Thales S.A.·Industrials
Thales S.A. provides various solutions for civilian and military customers in the aeronautics, space, defense, security, ground transportation, and digital security markets worldwide. It operates through Aerospace, Transport, Defence & Security, and Digital Identity & Security segments. The company offers communications, command, and control systems; mission services and support; protection and mission/combat systems; surveillance, detection, and intelligence systems; training and simulation solutions for air, land, naval, and joint forces; and digital identity and security solutions. It also provides air traffic management solutions; flight decks and avionics equipment and functions; in-flight entertainment and connectivity systems and services; electrical systems; aerospace training solutions; navigation solutions; support and services for avionics equipment; and vision systems. In addition, the company designs, operates, and delivers satellite-based systems for telecommunications, navigation, earth observation, environmental management, exploration, and science and orbital infrastructures; signaling, communications and supervision, and fare collection management systems and related services; cybersecurity and railway digitalization systems; and main line rail, and urban and intermodal mobility solutions. Further, it provides solutions for various markets and applications, including radiology, radio frequency, microwave sources, training and simulation solutions, lasers, and microelectronics solutions for science, industry, space, defense, automotive, railways, and energy conversion platforms. Thales S.A. has a strategic agreement with Google LLC. The company was formerly known as Thomson-CSF and changed its name to Thales S.A. in 2000. Thales S.A. was founded in 1893 and is headquartered in Courbevoie, France.
Industrials
Aerospace & Defense
78,189
2005-10-28
0.15

Thales S.A. is rated Hold due to AI disruption fears and commercial sector exposure, despite strong defense positioning. AI advancements threaten THLLY's cybersecurity and SOC business, with Claude LLM and agentic startups accelerating industry disruption. Geopolitical risks and the Iran war pose uncertainty for THLLY's commercial aerospace segment, impacting airline capex and supply chains.

Thales remains a buy, targeting 12%–27% upside based on 2026–2027 earnings and higher EV/EBITDA multiples. THLLY delivered 7.6% sales growth and 14% organic EBIT growth in 2025, with margin expansion and 27% higher free cash flow. 2026 guidance targets 5–7% sales growth, 12.6–12.8% EBIT margins, and 95–100% free cash flow conversion, with defense and aerospace leading.

The General Directorate of Passports, together with the Presidency of the Dominican Republic, are leading the transformation of the country's passport issuance system with a new, secure, efficient document aligned with international standards.

Leonardo disclosed its mid-term plan and targets, including doubling profits by 2030, sending shares up as much as 9%. Rheinmetall said Wednesday that it expects sales to grow between 40% and 45% in 2026.

France's Thales said on Wednesday it had launched a new integrated air and missile defence system, tying together existing capabilities and incorporating artifical intelligence.

Thales S.A. (THLLY) Q4 2025 Earnings Call Transcript