting taking place on 15 April 2025. The proposed payment date is 24 April 2025.

Outlook

As the basis for its 2025 guidance, the Company assumes no additional disruptions to global trade or the world economy, air traffic, the supply chain, the Company’s internal operations, and its ability to deliver products and services. The guidance excludes the impact of potential new tariffs on the Company’s business. The Company’s 2025 guidance includes the impact of the integration of certain Spirit AeroSystems work packages on its EBIT Adjusted and Free Cash Flow before Customer Financing, based on preliminary estimates and a closing assumption as of 1 July 2025.

On that basis, the Company targets to achieve in 2025:

Around 820 commercial aircraft deliveries;
EBIT Adjusted of around € 7.0 billion;
Free Cash Flow before Customer Financing of around € 4.5 billion.

Preliminary assumptions of the impact of the integration of certain Spirit AeroSystems work packages:

EBIT Adjusted: broadly neutral;
Free Cash Flow before Customer Financing: mid triple digit negative; Net cash broadly neutral as the compensation to be received from Spirit AeroSystems will offset the FCF negative impact.

https://www.airbus.com/en/newsroom/press-releases/2025-02-airbus-reports-full-year-fy-2024-results

Dassault Aviation (XPAR: AM)

About Dassault Aviation

Dassault Aviation is a French aerospace company that shapes the future by designing and building military aircraft, business jets and space systems.

Leader on the new-generation fighter developed within the joint European program FCAS (Future Combat Air System)

Designer and builder of the Rafale multirole fighter, capable of handling all types of missions for both air forces and naval air arms

Designer of the nEUROn combat drone, built by a European partnership

Designer and builder of the Falcon family of business jets, recognized for their handling qualities, operational flexibility, low fuel consumption and innovative solutions

Designer and builder of special Falcons for maritime surveillance, intelligence or medical evacuation missions

The hub of a strategic industrial network comprising hundreds of companies in France and international markets

Core shareholder in the Thales Group

Expertise in a number of technologies that are key to strategic autonomy

Pioneer in digital technologies and behind CATIA™, the 3D CAD/CAM system that has become a global standard

Creator of more than 100 prototypes in the last century, with over 10,000 aircraft delivered to 90 countries

2,100 Falcon jets in service
1,000 combat aircraft in service
11,400 employees, 80% in France

https://www.dassault-aviation.com/en/group/about-us/company-profile/

Dassault Aviation is part of the Dassault Group.

http://www.dassault.fr/en/index.php?docid=2274

KNDS (KMW + Nexter)

KNDS is the result of the association of Krauss-Maffei Wegmann (KMW) and Nexter, two of the leading European manufacturers of military land systems based in Germany and France. KNDS forms a Group of more than 10,000 employees, with a 2024 turnover of 3.8 billion euro, an order backlog of around 23.5 billion euro and incoming orders of 11.2 billion euro. The range of its products includes main battle tanks, armored vehicles, artillery systems, weapons systems, ammunition, robotics, military bridges, customer services, battle management systems, training solutions, protection solutions and a wide range of equipment.The formation of KNDS represents the beginning of consolidation in land defense systems industry in Europe. The strategic alliance between KMW (now KNDS Deutschland) and Nexter (now KNDS France) enhances both groups’ competitiveness and international positions, as well as their ability to meet the needs of their respective national army. In addition, it offers to its European and NATO customers the opportunity of increased standardization and interoperability for their defense equipment, with a dependable industrial base. KNDS headquarters are based in Amsterdam.

https://knds.com/en

About KMW & NEXTER

A European Leader In Land Defense

In 2015, the shareholders of KMW and Nexter founded KNDS, a franco-german association in the land defense sector. Since then, two of the foremost European suppliers of military land systems to many armies worldwide, are operating jointly, with production lines in France and Germany and industrial partnerships all over the world.

The product portfolio ranges from main battle tanks, armored vehicles, artillery systems, weapons stations, ammunition and military bridges to customer services, battle management systems, training solutions, protection solutions and a wide range of equipment.

The latest major orders were the midlife upgrade for the 322 FENNEK vehicles of the Netherlands Army, 24 LEGUAN bridge layers for the German Bundeswehr, 42 JAGUAR, 271 GRIFFON, and 364 SERVAL vehicles related to the French SCORPION program, as well as support and service activities for the French army, and CAESAR guns for the Czech republic.

https://www.knds.com/about-us/

KRAUSS-MAFFEI WEGMANN (KMW)

Krauss-Maffei Wegmann GmbH & Co. KG leads the European market for highly protected wheeled and tracked vehicles. The armed forces of more than 50 nations worldwide rely on tactical systems by KMW.

"Prioritize Safe Returns."

All KMW systems are designed for this requirement – at the core of protection, mobility and fire power. This effort is based upon decades of experience and continuous research and development. The result: a superior product portfolio for todays and tomorrows most demanding missions.

At locations in Germany, Brazil, Greece, Mexico, Singapore, the United Kingdom and the USA more than 4.000 employees develop, manufacture and support a product portfolio ranging from air-transportable, highly protected wheeled vehicles through reconnaissance, anti-aircraft and artillery systems to main battle tanks, infantry fighting vehicles* and bridgelaying systems. In addition, KMW has wide-ranging system competence in the area of civil and military simulation, as well as in command and information systems and remote-controlled weapon stations with reconnaissance and observation equipment. The armed forces of more than 50 nations worldwide rely on tactical systems by KMW.KMW: ProTECts your Mission.

https://www.kmweg.com/home.html

Nexter, Land Defense Leader in France and Europe

Nexter, a KDNS group company aims to meet the needs of French and foreign land forces by designing, developing, producing and supporting complete and innovative defense systems.

Nexter, a French land defense systems designer and integrator, proposes products now considered as standards, such as the LECLERC MBT, the armored infantry combat vehicle (VBCI) and the CAESAR artillery system. We support our customers throughout the life cycle of these products, from design to maintain in operational condition.

https://www.nexter-group.fr/en

KNDS Annual Results 2024: Another Year Of Growth Records For KNDS

Amsterdam, 27 March 2025

With an increase in its order intake of more than 40% over the previous year, the Franco-German defense group KNDS achieved all-time high results for the second year in row.

The main drivers behind KNDS' record order intake, worth a total of 11.2 billion euros, were the national and international LEOPARD 2 A8 programs, SERVAL for France, the howitzer-system RCH 155 for Ukraine, CAESAR export, BOXER for Lithuania and other SCORPION vehicles, as well as significant increased orders for ammunition and support. At the end of 2024, the KNDS order

https://knds.com/en/press-releases/knds-annual-results-2024-another-year-of-growth-records-for-knds

MBDA Missile Systems

About MBDA

MBDA is the only European group capable of designing and producing missiles and missile systems to meet the whole range of current and future needs of the three armed forces.

3 THINGS TO REMEMBER ABOUT MBDA

The only integrated defence company to provide missiles and missile systems for each branch of the armed forces (air, sea, land).
A multi-national group with more than 11.000 employees working together across France, Germany, Italy, Spain and the United Kingdom. Offices also set up in USA.
A joint venture of the 3 European leaders in aerospace and defence: Airbus (37.5%), BAE Systems (37.5%) and Leonardo (25%).

https://www.mbda-systems.com/about-us/

MBDA – Co-operation is our strength

15/03/2023

MBDA held its annual press conference in Paris today, 15 March, and presented the group’s achievements in 2022 and the challenges to come.

Éric Béranger, CEO of MBDA, said: “At MBDA, co-operation is our strength: the union of countries, of cultures, of expertise and of technology. Co-operation is what allowed us to deliver our strong performance in 2022. Today more than ever, in this deeply troubled international context, we can see how it is through co-operation that we will prevail, support the reinforcement of our countries’ sovereignty, and help ensure the safety of our people.”

Co-operation in programmes and technology

MBDA contributes to European air defence security through the comprehensive solutions offered to counter the whole range of air threats, from long-range ballistic missiles to very small unmanned aircraft. Air defence systems operating the Aster missiles are deployed in France, Italy and the UK, on both ships and on land systems such as the SAMP/T, which was recently sent to Ukraine’s borders. Its next generation, SAMP/T NG, continued to advance in 2022 and will be delivered to Italy and France by 2025 and available for export in 2026. Co-operation in air defence is also built around another emblematic co-operation programme between Italy and the UK, CAMM and CAMM-ER, for which in 2022 MBDA received an order for the Italian Army and the Italian Air Force. Progress was also made on Sky Warden, our flagship solution to counter unmanned aerial systems (C-UAS), a modular scalable system designed to integrate and control multiple sensors and effectors. Sky Warden can address all threats from small aircraft to very small drones, of which we have seen growing use of recently in conflicts in Europe and elsewhere.

In the field of deep strike and heavy anti-ship weapons, 2022 saw the next phase launched of the Future Cruise/Anti-Ship Weapon (FC/ASW) between France and the United Kingdom, focusing on the co-ordinated development of the programme, and re-confirmed last week during the Franco-British summit in Paris. Future air combat also stands as a priority for MBDA, being involved in the two major programmes: Germany, France and Spain continued to advance on the Future Combat Air System (FCAS) project for which MBDA is responsible for new Remote Carrier effectors and brings its expertise on connected collaborative combat; and with the Global Combat Air Programme, backed by the UK, Italy and Japan, for which MBDA is the effects domain leader. On the innovation side, good progress was made in 2022 on laser directed energy weapons, with the recent acquisition of Cilas in France, the successful trials of Dragonfire in the UK and of the new tracking technology for high-energy laser (HEL) in Germany.

Co-operation of cultures and expertise

MBDA was founded on the strong willingness of nations to co-operate, this is our strength and is what makes us successful. It is through the interaction of different cultures, different know-how and different ways of working, while respecting national priorities, that MBDA developed itself as an integrated European company. Investment in people to drive innovation and delivery remains a core focus for MBDA, with a company record-breaking 1,570 new people joining the group in 2022, and a plan to recruit more than 2,000 new employees in 2023.

Outside our domestic countries, among the major export contracts signed in 2022 were the weapon packages for the UAE’s new Rafale aircraft, the weapon packages for Greece’s new frigates and Rafale aircraft, and the CAMM missile contract in Poland.

Performance

In total, revenues in 2022 were €4.2 billion, consistent with 2021’s record level. Order intake reached a new record total of €9 billion in 2022, growing MBDA’s order backlog to €22.3 billion.

https://newsroom.mbda-systems.com/mbda-co-operation-is-our-strength-8893/

Naval Group (formerly DCNS)

About Naval group

NAVAL GROUP IS THE EUROPEAN LEADER IN NAVAL DEFENCE.

As an international high-tech company, Naval Group uses its extraordinary know-how, unique industrial resources and capacity to arrange innovative strategic partnerships to meet its clients’ requirements.

The group designs, produces and supports submarines and surface ships. The group also provides services for naval shipyards and bases. In addition, the group offers a wide range of marine renewable energy solutions.

Aware of its corporate social responsibilities, Naval Group is a member of the United Nations Global Compact. The group reports revenues of €3.6 billion and has a workforce of 14,670employees (data for 2018).

https://www.naval-group.com/en/group/en-profil/presentation/

Naval Group Achieves a Record Level of Orders In 2019

21.02.2020

3 billion euros of order intake (+44% vs 2018), including 3 billion internationally, taking the order book to 15 billion euros
Sales of 3.7 billion euros (+3% vs 2018)
EBITA up to 282 million euros, taking operating profitability up to 7.6%
Robust outlook for 2020

Naval Group’s Board of Directors met on 20 February 2020 to review the financial statements for the 2019 reporting period closed on December 31 st .

Main consolidated data

(in millions of euros, IFRS standards)	2019	2018	Variation
Order intake	5,306	3,686	+44%
Order book	15,062	13,830	+9%
Sales	3,712	3,608	+3%
EBITA [1] Operating profit (EBITA/sales) in %	282.0 7.6%	265.9 7.4%	+6% +0.2 pt
Consolidated net income – group share	188.2	178.2	+6%

[1] Earnings before interest, tax and amortisation

Commenting on these results, Hervé Guillou, Chairman and CEO of Naval Group, declared: “Naval Group once again confirms the soundness of its strategic position as an industrial prime contractor, designer and integrator of whole warships and combat systems, as well as the good progress of its development plan. The operational milestones, both in France and internationally, have all been met. Among the most striking illustrations, we are proud to have launched the Suffren, the first next-generation SSN, and to have cut the first metal sheet for the defence and intervention frigate (FDI), a digital frigate intended for the French Navy. Internationally, we have delivered the Khanderi to the Indian Navy but also signed the design contract for the Australian Future Submarine program. We are benefiting from a dynamic market situation and, despite increasingly fierce competition, we won bids for more than twenty ships in five new countries. We also play a pivotal role in European alliances and have set up Naviris, a joint company with Fincantieri, our long-standing Italian partner. Our operational and financial performance enables us to guarantee our ability to finance the future long-term growth of the company.”

Frank Le Rebeller, Senior Executive Vice President Finance, Legal, Purchasing and Real Estate, added: “Order intake in 2019 reached record levels. The results for the 2019 reporting period (produced according to IFRS standards and in particular the IFRS 15 standard since 2018), for the fifth consecutive year, show progress in sales, which stand at 3.7 billion euros, along with an improvement of operating profitability, which has shown a steady increase since 2015 and this year reached 7.6%. Consolidated net income (group share) amounts to nearly 190 million euros, thus raising our equity to 1.2 billion euros. These results are slightly over than our targets. They reflect a solid financial situation, more particularly characterised by levels of profitability in line with our targets and a robust level of equity that has been reconstituted over the past four years. We continued our overall investment efforts, which increased to nearly 480 million euros, in particular in innovation, R&D and digitisation. Our development is creating significant need for recruitment and in 2019 we welcomed 1,500 new colleagues.”

Order intake: 5.3 billion euros (+44% vs 2018), including 3 billion internationally, raising the order book to 15 billion euros

The order intake over the 2019 reporting period amounts to 5.3 billion euros, boosting the order book which now stands at 15 billion euros. Orders recorded in France and overseas for the 2019 reporting period benefited all sectors. In France, in new construction, the main notifications concerned the sixth nuclear-powered attack submarines (SSN) for the Barracuda program. The main contract awarded for new constructions internationally is the program for twelve minehunters and their toolboxes for the Belgian and Dutch navies. Finally, regarding services, several multi-year availability contracts were notified, notably the routine maintenance contract for the ballistic-missile submarines (SSBN) for 2020-2025, as well as the maintenance contract for the Egyptian Navy.

For the year 2019, the book-to-bill ratio (order intake divided by sales), which measures the order book’s renewal rate, stands at 1.4, and at 1.2 for the past three years.

Activity: increased sales

The consolidated sales amount to 3,712 million euros. Its 3% increase over 2018 was driven by the major national programs, mainly the Barracuda program, the multimission frigates program and the defence and intervention frigates program. The Australian program also contributed to Naval Group sales. Finally, services represented a key component, with a 41% share. For France, they include in-service support for first rank surface ships and nuclear submarines of the French Navy. Internationally, they include the periodic docking for maintenance of the Malaysian submarines, as well as the adaptation and modernisation of the Bouchard corvette for the Argentinian Navy, delivered two months ahead of schedule.

Profitability: significant growth of EBITA and operating profit

EBITA (earnings before interest, tax and amortisation) totalled 282 million euros. Its progress compared to 2018 drives an increase in operating profitability, which has risen from 7.4% in 2018 to 7.6% in 2019, placing Naval Group as the leader of the naval defence sector in Europe.

This progression shows the operational improvement of all naval programs and the effectiveness of the improvement plans undertaken for over five years.

Group net income is 188.2 million euros, up by almost 10 million euros compared to 2018. This result increases the group’s consolidated equity to 1.2 billion euros.

Strong prospects for 2020

In 2019, Naval Group hired more than 1,500 new staff, taking the group’s total workforce to more than 15,000, presenting an increase of nearly 10% compared to 2018 levels. This trend will continue thanks in particular to numerous initiatives such as the opening of the arrangement designer school on the Cherbourg site and the Naval Industries Campus, which has been launched last November by the French Minister for Education.

Naval Group is also accelerating its investments, worth nearly 480 million euros, specifically targeting open and collaborative innovation, the development of international activities and trade relations, as well as industrial and IT equipment.

Lastly, thanks to its increased capacity to invest, Naval Group will pursue the internationalisation of its activity. This deployment will more specifically be driven by Naviris, its joint-venture with Fincantieri, which will allow a joint response to some calls for tender and sharing of R&D activities for surface ships.

The prospects for 2020 are robust, with expected sales growth of about 5% and a rise in consolidated net income (group share) of about 10%.

https://www.naval-group.com/en/news/naval-group-achieves-a-record-level-of-orders-in-2019/

SAFRAN S.A. (XPAR: SAF)

About Safran

Safran is an international high-technology group, operating in the aviation (propulsion, equipment and interiors), defense and space markets. Safran has a global presence, with more than 92,000 employees and sales of 21 billion euros in 2018. Working alone or in partnership, Safran holds world or European leadership positions in its core markets. Safran undertakes Research & Development programs to meet fast-changing market requirements, with total R&D expenditures of around 1.5 billion euros in 2018.

Aviation

Active on the engines, aircraft interiors and equipment markets, Safran offers a comprehensive range of solutions to civil and military airframers as well as airlines.

Aircraft engines and nacelles
Aerosystems
Aircraft Interiors
Engine equipment
Landing systems
Electrical systems
Avionics
Engineering

Space

For more than 50 years, Safran has been facilitating access to space, a strategic sector for State sovereignty.

Satellite propulsion and equipment
Launch vehicles
Space Optics

Defense

Through a wide range of products, Safran caters to the needs of air, land and sea armed forces in numerous countries worldwide.

Navigation systems
Missile propulsion
Guidance
Optronics
Warfighter modernization programs
Drones
Avionics

https://www.safran-group.com/group-0

Safran reports its full-year 2024 results

Record levels reached for revenues, profits and free cash flow 2025 outlook revised upwards: profits and free cash flow raised

Paris, February 14, 2025

FY 2024 adjusted data

Revenue: €27,317 million (+17.8%)
Recurring operating income: €4,119 million (+30.1%), 15.1% of sales
Free cash flow: €3,189 million
Dividend per share €2.90, subject to shareholders’ approval

FY 2024 consolidated data

Revenue: €27,716 million
Recurring operating income: €4,186 million
Free cash flow: €3,189 million

FY 2025 outlook (vs preliminary outlook given on Dec. 5th)

Revenue: up ~10%
Recurring operating income: €4.8 - €4.9 billion (vs. €4.7 - €4.8 billion)
Free cash flow: €3.0 - €3.2 billion (vs. €2.8 - €3.0 billion)

The Board of Directors of Safran (Euronext Paris: SAF), under the Chairmanship of Ross McInnes, at their meeting in Paris on February 13, 2025, adopted and authorized the publication of Safran’s financial statements and adjusted income statement for the full-year period ended December 31, 2024.

Foreword

All figures in this press release represent adjusted data, except where noted. Please refer to the definitions and reconciliation between full-year 2024 consolidated income statement and adjusted income statement. Please refer to the definitions contained in the footnotes and in the Notes on page 10 of this press statement.
Organic variations exclude changes in scope and currency impacts for the period.

CEO Olivier Andriès said: “Thanks to the efforts of our teams and despite persistent supply chain difficulties as well as residual inflationary pressures, Safran delivered another remarkable year with revenues, profits and cash flows reaching record levels. The operating margin grew by 150 basis points to 15.1% of sales, driven especially by strong aftermarket activity across the board, a relentless focus on operational excellence and the return to profitability of Aircraft Interiors. In 2025, meeting our airframer and airline customers’ requirements and improving industrial performance in both original equipment and MRO remain our priorities to continue our profitable growth. In terms of capital deployment, we expect to close the Collins' actuation and flight control activity by mid-year, propose to our forthcoming shareholder’s Annual Meeting a €2.90 dividend per share, and initiate the execution of our €5 billion share buyback program.”

Full-year 2024 results

Revenue

2024 revenue stood at €27,317 million, up by 17.8% compared to 2023 (+17.1% on an organic basis). Change in scope was €136 million 1 . Currency impact was €12 million, with an average €/$ spot rate of 1.08 in 2024 (stable compared to 2023). €/$ hedge rate in 2024 stood at 1.12 (1.13 in 2023).

As for organic revenue per division:

Propulsion was up by 15.0% driven by civil aftermarket. Supported by strong air traffic momentum, civil aftermarket (in $) increased by 24.9% (21.1% in Q4 2024). Referring to our new civil engines aftermarket indicators, Services (in $) were up by 38.0% led by LEAP rate per flight hour (RPFH) contracts and Spare parts (in $) were up by 16.5%, with growth mainly attributable to CFM56 and high-thrust engines. 1,407 LEAP engines were delivered compared to 1,570 in 2023, down (10)% with 378 units delivered in Q4 2024. Lower volume was more than offset by customer mix and price. On December 9, the FAA and EASA certified the High Pressure Turbine hardware durability kit for the LEAP-1A engines that power A320neo. Military engine revenue increased year-over-year, reflecting a higher level of services and a favorable OE customer mix, while M88 deliveries remained stable, with 40 deliveries compared to 42 in 2023. Finally, helicopter engine revenue growth was led by higher turbine deliveries (notably Arriel) and service by the hour contracts.
Equipment & Defense was up 17.7%, supported by all businesses. Driven by increased air traffic notably in the widebody market, aftermarket services rose by 16.8% with growth across the board, particularly in landing systems, support for defense and avionics activities, and electrical & power systems. OE sales grew 18.3%, boosted by higher volumes in nacelles (G700 entry into service in H1, A320neo) and electrical systems (787 and A320neo). In defense activities, the substantial growth was primarily led by guidance systems, optronics and onboard systems.
Aircraft Interiors saw a solid 25.2% growth, although still 5% below 2019 levels. This growth reflects the recovery of the widebody market and airlines' eagerness for cabin retrofitting. Aftermarket activities grew by 26.3% driven by both Cabin and Seats (mainly spare parts). OE sales growth of 24.5% is primarily attributed to Seats, with a significant increase in Business class seat deliveries (2,482 units in 2024 vs 983 in 2023).

Research & Development

Total R&D, including R&D sold to customers, reached €1,980 million, compared with €1,818 million in 2023.

Research & Technology (R&T) self-funded expenses at €671 million (€598 million in 2023) mainly geared towards decarbonization through notably the RISE (Revolutionary Innovation for Sustainable Engines) technology development program;
Development expenses at €677 million (€618 million in 2023).

The impact on recurring operating income of expensed R&D was €1,128 million (€993 million in 2023), with both higher capitalized R&D and related amortization, and representing 4.1% of sales (4.3% of sales in 2023).

Recurring operating income

In 2024, recurring operating income reached €4,119 million, representing a substantial increase of +30.1% (+27.0% organic). This robust performance was mainly due to growth in services across the board and a relentless focus on operational excellence. It includes scope changes of €15 million and a favorable currency impact of €82 million. Operating margin stood at 15.1% of sales, up 150bps (13.6% in 2023).

Per division:

Propulsion recurring operating income reached €2,819 million. Operating margin stood at 20.6% of sales, up by 0.5pt, supported by strong civil aftermarket activity benefitting from higher spare parts sales for CFM56. The share of LEAP RPFH contracts increased in 2024 with no margin recognition. As announced during the CMD’24, Safran will start recognizing profit for the LEAP-1A in 2025. Growth in military services and in both OE and services for helicopter engines also contributed to the overall performance.
Equipment & Defense recurring operating income stood at €1,298 million. At 12.2% of sales, operating margin increased by 1.0pt driven by increased OE volumes, particularly in nacelles and Defense activities, as well as growth in services, notably landing gear and carbon brakes. Both OE and services for Aerosystems contributed positively, thanks to Fluid and Fuel systems and Safety systems.
Aircraft Interiors posted a positive recurring operating income of €27 million, representing a substantial improvement of €143 million from 2023. Cabin’s profitability was supported by a strong level of activity in services notably for galleys as well as Water & Waste activities, and by impact of past restructuring. Seats strongly improved in 2024 reaching breakeven thanks to both services and OE volume. Continued efforts in the industrialization and engineering process are bearing fruits. Additionally, Safran Passenger Innovations made a positive contribution to recurring operating income, largely due to in-flight entertainment (IFE) products.

Net income

In 2024, one-off items were €6 million including capital gain on asset disposal (Roxel), impairment charges for certain programs as well as other costs such as restructuring and integration expenses.

Net income (Group share) was up by 51% at €3,068 million in 2024 (basic EPS of €7.37 and diluted EPS of €7.29), compared with €2,028 million in 2023 (basic EPS of €4.85 and diluted EPS of €4.70).

This includes:

Financial income of €23 million, including positive net financial interest of €157 million (returns on cash investments exceed cost of debt) and €(106) million exchange revaluation of positions in the balance sheet;
Tax expense of €(987) million (23.8% apparent tax rate).

The reconciliation between 2024 consolidated income statement and adjusted income statement is provided and commented in the Notes on page 11.

Free cash flow

Free cash flow of €3,189 million was driven by the increase in cash flow from operations, higher capital expenditures of €(1,543) million (€(1,325) million in 2023) directed notably towards MRO production capacity and low carbon initiatives.

The slight favorable working capital change (€7 million) reflects higher customer advance payments (notably Rafale) and deferred income, offset by inventory level build-up in line with revenue growth.

Net debt and financing

As of December 31, 2024, Safran’s balance sheet exhibits a €1,738 million net cash position (vs. €374 million as at December 31, 2023), as a result of a strong free cash flow generation, partially offset by dividend payment (of which €911 million to shareholders of the parent company) and €1,320 million of share repurchases including €750 million for cancellation.

Cash and cash equivalent stood at €6,514 million (vs €6,676 million as at December 31, 2023). Gross debt stood at €4,776 million (vs €6,302 million as at December 31, 2023). During the year, Safran reimbursed $505 million of USPP, €200 million of Euro Private Placement and proceeded with the early redemption of its bonds convertible into shares initially due 15 May 2027 (2027 OCEANEs), resulting in a net debt positive impact of €961 million and no dilution impact for existing shareholders.

Consolidated data (IFRS)

Consolidated revenue for 2024 was €27,716 million compared with €23,651 million in 2023. In 2024, the difference between consolidated revenue and adjusted revenue reflects a €399 million positive impact resulting from foreign currency hedging transactions.

Consolidated recurring operating income for 2024 was €4,186 million compared with €3,309 million in 2023.

The difference between consolidated recurring operating income and adjusted recurring operating income reflects:

Amortization charged against intangible assets measured when allocating the purchase price for business combinations, representing €327 million;
A €394 million positive impact resulting from foreign currency hedging transactions.

Consolidated net income for 2024 was €(667) million (€3,444 million in 2023). It includes changes in the fair value of instruments hedging future cash flows that will be recognized in profit or loss in future periods of €(4,670) million (excluding tax). Consolidated basic EPS for 2024 was €(1.60) (diluted EPS of €(1.60) compared with €8.24 in 2023 (diluted EPS of €8.07).

Currency hedges

The hedge book amounts to $54.7 billion in December 2024 ($54.0 billion in September 2024).

2024 hedge rate of $1.12, for a net exposure of $12.4 billion.
2025 to 2027 are fully hedged: targeted hedge rate of $1.12, for an estimated net annual exposure of $14.0 billion.
2028 is partially hedged: $12.7 billion hedged, at a targeted hedge rate of $1.12, out of an estimated net exposure of $14.0 billion.

Dividend

For fiscal year 2024, a dividend 2 payment of €2.90 per share will be proposed to the shareholders’ vote at the Annual General Meeting on May 22, 2025. It represents an increase of 32% over the prior year dividend (€2.20) and 40% payout ratio on the adjusted net income. It demonstrates Safran’s confidence and commitment to regular shareholder returns.

Share repurchase programmes

2024

In 2024, Safran purchased c.€1.3 billion worth of its own shares in several tranches (6.5 million shares):

Hedging of the 2028 OCEANEs: 2.1 million shares (out of c.4 million), completing the hedging of the potential dilution relating to the 2028 OCEANE.
Performance shares & free shares grant: 0.7 million shares.
Share buyback for cancellation: 3.6 million shares (representing €750 million), all cancelled on December 12, 2024. The cancellation of these shares resulted in a 0.86% accretion of equity ownership percentages.

At December 31, 2024, Safran’s share capital comprises 423,632,587 shares of which 6,857,467 treasury shares (1.6% of capital).

2025 onwards

During its Capital Markets Day held on December 5, 2024, Safran announced a new €5 billion share buyback for cancellation from 2025 to 2028 3 .

In that context, on January 9, 2025, Safran launched a first tranche for a maximum amount of €350 million to be carried out from January 10, 2025 and no later than April 14, 2025.

Portfolio management

Divestment of Safran’s 50% share of Roxel to MBDA on December 19, 2024.
Agreement signed on December 20, 2024 with Woodward for the divestment of Safran’s electromechanical actuation business based in the United States, Mexico and Canada. The transaction is another important milestone towards the closing of the acquisition by Safran of Collins Aerospace’s actuation and flight control activities. It is expected to be closed in mid-2025, once all customary terms and conditions of the agreement are met and regulatory requirements are fulfilled, and subject to concomitant completion of Collins Aerospace’s actuation and flight control activities acquisition by obtaining associated merger control approvals.
As part of the Collins Aerospace’s actuation and flight control activities acquisition process, following the approval by the Committee on Foreign Investment in the United States (CFIUS) of the acquisition project by decision on January 16, 2025, all approvals related to foreign investments have been obtained (including in Italy and United Kingdom).The completion of Collins Aerospace’s actuation and flight control activities acquisition remains subject to obtaining the required merger control approvals.
On January 19, 2025, Safran closed the acquisition of the US Company CRT (Component Repair Technologies), a world leader in the repair of aircraft engine parts, based in Ohio, USA. This acquisition reflects Safran’s plan to strengthen its maintenance, repair and overhaul (MRO) capabilities in the Americas.

Full-year 2025 outlook

Safran raises its outlook and now expects to achieve for full-year 2025 (at constant scope, i.e. excluding the contemplated acquisition of Collins Aerospace’s actuation & flight controls business):

Revenue growth: around 10%;
Recurring operating income: €4.8 - €4.9 billion (versus €4.7 - €4.8 billion previously);
Free Cash Flow €3.0 - €3.2 billion (versus €2.8 - €3.0 billion previously), of which €(380) - €(400) million estimated impact from the French corporate surtax (versus €(320) - €(340) million) and subject to payment schedule of some advance payments and the rhythm of payments by state-clients..

This outlook is based notably, but not exclusively, on the following assumptions:

LEAP engine deliveries: up 15% to 20% compared to 2024;
“Spare parts” revenue (in USD): up HSD+ 4 (versus up MSD-HSD 5 );
“Services” revenue (in USD): up mid-teens;
€/$ spot rate of 1.10;
€/$ hedge rate of 1.12.

The main risk factor is the supply chain production capability. In addition, this 2025 outlook excludes any potential impact of new tariffs implementation.

https://www.safran-group.com/pressroom/safran-reports-its-full-year-2024-results-2025-02-14

THALES (XPAR: HO)

About Thales

Thales (Euronext Paris: HO) is a global leader in advanced technologies specialising in three business domains: Defence & Security, Aeronautics & Space and Cyber & Digital. It develops products and solutions that help make the world safer, greener and more inclusive.

The Group invests close to €4 billion a year in Research & Development, particularly in key innovation areas such as AI, cybersecurity, quantum technologies, cloud technologies and 6G.

Thales has close to 81,000 employees in 68 countries. In 2023, the Group generated sales of €18.4 billion.

https://www.thalesgroup.com/en

Thales reports its 2024 full-year results

Order intake: €25.3 billion, up 9% (+6% on an organic basis 1 )
Sales: €20.6 billion, up 11.7% (+8.3% on an organic basis)
Adjusted EBIT 2 : €2,419 million, up 13.4% (+5.7% on an organic basis)
Adjusted net income, Group share 2 : €1,900 million, up 7%
Consolidated net income, Group share: €1,420 million, up sharply by 39%
Free operating cash flow from continuing operations 2,3 : €2,142 million, up 9%
Free operating cash flow 2 : €2,027 million, stable against 2023
Dividend 4 of €3.70 per share, representing 40% of Adjusted net income, Group share
Non-financial performance: steady progress towards medium to long-term targets
2025 objectives:
- Book-to-bill 5 above 1
- Organic sales growth of between +5% and +6%, corresponding to sales between €21.7 billion and €21.9 billion
- Adjusted EBIT margin between 12.2% and 12.4%

Thales’s Board of Directors (Euronext Paris: HO) met on March 3, 2025 to review the 2024 financial statements

“2024 was once again a year of strong profitable growth for Thales. Thales, a world leader in advanced technologies in Defence, Aerospace, Cybersecurity and Digital, maintained excellent sales momentum throughout the year, achieving a record order intake of more than €25 billion. The record order book provides unprecedented visibility for all our activities.

Sales exceeded the €20 billion mark with organic growth of 8.3%, above expectations. Defence activities, underpinned by an ongoing increase in the Group's production capacity, the technological excellence of our products and the commitment from all our colleagues, contributed in particular to this performance.

Thales also demonstrated once again its ability to generate profitable growth, with an increase in EBIT in absolute terms and as a percentage, reflecting the strength of its operating leverage.

Thanks to its unique business model based on world-class products, systems and services, Thales generated free operating cash flow of more than €2 billion.

Non-financial performance was also remarkable in 2024. The validity of our CSR strategy was acknowledged as Thales joined the CAC 40 ESG index in 2024.

This historic performance is the result of the unfailing commitment of our 83,000 employees, and I would like to thank them sincerely for their dedication to our clients. We are starting 2025 with confidence and determination and a positive outlook for the vast majority of our activities. Thales presented its new strategic roadmap in November 2024. By drawing on its unique leadership positions serving growing markets and its ability to innovate and anticipate technological breakthroughs, the Group affirms its ambition to deliver accelerated, profitable and sustainable growth over the coming years, starting in 2025.” Patrice Caine, Chairman & Chief Executive Officer

Key Figures

Order intake for the 2024 financial year increased by 9% compared with 2023 at €25,289 million and by +6% on an organic basis (i.e. at constant scope and exchange rates). Commercial performance was once again supported by strong demand in the Defence segment and by continued sustained momentum in the Aerospace segment. As at 31 December 2024, the consolidated order book amounted to nearly €51 billion, a record level, up by nearly €5.4 billion compared with the end of 2023.
Sales totaled €20,577 million, up 11.7% from 2023 (+8.3% in organic growth). This robust growth reflects in particular the solid performance of the Defence business throughout the year.
Adjusted EBIT 7 stood at €2,419 million in 2024 (11.8% of sales), compared with €2,132 million (11.6% of sales) in 2023, an increase of 13.4% (+5.7% organic change).
At €1,900 million, Adjusted net income, Group share 7 was up +7% compared to 2023.
Consolidated net income, Group share, stood at €1,420 million, up sharply by +39% from 2023. This increase can be explained notably by the recognition in 2023 of a non-current and non-recurring expense linked to the implementation of insurance coverage for the Group's commitments under the Thales UK Pension Scheme. These commitments were transferred to Rothesay at the end of 2023.
Free operating cash flow from continuing operations 7,9 amounted to €2,142 million, compared with €1,968 million in 2023. Including the contribution of discontinued operations, free operating cash flow 7 amounted to €2,027 million, compared with €2,026 million in 2023. Calculated on the basis of the scope of continuing operations, the cash conversion ratio of Adjusted net income, Group share, into operating free cash flow was 114%. This once again exceptional performance, which saw the cash conversion ratio exceed 100% for the fifth consecutive year, reflects the excellent momentum of new orders, the phasing effects on cash inflows related to contracts’ execution and the continued Group's mobilization of its CA$H! plan aimed at optimizing this conversion ratio.
In this context, the Board of Directors decided to propose the payment of a dividend of €3.70 per share, corresponding to a payout ratio of 40% of the Adjusted net income, Group share. An interim dividend of €0.85 per share was paid on December 5, 2024. The balance of €2.85 will be paid on May 22, 2025.

Order intake

Order intake for the 2024 financial year totaled €25,289 million, up 9% from 2023 in total change and up +6% at constant scope and exchange rates 11 . For the fourth consecutive year, the order intake was more than 20% higher than sales (book-to-bill). Thebook-to-bill ratio was 1.23, flat against 2023, and 1.28 excluding the Cyber & Digital business, where the order intake is structurally very close to sales.

In 2024, Thales signed 35 large orders with a unit value of over €100 million, representing a total of €8,674 million:

Four large orders booked in Q1 2024:
- The entry into force of the third phase of the order placed by Indonesia in 2022 for the purchase of 42 Rafale aircraft (18 aircraft and support services);
- Phased contract with the French Defence Procurement Agency (DGA) to develop the next generation of sonars to equip French nuclear-powered ballistic-missile submarines (SSBN);
- Order of an aerial surveillance system for a military customer in the Middle East;
- Second tranche of the contract signed in 2023 between France and Italy for the production of 400 ASTER B1NT ground-to-air missiles.
Eight large orders booked in Q2 2024:
- Order for a next generation cloud native “FLYTEDGE” InFlight Entertainment System for a major worldwide airline;
- Order by SKY Perfect JSAT to Thales Alenia Space of JSAT-31, a new generation of satellite reconfigurable in orbit using Space INSPIRE technology;
- Exomars 2028, a contract signed between industrial prime contractor Thales Alenia Space and the European Space Agency (ESA) to relaunch the European space mission dedicated to the exploration of the Red Planet;
- Order of two new F126 frigates by the German Navy. This additional contract brings the number of F126 frigates acquired by the German Navy to six in the past four years;
- Order by the Dutch Ministry of Defence of seven additional Ground Master 200 multi-mission compact radars;
- Service contract for the maintenance of the Royal Australian Navy fleet;
- Order by an Asian customer of latest-generation Ground Master 400 Alpha long-range air surveillance radars;
- Order by France’s Joint Munitions Command (SiMu) of tens of thousands of 120mm rifled ammunition.
Seven major orders recorded in Q3 2024:
- Notification by the DGA of the second tranche of the development of the future RBE2 XG radar for the Rafale F5;
- Order for the supply of anti-submarine warfare systems for the first phase of the construction of six HUNTER-class frigates for the Royal Australian Navy;
- Order for the renovation of an air traffic management system;
- Order from the UK Ministry of Defence for the supply of Lightweight Multi-role Missiles (LMM) to strengthen Ukraine's air defence capabilities;
- Order of LMM for the British armed forces;
- Order for the supply of Ground Fire multifunction radar and engagement modules following France’s acquisition of seven SAMP/T NG air defence systems;
- Order for the supply of communications, vetronics, navigation and optronics equipment for vehicles in the French Army's SCORPION program.
Sixteen large orders booked in Q4 2024:
- Order for the supply of a satellite for the European Space Agency’s EnVision scientific mission to understand the planet Venus;
- Contract amendment signed with OHB System for the payload of the third satellite of the European CO2M mission focused on CO ₂ emissions generated by human activity;
- Amendment to the contract with the European Space Agency for the development of the ESPRIT communications and refueling module for the future lunar space station, Gateway;
- Order for the development of the world’s first quantum key distribution (QKD) system from geostationary orbit, in collaboration with Hispasat;
- Contract with the Mohammed Bin Rashid Space Centre to develop the Emirates Airlock Module on board the future lunar space station Gateway;
- Entry into force of the contract for the supply of 12 Rafale to Serbia;
- Order from Naval Group for the supply of equipment for the submarine delivery contract in the Netherlands;
- Order under the AJISS contract to provide In-Service Support to Royal Canadian Navy ships;
- Order for the development and production of 430 new-generation MICA-NG interception, combat and self-defence missile seekers;
- Order from the UK Ministry of Defence for the development and preparation of large-scale production of STARStreak HVMs (High Velocity Missiles) for the armed forces;
- Order from the French Air Navigation Services Directorate (DSNA) aimed at improving the 4-Flight air traffic management system;
- Amendment to the CONTACT contract with the DGA providing the armed forces with a range of software-defined radios designed for collaborative combat;
- Order from the UK Ministry of Defence to ensure the permanence and maneuverability of the Royal Navy’s operational communications;
- Order from the DGA as part of the SYRACUSE IV program to equip the French army's SCORPION vehicles with Thales' secure satellite communications solution;
- Order from the DGA for the design, delivery and maintenance of a resilient communication system;
- Order from the DGA to produce an encryption key management and distribution system and key injector for the Ministry of the Armed Forces.

With a total amount of €16,615 million, order intake with a unit value of less than €100 million continued to record favorable momentum.

Geographically 12 , order intake in mature markets amounted to €19,010 million, very close to that recorded in 2023, which though included the £1.8 billion MSET contract in the United Kingdom. Sales momentum elsewhere was also solid, particularly in the rest of Europe (up by 16% on an organic basis) and in Australia and New Zealand (up by 13% on an organic basis). Order intake in emerging markets was up sharply in 2024, amounting to €6,279 million (+39% at constant scope and exchange rates) thanks to continued strong momentum in the Near and Middle East (with an organic increase of 80%).

Order intake in the Aerospace segment totaled €6,434 million compared to €5,606 million in 2023 (+14% at constant scope and exchange rates). This solid growth reflects several trends.

The different segments of the Avionics market continued to record sustained demand in 2024;
The Space business posted sustained growth in order intake, including five orders with a unit value of more than €100 million recorded in the fourth quarter, four of which in OEN (Observation, Exploration & Science and Navigation) activities.
At December 31, 2024, the segment’s order book stood at €10.5 billion, up 13% from 2023.

At €14,723 million compared to €13,944 million in 2023, order intake in the Defence segment set a new record (+5% at constant scope and exchange rates). The book-to-bill ratio was 1.34, above 1.2 for the sixth consecutive year. This high level is explained by continued strong demand in all activities, with twenty-seven contracts with a unit value of more than €100 million recorded in 2024. The segment’s order book reached a new record at €39.2 billion (up 12%), corresponding to 3.6 years of sales, offering strong visibility for the years ahead.

At 4,032 million, order intake in the Cyber & Digital segment was structurally very close to sales as most business lines in this segment operate on short sales cycles. The order book is therefore not significant.

Sales

Sales for the 2024 financial year totaled €20,577 million, compared to €18,428 million in 2023, up 11.7% in total change and 8.3% in organic terms (at constant scope and exchange rates 14 ), driven in particular by the robust performance of the Defence segment.

Geographically 15 , sales recorded solid growth in both mature markets (+7.9% in organic terms) and emerging markets (+9.6% in organic terms), driven by double-digit growth in Asia.

Sales in the Aerospace segment totaled €5,471 million, up 4.8% from 2023 (+2.9% at constant scope and exchange rates). Momentum in this segment reflects contrasting trends:

The Avionics business posted mid-single digit organic growth in 2024, notably driven by strong momentum in both original equipment activities and aftermarket services, with a return to pre-Covid levels in air traffic. However, as expected, the fourth quarter was impacted by delays in aircraft deliveries to airlines, which postponed in-flight entertainment (IFE) sales;
As expected, sales were almost flat in the Space business. The telecommunications segment continued to be impacted by structurally lower demand in the geostationary satellite market. Conversely, trends remain positive for OEN activities.

Sales in the Defence segment totaled €10,969 million, up 13.9% from 2023 (+13.3% at constant scope and exchange rates). This strong growth came against a backdrop of steady growth in the Group’s production capacity, enabling it to meet high demand in all product lines. Growth was notably driven by land and air systems, such as tactical vehicles and systems or surface radars. The fourth quarter of 2024 also benefited from favorable cut-off effects.

At €4,024 million, sales in the Cyber & Digital segment increased by 1.4% at constant scope and exchange rates (and +14.8% in total change including the positive scope effect of the acquisitions of Imperva and Tesserent). This moderate organic sales growth reflects different trends depending on the activities:

Strong momentum continued for cyber businesses, including a strong performance from Imperva;
Against a high comparison basis in 2023, payment services sales were impacted by destocking by our customers in North America;
Lastly, the digitalization of secure connectivity solutions maintained its strong growth. Sales generated in fully digital connectivity solutions (including eSIMs and on-demand connectivity platforms) recorded double-digit organic growth and accounted for more than half of sales of this secure connectivity solutions business in 2024.

Results

The Aerospace segment recorded Adjusted EBIT of €391 million (7.2% of sales), compared with €369 million (7.1% of sales) in 2023. The segment's Adjusted EBIT margin is driven by the Avionics business, which posted a double-digit margin and improving, including the contribution of Cobham AeroComms. However, Space activities weighed on the segment's margin, recording as expected a negative Adjusted EBIT margin in 2024 resulting from several factors: an expected increase in R&D spending, restructuring costs linked to the adaptation plan announced in March 2024 and the impact of inflation not reflected on past contracts.

Adjusted EBIT for the Defence segment amounted to €1,432 million, compared with €1,270 million in 2023 (an increase of +13.0% at constant scope and exchange rates). The margin for this segment was stable at 13.1%, compared to 13.2% in 2023.

At €585 million (14.5% of sales), Adjusted EBIT in the Cyber & Digital segment recorded solid growth in both value and margin. The improvement in profitability was notably due to the successful integration of Imperva and the robust margin on payment services and secure connectivity solutions for mobile networks in highly competitive markets.

Naval Group's contribution to the Group's Adjusted EBIT amounted to €93 million in 2024, compared with €91 million in 2023.

At -€166 million, compared with €2 million in 2023, net financial interest increased sharply, as expected. This increase was mainly linked to the substantial rise in debt following the acquisitions made in 2023. Other adjusted financial income 16 stood at €35 million in 2024 versus -€37 million in 2023, reflecting the exceptional positive impact of dividends on non-consolidated affiliates and foreign exchange gains. The adjusted financial expense on pensions and other long-term employee benefits 16 improved significantly (-€49 million compared with -€76 million in 2023), reflecting the removal of the interest expense following the transfer of UK pension obligations in December 2023.

At €21 million, compared with €105 million in 2023, the Adjusted net income, Group share, from discontinued operations 16 was in line with trends in the Transport business, which was sold on May 31, 2024.

As a result, Adjusted net income, Group share 16 was €1,900 million, compared to €1,768 million in 2023, after an adjusted income tax charge 16 of -€427 million, compared to -€370 million in 2023. At 20.4% in 2024 compared to 20.1% in 2023, the effective tax rate was stable.

The Adjusted net income, Group share, per share 16 amounted to €9.24, up 9% from 2023 (€8.48).

Consolidated net income, Group share, stood at €1,420 million, up 39% from 2023. This increase can be explained notably by the recognition in 2023 of a non-current and non-recurring expense linked to the implementation of insurance coverage for the Group's commitments under the Thales UK Pension Scheme.

Financial position at December 31, 2024

Free operating cash flow 17 amounted to €2,027 million compared to €2,026 million in 2023. It included a contribution of €2,142 million from continuing operations and -€116 million from discontinued operations. For continuing operations, the cash conversion ratio of Adjusted net income, Group share, into free operating cash flow was 114%.

The net balance of acquisitions and disposals of subsidiaries and affiliates amounted to €359 million. Under its acquisition strategy, the Group completed two major operations in 2024:

The acquisition (on April 2, 2024) of Cobham Aerospace Communications, a leading supplier of cutting-edge technologies enabling flexible, integrated and more-autonomous avionics systems, based primarily in the United States and generating sales of approximately $200 million in 2023 (see press releases dated July 12, 2023 and April 2, 2024);
The sale (on 31 May 2024) to Hitachi Rail of the Transport business, a global leader in rail signaling and train control systems, telecommunications and supervision systems, and fare collection solutions (see press releases dated August 4, 2021 and May 31, 2024). This business generated sales of €1,822 million in 2023.

As part of the share buyback program covering a maximum of 3.5% of the capital announced in March 2022 and completed in March 2024, 1,245,757 shares were repurchased during 2024, representing 0.6% of the share capital, for €176 million. The Group repurchased a total of 7,469,396 shares under this program, 3.5% of the share capital.

At December 31, 2024, net debt amounted to €3,044 million compared with €4,190 million at December 31, 2023. This decrease reflects the impact of free operating cash flow generation, acquisitions and disposals for -€359 million (€3,464 million in 2023), the payment of €708 million in dividends (€634 million in 2023), new lease liabilities for €143 million (€166 million in 2023) and the share buyback program.

Equity, Group share amounted to €7,515 million, compared with €6,830 million at December 31, 2023. This increase reflects the positive contribution of consolidated net income, Group share (€1,420 million) less the dividend payout (-€708 million) and share buybacks (-€176 million).

Non-financial performance

In line with its corporate purpose of “Building a future we can all trust”, Thales has set itself the ambition in terms of Corporate Social Responsibility (CSR): to contribute to a safer, greener and more inclusive world. First, the Group will seek to maximize the contribution of its portfolio of solutions to the planet and society. Secondly, Thales has set itself ambitious targets on three main priorities:

The fight against global warming;
Strengthening gender diversity at all levels;
The implementation of the best standards in terms of ethics and compliance.

In terms of the fight against global warming, scope 1 & 2 CO ₂ emissions fell by 56.8% in 2024 compared to 2018 and scope 3 emissions fell by 24.7% compared to 2018. The Group has thus achieved its 2030 targets ahead of schedule for the second consecutive year. The absolute value reduction targets for carbon footprint remain relevant for 2030 given the Group's growth prospects. To raise employee awareness to climate change and its impacts on society and on the Group, a voluntary training named "Thales Climate Passport" was deployed in 2024 with the aim of training 50% of managers. Over 67.4% of managers, representing around 35,000 employees, completed this training course in 2024, demonstrating the great success of this training.

With regard to strengthening diversity, Thales has set itself an ambitious target for 2026 to have 75% of management committees with at least 4 women. Thus, at the end of 2024, 61.5% of the Group's management committees had at least 4 women, compared to 52.6% at the end of 2023. The highest levels of responsibility comprised 21.1% women at the end of 2024 [1] ; a performance in line with the Group's trajectory to reach the set goal of 22.5% by 2026 (compared to 20.4% at the end of 2023 and 16.6% at the end of 2018).

In the area of ethics and compliance, 100% of employees concerned by the 2024 anti-corruption training campaign have been trained, demonstrating the Group's continuous commitment to train all employees potentially exposed to risk situations. In 2024, the ISO 37001 certification "Anti-bribery management systems" was renewed for 3 years and extended to Germany, Australia, and New Zealand after Canada and the United States in 2023, and the United Kingdom and the Netherlands in 2022. Thus, in 2024, the revenue generated by certified entities represents 64% of the Group's revenue (vs. 58% in 2023).

Proposed dividend

The Board of Directors decided to propose to the shareholders, who will convene at the Annual General Meeting on May 16, 2025, the payment of a dividend of €3.70 per share. This corresponds to a payout ratio of 40% of the Adjusted net income, Group share, per share.

If approved, the ex-dividend date will be May 20, 2025, and the payment date will be May 22 2025. This dividend will be paid fully in cash and will amount to €2.85 per share, after deducting the interim dividend of €0.85 per share paid in December 2024.

Outlook

Thales is embarking on 2025 with confidence, bolstered by good visibility in the vast majority of its activities.

In 2025, the Avionics business will be driven by both the original equipment and aftermarket services activities, the continued growth of the Cobham AeroComms business, and the gradual recovery of the IFE business. In the Space business, the outlook remains positive, particularly in the Observation, Exploration & Science, Navigation and military telecommunications activities. However, the structural weakness of demand in the geostationary satellite market will dampen the growth of this activity. Thales will continue to implement its cost adaptation plan, with the objective of an

Adjusted EBIT margin of 7%+ in the Space business in 2028.

The Defence segment, which enjoys a record order book, will be further supported by strong demand in 2025, against a backdrop of increasing military spending, particularly in the geographical areas where the Group operates. With the increase in its production capacity over the past several years and a portfolio of premium solutions incorporating differentiating leading technologies, Thales is ideally positioned to meet its customers' needs.

Lastly, the Cyber and Digital segment will benefit from positive momentum in 2025, supported by Thales’ unique positioning and leadership. The continued development of Imperva will strengthen the differentiating value proposition in cybersecurity activities in order to take advantage of the buoyant environment. The payment services business is also expected to gradually return to growth.

The Group expects net investment expenses to slightly exceed €700 million in 2025 (after €617 million in 2024) to meet the need to increase production capacity, particularly in the Defence business.

As a result, Thales sets the following targets for 2025:

A book-to-bill ratio above 1;
Organic sales growth of between +5% and +6%, corresponding to sales in the range of €21.7 billion to €21.9 billion;
An Adjusted EBIT 18 margin between 12.2% and 12.4%, up 40 to 60 basis points from 2024.

The Group also expects to maintain a high cash conversion ratio of between 95% and 100% in 2025.

Note: assuming no new major disruptions of macroeconomic and geopolitical context; including tariff increase.

Impact of new tax measures in France

Following the adoption of the 2025 budget, which introduces various tax changes, the impacts for the Thales Group are as follows:

An additional tax expense of ~€80 million related to the temporary additional corporate tax charge, giving rise to an additional tax of 41.2% in 2025, resulting in an overall tax rate of 36.13% (instead of the current rate of 25.83%);
~€8 million in taxes payable on share cancellations made in October 2024 as part of the share buyback program.

The temporary additional contribution to corporate tax for Naval Group could have a negative impact of around €8 million on Thales' Adjusted EBIT in 2025.

These different impacts will represent an equivalent cash outflow in 2025.

https://www.thalesgroup.com/en/group/investors/press_release/thales-reports-its-2024-full-year-results

ACQ_REF: IS/48751/20250407/FRA/31/1

ACQ_AUTHOR: Associate/Mohammad Azhar Bin Mazlan

Word count: 14544

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