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Thales adjusts down its 2019 organic sales growth target and confirms its other short and medium-term financial targets

  • Q3 2019 sales in line with consensus expectations: €4.2 billion, up 23.4% (+0.9% on an organic basis[1])
  • 2019 sales growth target adjusted: growth now expected around +1%
  • Confirmation of all other 2019 financial objectives (order intake and EBIT[2]), as well as medium-term financial objectives presented at the 3 October Capital Markets Day

Thales (Euronext Paris: HO) will disclose its order intake and sales for the period ending 30 September 2019 at 7am CET on Tuesday 22 October.

In accordance with EU regulation No. 596/2014, which provides that issuers shall inform the public as soon as possible of inside information directly relevant to them, the Group is today announcing the adjustment of its 2019 organic sales growth target.

Thales now expects its organic sales growth to be around 1% over Full Year 2019[3]. This adjustment is due to 2 operating segments: Aerospace and Defence & Security.

In the Aerospace segment, operators of commercial telecommunication satellites continued to adopt a wait-and-see attitude in the 3rd quarter, resulting in a lower than expected order intake, which will therefore contribute only slightly to Q4 sales. For the Full Year 2019, the Group now anticipates a decline of around 13% in space sales[4].

Nevertheless, the Group is currently participating in the final stage of 4 significant commercial satellite tenders, whose conclusion is expected in the coming weeks. This level of commercial activity confirms the gradual recovery of this market.

The long-term outlook for space markets remains robust, driven notably by the increase in space agency budgets, the growing importance of space systems for military applications, and the strong development of commercial connectivity needs.

In the Defence & Security segment, Full Year 2019 organic sales growth will remain high, around 6 to 7%, but should be lower than previously anticipated. The Group is facing a few delays on a limited number of projects, including a slower than expected production ramp-up on the Hawkei Australian military vehicles, and delays in contract awards by a few customers.

The 2019-23 growth outlook in this segment is unchanged.

At €4,220m, Q3 sales are in line with the consensus forecast of analysts who follow Thales results on a regular basis[5]. Q3 sales and organic sales growth are detailed in appendix, page 3.

The acceleration of competitiveness initiatives enables the Group to maintain unchanged its Full Year 2019 EBIT target: Thales should deliver an EBIT of between €1,980 million and €2,000 million, based on September 2019 scope and currency.

The Group also confirms its Full Year 2019 order intake target, expected to be slightly above €18 billion.


This press release contains inside information as per the definition of article 7 of EU regulation No. 596/2014

It may contain forward-looking statements. Such forward-looking statements represent trends or objectives, and cannot be construed as constituting forecasts regarding the Company’s results or any other performance indicator. Actual results may differ significantly from the forward-looking statements due to various risks and uncertainties, as described in the Company’s Registration Document, which has been filed with the French financial markets authority (Autorité des marchés financiers – AMF).


[1] In this press release, “organic” means at constant scope and currency. See definition page 27 of the 2018 registration document, and detailed computation on page 3

[2] Non-GAAP financial indicator, see definition page 27 of the 2018 registration document

[3] Previous target: “at the lower end of the 3 to 4% range”

[4] Previous target: “decline of around 10%”. This business generated sales of €2.45 billion in 2018.

[5] Q3 2019 consensus sales collected between 10 and 15 October: €4,235m. See