(AOF) – Thales shares (+7.66% to 148.95 euros) dominate the CAC 40 index after presenting this morning results for 2023 that were higher than expectations. The company’s stock is at a record high on the stock market. Its order book also reached a historic high of 45 billion euros, increasing by more than 4.5 billion euros in 2023. Driven by the defense and security sector, its orders increased by 0.2% organically to 23.1 billion euros. They exceed the consensus by 12%, says Deutsche Bank.
Over the whole of 2023, Thales’ turnover stood at 18.42 billion euros, an organic increase of 7.9%, driven in particular by the dynamism of civil aeronautics activities.
The group posts a record EBIT of 2.13 billion euros (11.6% of turnover), compared to 1.93 billion euros (11% of turnover) in 2022, organic growth of 10.9%.
On the other hand, the consolidated net profit, group share fell by 9% to 1.02 billion euros. “This drop in this net result is explained by a non-current charge of 349 million pounds recorded in 2023 linked to the establishment of insurance coverage of its commitments under the main British pension scheme (Thales UK Pension Scheme), as part of the agreement concluded in December 2023 with Rothesay concerning the transfer of these commitments”, underlines Thales.
Its operational free cash flow amounts to 2.02 billion euros, compared to 2.52 billion euros in 2022 and a consensus of 1.62 billion euros.
In parallel with the presentation of the annual results, the board of directors decided to propose for the 2023 financial year the distribution of a dividend increasing by 16% to 3.40 euros per share. It corresponds to a distribution rate of 40% of adjusted net income, group share, per share.
Thales anticipates an increase in its sales and Ebit margin for 2024
In the absence of further major disruptions to the global economy, the health context or global supply chains, Thales has set its objectives for 2024, “in line with expectations” according to Deutsche Bank.
For this year, as in 2023, the company is targeting a book-to-bill ratio greater than 1. It expects organic growth in its turnover of between 4% and 6%, corresponding to a single digit business between 19.7 and 20.1 billion euros (compared to 19.96 billion euros expected).
In addition, the defense group targets an EBIT margin of between 11.7% and 12%, up 10 to 40 basis points compared to 2023.
Finally, for 2024, in terms of order intake and deposits receivable, Thales is targeting a cash conversion ratio close to 100% of adjusted net income, group share.
Thales Alenia Space restructuring plan
Despite these optimistic prospects, Invest Securities explains that “Thales will put in place an adaptation plan for its subsidiary Thales Alenia Space (1,300 positions affected could be eliminated), to cope with structurally weaker demand. “This explains the EBIT margin guidance for the aerospace division (approximately 7% compared to 8.4% expected) which means that it at group level may appear a little weak”, affirms the broker.
“Thales Alenia Space displays new commercial successes in observation (IRIDE, I-HAB) and navigation (Galileo), but does not record any new major orders in the commercial telecommunications segment,” explains Thales.
Order intake in the aerospace sector stood at 5.59 billion euros, down 5% at constant scope and exchange rates.
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