Thales: Better than expected H1-26 results, but DIS disappoints

Research evidence excerpt

Thales: Better than expected H1-26 results, but DIS disappoints

Deutsche Bank

Research

Rating Company Date

Hold Thales 23 July 2026

Results

Europe

France

Reuters Bloomberg Exchange Ticker Price at 22 Jul 2026 (EUR) 226.80

TCFP.PA HO FP PAR TCFP

Price Target 283.00

Aerospace & Defence

Aerospace & Defence ADR ISIN 52-week range 273.00216.50-

THLEY US8832191071

Better than expected H1-26 results, but

Valuation & Risks DIS disappoints

Christophe Menard

Thales reported a solid H1 performance, with a 19% beat on order intake, 4% on

Research Analyst

EBIT, and 300% on FCF. Space and Defence activities stood out as strong +33-1-4495-9315

performers on both order intake and profitability, but DIS surprised negatively

once again, dragged down on EBIT by payment services and identity services. Sriram Krishnan, CFA

FY26 guidance is confirmed.

+44-20-7541-0983

Samrudh Agrawal

A beat on order intake, EBIT and FCF, but DIS a miss

Research Associate

H1-26 Order intake came in 19% above consensus expectations at €12,471m, with

Aerospace 17% above expectations, driven by Space and Defence & Security order

intake at 30% above expectations. Thirteen large orders were booked in Defence

Price/price relative

and five in Space, supporting the better-than-expected performance. H1-26 total

revenues came in broadly in line at €10,949m, with divisional figures also showing

no disparity versus expectations.It is at the EBIT level that some differences versus 200

consensus emerge. First, EBIT came in 4% above consensus expectations at

€1,372m, a small beat. Defence & Security margin at 13.8% (versus 13.1% 100

2024 2025 2026

expected) departs from the traditional 13-13.5% range and is a clear positive. There

is no detail at this stage supporting this better performance.