Record profitability for Thales in 2017
Thales reported a record EBIT margin of 9.8% in 2017 on revenue of €15.8bn (+6.1%). Adjusted net profit rose 9%, to €982m.
Thales reported record profitability in 2017 on revenue of €15.8bn (+6.1% on a reported basis, +7.2% organic growth). Revenue in emerging markets increased by more than 10% for the fourth consecutive year, accompanied by a marked upturn in organic growth in mature markets (+5.8%).
Consolidated EBIT was €1.5bn (an unprecedented margin of 9.8%), compared to €1.4bn (9.1% of revenue) in 2016, a 14% increase. The Aerospace segment posted EBIT of €601m (10.0% of sales), versus €571m (9.8% of sales) in 2016. The EBIT margin rose in particular in the Space and cockpit avionics businesses.
Adjusted net profit rose 9%, to €982m. Consolidated net profit, Group share was €822m (–13%), affected by a sharp fall in capital gains on disposal of assets.
The group booked €14.9bn in new orders in 2017, down 10% compared to the high level recorded in 2016, which was boosted by the Q3 2016 booking of the 36 Rafale fighter aircraft ordered by the Indian government. The strong order momentum in Transport and Defence & Security compensated the slowdown in Aerospace (–11%). At 31 December 2017, the Group's order book stood at €31.9bn, representing almost two years’ worth of sales.
Revenue in the Aerospace segment came in at €5,985m (+3.0%), helped by good performance in commercial avionics and in-flight entertainment. Space revenue experienced strong growth, lifted by the ramp-up of contracts signed in 2014 and 2015 in both observation and telecommunications activities. Revenue in the Defence & Security segment rose 8.0%, to €8bn.