Thales Sees 21% Surge in 2026 Orders on Global Defence Spending Rise
Thales Reports Strong Growth Amid Rising Global Defence Expenditure
By Florence Loeve
Order Intake and Financial Performance
PARIS, July 23 (Reuters) - French defence and aerospace group Thales on Thursday reported a 21% jump in order intake in the first half of 2026 compared with a year ago, as escalating conflicts around the world lifted military spending, boosting demand for its surveillance and defence systems.
The group said it received orders worth €12.47 billion ($14.23 billion) in the first six months, up 21% and far exceeding analysts' forecast for a 1% rise. They included 18 orders worth more than €100 million each, it said in a statement, easily beating last year's intake.
Defence Segment Contribution
"Defence contributes significantly to it," CEO Patrice Caine told journalists on a call.
Sales and Earnings Highlights
Sales at Europe's largest defence electronics group rose 7.8% organically to €10.95 billion in the period compared with the first six months of 2025, in line with a company-provided consensus of analysts. Defence, which generates more than half of group sales, grew 13.1%.
Adjusted earnings before interest and tax (EBIT) increased by 11.4% to €1.37 billion.
Exceptional Charges and Analyst Expectations
Results included a previously announced exceptional charge of about €450 million linked to Germany's cancellation of a programme for six F126 frigates.
Strategic Initiatives and Future Outlook
Order-Intake and Guidance Updates
Earlier this month, Thales raised its 2026 order-intake and cash-generation targets, lifting its book-to-bill ratio - order intake versus revenue - to 1.1 from 1.0. It also maintaining guidance for organic sales growth between 6% and 7% and its adjusted EBIT margin between 12.6% and 12.8%.
Satellite Venture and Expansion Plans
Caine said Thales is making progress on its planned satellite venture with Airbus and Leonardo and still expects to finalise it in 2027, subject to EU antitrust approval. The deal aims to create a European space champion, but faces opposition from German satellite maker OHB.
Acquisition of Exail and Underwater Warfare Expansion
Thales also announced this month plans to acquire naval drone company Exail for about €3.9 billion to strengthen its position in underwater warfare. Finance chief Jeremie Papin said the transaction should be concluded by the second half of 2027.
(1 euro = 1.14 U.S. dollar)
(Reporting by Florence Loève; editing by David Gaffen)
