Thales reports its 2019 full-year results

Thales reports its 2019 Full-Year results

• Order intake: €19.1 billion, up 19% (+4% on an organic basis)

• Sales: €18.4 billion, up 16.1% (+0.8% on an organic basis)

• EBIT[2]: €2,008 million, up 19% (+4% on an organic basis)

• Adjusted net income, Group share[2]: €1,405 million, up 19%

• Consolidated net income, Group share: €1,122 million, up 14%

• Free operating cash flow: €1,372 million, 98% of adjusted net income, Group share

• Dividend of €2.65, up 27%

• 2020 objectives:

• Book-to-bill above 1, supporting sales growth acceleration from 2021

• Sales between €19.0 billion and €19.5 billion

• EBIT margin between 10.8% and 11.0%

Thales’s Board of Directors met on 25 February 2020 to review the 2019 financial statements.

“Thanks to the commitment of its 80,000 employees, Thales ended 2019 with a commercially very dynamic fourth quarter. The booking of 12 projects over €100 million in the last quarter drove us significantly above our order intake objective. After recording growth above 5% in the past three years, sales slowed down due to the commercial Space market downturn and an exceptionally high basis of comparison in Transport. EBIT and adjusted net income were up 19%, boosted by the smooth integration of Gemalto.

Our roadmap between now and 2023 remains unchanged. We are focused on generating profitable growth sustainably.

In a global 2020 environment with several uncertainties, Thales’s business model, which is both balanced and resilient, is more than ever creating value.”

Patrice Caine, Chairman and Chief Executive Officer

Key figures

Order intake in 2019 amounted to €19,142 million, up 19% from 2018 (+4% at constant scope and currency). Order momentum was particularly strong in the Defence & Security segment. At 31 December 2019, the consolidated order book stood at €33.8 billion.

Sales totalled €18,401 million, up 16.1% compared to 2018 and up 0.8% at constant scope and currency (“organic” change), with the decline in sales in the Aerospace and Transport segments offsetting the robust performance in Defence & Security.

In 2019, the Group posted an EBIT of €2,008 million (10.9% of sales) compared to €1,685 million (10.6% of sales) in 2018, up 19% (and up 4% organically), while continuing to increase investments in R&D.

At €1,405 million, adjusted net income, Group share was up 19%, thanks to the strong improvement in EBIT.

Consolidated net income, Group share amounted to €1,122 million. It recorded an increase of 14%, driven primarily by gains on asset disposals.

Free operating cash-flow[10] amounted to €1,372 million versus €811 million in 2018. This increase was due to the significant rise in adjusted net income (+€227 million), an improvement in the change in working capital requirement and the impact of IFRS 16 (+€203 million).

In this context, the Board of Directors decided to propose the payment of a dividend of €2.65 per share, up 27% from 2018, corresponding to an adjusted net income, Group share, per share pay-out ratio of 40%.