Sony Pixel Power calrec Sony

Thales reports its 2023 full-year results





Order intake1: 23.1 billion, slightly down 2% ( 0.2% on an organic basis2)

Sales: 18.4 billion, up 4.9% ( 7.9% on an organic basis)

EBIT3: 2,132 million, up 10.2% ( 10.9% on an organic basis)

Adjusted net income, Group share3: 1,768 million, up 14%

Consolidated net income, Group share: 1,023m, down 9% due to an exceptional expense linked to the transfer of risk relating to pension obligations in the United Kingdom to a third party

Free operating cash flow3: 2,026 million, 115% of adjusted net income, Group share

Dividend4 of 3.40, up 16%

Non-financial performance: Thales achieved or over-achieved all its 2023 targets

2024 objectives:

Book-to-bill5 above 1

Organic sales growth of between 4% and 6%, corresponding to sales of between 19.7 billion and 20.1 billion

EBIT margin between 11.7% and 12%

Cash flow generation target: conversion ratio of adjusted net income to free operating cash flow close to 100% in 2024

Thales's Board of Directors (Euronext Paris: HO) met on March 4, 2024 to review the 2023 financial statements6.

Once again this year, Thales has achieved remarkable performances.

Our excellent sales momentum continued in 2023, with the order intake once again exceeding 23 billion and the order book reaching an all-time high.

Organic growth in sales was higher than expected at 7.9%, driven in particular by the dynamism of the civil aeronautics activities.

This strong growth resulted in an even stronger EBIT improvement, which grew by nearly 11%, reflecting the quality of the Group's business model and of its operating leverage.

Finally, Thales once again generated high levels of cash, in excess of 2 billion.

These results reflect the trust our customers place in us, the commitment of our employees and the excellence of our technologies. I would like to thank all our teams for their contribution and dedication.

Building on these strengths, the Group worked hard in 2023 to prepare for the future.

In this regard, two major acquisitions will enable us to further strengthen our offers in key markets. Cobham Aerospace Communications in avionics, and Imperva in cybersecurity will provide Thales with very high added value technological bricks that are strongly complementary with our current portfolio of solutions.

Preparing for the future also means setting ever-more-ambitious CSR goals. The year 2023 marked the end of an extremely positive cycle in which we achieved or exceeded all our multi-year objectives and obtained recognition from leading non-financial rating agencies. We will announce our new ambitions in this area in the second half of 2024.

Finally, preparing for the future means continuing to increase our R&D investments so we can continue to develop our skills and technologies, which are our greatest asset.

We are therefore looking ahead to 2024 with optimism, confident in the quality of our fundamentals, the strength of our positioning and the importance of our contribution to the major societal challenges of our time.

Patrice Caine, Chairman and Chief Executive Officer

Key figures

In accordance with standard IFRS5, the financial data for the transport operating segment for 2022 and 2023 have been classified under discontinued operations following entry into exclusive negotiations with Hitachi Rail with a view to disposing of this business.

Order intake for the 2023 financial year was slightly down 2% compared with 2022 at 23,132 million but rose by 0.2% on an organic basis (i.e. at constant scope and exchange rates). As a reminder, in 2022 the Group benefited from signing a major contract for the supply of 80 Rafale aircraft to the United Arab Emirates. Sales momentum remained strong in 2023, with continued robust demand in the Defence & Security segment and a significant recovery in Aeronautics, particularly in aftermarket sales. The Group won a major 1.8 billion contract with the UK Ministry of Defence to ensure the long-term availability and resilience of Thales equipment on the UK fleet - the MSET (Maritime Sensor Enhancement Team) contract. At December 31, 2023, the consolidated order book stood at 45 billion, a new all-time high, up more than 4.5 billion year-on-year.

Sales reached 18,428 million, up 4.9% from 2022 in total change, and up 7.9% in organic change, driven in particular by strong momentum in civil aeronautics activities.

For 2023, the Group posted EBIT7 of 2,132 million (11.6% of sales), compared to 1,935 million (11.0% of sales) in 2022, up 10.2% in total change, and 10.9% in organic change.

At 1,768 million, adjusted net income, Group share7 was up 14% compared to 2022.

Consolidated net income, Group share amounted to 1,023 million, down 9% from 2022. This fall was due to a non-recurring expense of 349 million recorded in 2023 for the implementation of insurance coverage for its obligations under the Thales UK Pension Scheme as part of the agreement entered into with Rothesay in December 2023 concerning the transfer of these obligations.

The free operating cash flow7 stood at 2,026 million compared to 2,527 million in 2022. The conversion ratio of adjusted net income, Group share to free operating cash flow was 115% (162% in 2022). This once again exceptional performance reflects the excellent order intake, phasing effects on cash inflows related to contract execution, and continued progress in the action taken since 2020 under the CA$H! initiative.

In this context, the Board of Directors decided to propose the payment of a dividend of 3.40 per share, corresponding to a payout ratio of 40% of the adjusted net income, Group share, per share, an increase of 16% compared to 2022.

Order intake

Order intake for the 2023 financial year totaled 23,132 million, slightly down by 2% from 2022 in total
See more stories from thales

More from Thales


Thales' FlytEDGE - the first cloud-based IFE in the world Winner of Crystal Cabin Award

Facebook Twitter LinkedIn The Crystal Cabin Award Association recognized T...


Thales' FlytEDGE digitally remasters the inflight entertainment experience

Facebook Twitter LinkedIn Live personalization for a journey filled with unique experiences Instantly stream favorites and never miss a beat, continue wa...


SKY Perfect JSAT selects Thales Alenia Space to build a new cutting-edge software-defined satellite JSAT-31

Facebook Twitter LinkedIn Tokyo / Cannes, May 27th 2024 - Asia's large...


Thales Leads Innovative Digital Transformation of the Mauritius National Identity System

Facebook Twitter LinkedIn The Mauritius Prime Ministers Office (PMO) has c...


Thales Alenia Space signed a contract with the European Space Agency to develop a Low Earth Orbit Cargo Return Service

Facebook Twitter LinkedIn This contract represents a significant leap in s...


Thales and Nokia partner to deliver seamless renewal to London Underground

Facebook Twitter LinkedIn Thales, with its transmission network technology partner, Nokia, has been selected by Transport for London (TfL) to deliver an i...


Thales reports its order intake and sales for the first quarter of 2024

Facebook Twitter LinkedIn Order intake: 5.0 billion, up 47% ( 46% on an organic basis1 ) Sales: 4.4 billion, up 9.8% ( 7.9% on an organic basis) All f...


AI-assisted optronics: an unprecedented European project to increase combat perception capabilities

Facebook Twitter LinkedIn The European Commission signed the Grant Agreeme...


Niels Steenstrup appointed CEO of Thales InFlyt Experience

Facebook Twitter LinkedIn We thank TK for his leadership and dedication to our customers' success. We wish him well on his retirement, said Yannick ...


Thales opens a new System Testing Centre for German F126 project

Facebook Twitter LinkedIn On April 23rd 2024, Thales, the German Navy and German military procurement agency, BAAINBw (Federal Office of Bundeswehr Equipm...


Thales secures three major contracts to modernize the Portuguese railway infrastructure

Facebook Twitter LinkedIn Thales alongside partners SISINT and CONECTICABO...


Bots Now Make Up Nearly Half of All Internet Traffic Globally

Facebook Twitter LinkedIn Automated and malicious traffic rises for a fifth consecutive year Bad bots account for 32% of all internet traffic 44% of all...


Thales to supply seven additional Ground Master 200 Multi-Mission Compact radars for the Dutch Ministry of Defence

Facebook Twitter LinkedIn COMMIT (Command Materiel and IT), the Dutch mili...


Thales and Intel enable advanced protection for the Google Cloud ecosystem

Facebook Twitter LinkedIn Enables persistent protection of the most sensitive enterprise workloads in the cloud through customer-controlled data security,...


The search for life on Mars goes on with ExoMars 2028

Facebook Twitter LinkedIn Thales Alenia Space has signed a contract with the European Space Agency to continue work to take a European rover to search for...


Thales, Presagis, Universit Laval combine their expertise to increase autonomy in advanced air mobility solutions

Facebook Twitter LinkedIn Meudon, 3 April 2024 The Consortium for Researc...


Thales Announces Partnership with Saporo in Belgium to Empower Organizations with Enhanced Cybersecurity Resilience

Facebook Twitter LinkedIn This collaboration brings together Thales' e...


Thales speeds up its development of AI for defence

Facebook Twitter LinkedIn Thales, Europe's leading high-tech company in the civil and defence fields, has announced the creation of cortAIx, which bri...


PERCEVAL: Thales and partners reshape the future of airline pilot training

Facebook Twitter LinkedIn Thales has formed a consortium with ENAC, lENS Paris-Saclay, Simaero, AviaSim and Corsair to develop a tooled methodology for ev...


Thales and Skyguide partner to bring open architecture and best-of-class 3rd party system integration to the ATM industry

Facebook Twitter LinkedIn Thales and Skyguide signed a Memorandum of Under...


2024 Thales Data Threat Report Reveals Rise in Ransomware Attacks, as Compliance Failings Leave Businesses Vulnerable to Breaches

Facebook Twitter LinkedIn 27% increase in companies that fell victim to a ...


Thales and DGAC operate the world's first solar-powered Air Traffic Control radar station in Calama, Chile

Facebook Twitter LinkedIn The world's first Air Traffic Control radar ...


Thales offers an upgraded product model for air traffic management with an upgrade of TopSky - ATC

Facebook Twitter LinkedIn TopSky - ATC works together with key stakeholder...


Thales Alenia Space won European Space Agency's one of two LEO-PNT Orbit Demonstrators

Facebook Twitter LinkedIn A new satnav layer to complement the European Ga...


Thales to modernize Montreal Mtro blue Line,improving passengers' punctuality and train reliability

Facebook Twitter LinkedIn Following a call for tenders, the Soci t de tra...


Cyberani and Thales enter a strategic alliance to strengthen the Kingdom's cybersecurity

Facebook Twitter LinkedIn Mr. Saeed Al Saeed, CEO of Cyberani, and Mr. Pie...


Thales to equip Cibao International Airport in Dominican Republic with new Air Traffic Control Radar System

Facebook Twitter LinkedIn Instituto Dominicano de Aviaci n Civil (IDAC) se...


Post-quantum cryptography: six French cyber players join forces to design the secure communication networks of tomorrow

Facebook Twitter LinkedIn The RESQUE consortium brings together six French...


Thales Alenia Space will develop the radar instrument for ESA's 10th Earth Explorer Harmony exciting new mission

Facebook Twitter LinkedIn Thales Alenia Space has been selected by ESA to ...


Thales Partners with Neural Labs to Support AI-Powered Smart Cities

Facebook Twitter LinkedIn Partnership spanning two decades expands to incorporate cloud licensing SaaS capabilities will enable Neural Labs to deploy an...


GCAA, Etihad Airways and Thales set a collaborative framework for optimising flight operations

Facebook Twitter LinkedIn On March 8th, the General Civil Aviation Authori...


Thales provides expeditionary operations centre demonstrator to French Navy for drone-based mine countermeasures missions

Facebook Twitter LinkedIn Thales took less than six months to develop the ...


Thales Earns Top Equity, Diversity and Inclusion Accreditation in the United Kingdom

Facebook Twitter LinkedIn Thales Transport in the UK has achieved the EW G...


Thales reports its 2023 full-year results

Facebook Twitter LinkedIn Order intake1: 23.1 billion, slightly down 2% ( 0.2% on an organic basis2) Sales: 18.4 billion, up 4.9% ( 7.9% on an organic ...


Thales collaborative cloud solution certified to European Restricted level

Facebook Twitter LinkedIn In 2021, TrustNest R-Cloud became the first cloud solution certified for use with information classified as Restricted Distribut...


Thales successfully delivers the first CAPTAS-4 sonar for the US Navy

Facebook Twitter LinkedIn Advanced Acoustic Concepts (AAC), a subsidiary of Thales, has delivered the first CAPTAS-4 sonar for the U.S. Navys Constellatio...


Eseye selects Thales to streamline IoT deployments with seamless connectivity management

Facebook Twitter LinkedIn Eseye, a global IoT connectivity solutions provi...


Thales to supply 8 Full Flight Simulators to Airbus Helicopters to train Bundeswehr's H145M pilots

Facebook Twitter LinkedIn Thales has signed a historic contract with Airbu...


Telit Cinterion partners with Thales to enhance its IoT eSIM provisioning services

Facebook Twitter LinkedIn Telit Cinterion, an end-to-end IoT solutions ena...


Thales and Google scale eSIM across Android Ecosystem

Facebook Twitter LinkedIn Thales eSIM Discovery solution will run Google Discovery Service for seamless activation of Android devices. With 300+ eSIM pla...


Thales and Thaicom establish the foundation to lead the Unmanned Traffic Management deployment in Thailand

Facebook Twitter LinkedIn Thales and Thaicom, through Thaicom's subsid...


From post-quantum cryptography to seamless connectivity and 5G security, find out how Thales enables a secure connected world

Facebook Twitter LinkedIn Thales actively contributes to making the world ...


Saab and Thales sign ATM MoU for Singapore

Facebook Twitter LinkedIn Saab and Thales announced today at Singapore Airshow 2024 the signature of a Memorandum of Understanding (MoU) to support the lo...


Merah Putih-2 telecommunications satellite successfully launched

Facebook Twitter LinkedIn Set to provide more capacity over the Indonesian archipelago Cape Canaveral, Florida, February 21, 2024 - Merah Putih-2 telecom...


Malaysia Airlines Partners with Thales to Optimize Flight Management and Surveillance Solutions

Facebook Twitter LinkedIn 20 Airbus A330neo aircraft in Malaysia Airlines&...