2018 Half year results

Thales’s Board of Directors (Euronext Paris: HO) met on 19 July 2018 to review the financial statements for the first half of 20181.

“In the first half of 2018, Thales again posted a very solid performance. Organic sales growth reached almost 7%, ahead of the full year target. Order intake, up by 5%, was in line with our expectations. The operating margin rose sharply, breaking through the 10% barrier in H1 for the first time. As planned, we significantly increased our R&D investments, up 13% for H1 2018, in order to accelerate the development of the most innovative solutions in every one of our markets and plan for the future. These positive dynamics allows us to confirm our 2018 financial objectives.”
“All Group teams are focused on the implementation of the second phase of our strategic plan Ambition 10, which combines the strengthening of our position as a technology leader in all of our markets with the ramp-up of new operational performance initiatives.” “The projected acquisition of Gemalto, a booster of this strategy, is proceeding as planned. It should be completed before the end of the year, once we have obtained all the necessary regulatory authorizations.” “Our ambition is simple: to grow profitably, faster than the market, and in a sustainable way, in order to maximize value creation.”
Patrice Caine, Chairman & Chief Executive Officer
  • Solid order intake: €6.3 billion, up 5% (up 8% on an organic basis)
  • Sales: €7.45 billion, up 4.7% (up 6.9% on an organic basis)2
  • EBIT3 : €762 million, up 30% (up 33% on an organic basis)
  • Adjusted net income, Group share3 : €539 million, up 39%
  • Consolidated net income, Group share: €457 million, up 53%
  • Free operating cash flow3: -€272m
  • All 2018 financial objectives confirmed

 

In € millions except earnings per share (in €) H1 2018 H1 2017 restated for IFRS 15 H1 2017 reported Total change Organic change
Order intake 6,331 6,009 5,972 +5%  +8%
Order book at end of period 30,987  32,064  4 31,9147 4 -3% -3%
Sales 7,452 7,118 7,241 +4.7% +6.9%
EBIT3 762 587 637 +30% +33%
in % of sales 10.2% 8.3% 8.8% +2.0 pts +2.0 pts​​​​​​​
Adjusted net income, Group share3 539 387 ​​​​​​​ 424 +39%​​​​​​​  
Adjusted net income, Group share, per share3 2.54 1.83 2.00 ​​​​​​​​​​​​​​ +39%  
Consolidated net income, Group share 457 299 336 +53%​​​​​​​​​​​​​​​​​​​​​  
Free operating cash flow3 -272 216 216 -488​​​​​​​​​​​​​​  
Net cash at end of period 2,311 2,9714 2,9714 -661
 
 

 

 

Notes
1 The limited review of the financial statements has been completed and the statutory auditors’ report has been issued following the meeting of the Board of Directors.
2 “Organic” means at constant scope and currency.
Non-GAAP measures, see definitions in the press release.
4 At 31 December 2017