By Mauro Orru
Thales narrowed its sales growth guidance for the year after reporting first-half sales and earnings that rose ahead of analysts’ forecasts, led by growth at its aerospace and defense and security businesses.
The French aerospace-and-defense company on Friday posted sales of 8.72 billion euros ($9.71 billion), up 5.6% in reported terms and 7.7% organically. Thales’s order intake came in at EUR8.56 billion, down 24% in reported terms and 23% organically.
Net profit climbed 15% to EUR649 million, while adjusted net profit increased 13% to EUR819 million. Earnings before interest and taxes–Thales’s preferred measure of profitability–rose to EUR993 million from EUR891 million in last year’s first half, generating an 11.4% margin.
Free operating cash flow came in at EUR99 million compared with EUR820 million last year.
Analysts had forecast sales of EUR8.64 billion, an order intake of EUR8.49 billion, adjusted net profit of EUR764 million, EBIT of EUR980 million on a 11.3% margin and free operating cash flow of EUR85 million, according to a company-provided consensus.
For 2023, Thales is targeting organic sales growth of 5% to 7%, narrowing its previous 4% to 7% forecast. The group continues to expect an EBIT margin between 11.5% and 11.8%.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
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