Thales profits boosted by defence business, avionics

Core Insights - Thales reported a slightly higher-than-expected annual core profit driven by its defence business and demand for avionics and space activities [1] - The company anticipates higher profit margins for 2026, projecting an operating profit margin of 12.6% to 12.8% [1] Financial Performance - Adjusted operating earnings for 2025 increased by 14% on a like-for-like basis to 2.74 billion euros ($3.20 billion) [1] - Sales rose by 8.8% to 22.14 billion euros, while fresh order intake edged up by 1% to 25.26 billion euros [1] - Analysts had expected adjusted operating income of 2.7 billion euros on revenue of 21.88 billion euros and an order intake of 25.21 billion euros [1] Future Projections - For 2026, Thales expects underlying revenue growth of 6% to 7%, with new orders continuing to outpace sales [1]