Thales Backs Guidance After Sales Boost

By Mauro Orru

Thales backed its guidance for the year after third-quarter sales exceeded analysts' expectations thanks to growth at its aerospace and defence and security businesses, though orders missed forecasts.

The French aerospace-and-defense company on Tuesday reported 4.14 billion euros ($4.40 billion) in sales for the three months to the end of September, up 2.4% in reported terms and 7.2% organically.

Sales at Thales's aerospace business climbed 13% organically to EUR1.16 billion. Its defence and security business saw an 8.1% jump in sales to EUR2.14 billion, while the digital identity and security business contributed EUR811 million, down 1.5%.

Thales's order intake came in at EUR3.81 billion, down 10% in reported terms and 6% organically. All of Thales's units recorded contractions in orders, led by the aerospace business which saw a 15% decline on an organic basis.

Analysts had forecast sales of EUR4.10 billion and an order intake of EUR4.52 billion, according to a company-provided consensus.

For 2023, Thales is targeting organic sales growth of 5% to 7%, and an earnings before interest and taxes margin between 11.5% and 11.8%.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

October 31, 2023 02:25 ET (06:25 GMT)

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