By Sudip Kar-Gupta
PARIS (Reuters) – Defence and technology firm Thales unveiled new four-year targets on Thursday, predicting more than 25 billion euros ($26.34 billion) of revenues by 2028 as it reaps a decade of cyber investments.
Europe’s largest defence technology supplier, which has quadrupled its cybersecurity revenues through acquisitions in recent years, said it aimed for 5% to 7% average compound sales growth between 2024 and 2028.
Thales is also targeting an operating profit of 13% to 14% in 2028, up from 11.6% in 2023 and the 11.7% to 11.8% it expects to make this year.
The figures were set out ahead of the company’s first full-scale investor day since 2019, a period that has seen margins resume growth after dipping during the COVID pandemic.
France-based Thales is a key defence contractor in Europe and selected overseas markets like Australia.
Its military and civil products range from sub-hunting sonars to biometric identity systems for banks, and from satellites to seat-back entertainment systems for airlines.
Under Patrice Caine, who next month celebrates 10 years as CEO, it has pivoted away from areas like rail signalling to forge a leading role in cybersecurity after buying chipmaker Gemalto in 2019 and U.S. cybersecurity company Imperva in 2023.
THALES’ SPACE BUSINESS IN ‘RECOVERY MODE’
Caine told reporters Thales would focus part of its strategy on customers prepared to pay a premium for specialist high-value software products like banks and critical sectors like energy, which often generate higher margins than cyber services.
Caine acknowledged the company’s space business was still in “recovery mode” with pressure coming especially from Elon Musk’s rapidly growing Starlink constellation in low Earth orbit.
However he insisted there was a future in its traditional segment of larger and more bespoke geostationary satellites.
Caine declined comment on reports that the French state was linking up with Thales, in which it owns 27%, to buy sensitive assets of cyber firm Atos, following months of speculation about the owner of supercomputers that simulate nuclear bomb tests.
Caine said it was too early to judge the impact of U.S. elections on Thales’ broad portfolio from defence to civil aircraft. European nations are widely expected to boost defence spending while some civil markets face potential disruption from hawkish signals on sanctions from president-elect Donald Trump.
Thales CFO Pascal Bouchiat said the company’s largely U.S.-based cyber business should not be significantly affected.
($1 = 0.9485 euros)
(Reporting by Tim Hepher; Editing by Sudip Kar-Gupta)
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