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Thales published 9M results in line with market expectations, having benefitted from the strong momentum in avionics, accompanied by a robust performance in D&S. DIS saw mixed figures, with a collapse in the payment and sim card businesses offset by a solid performance from the biometric and cybersecurity activities. Given the good performance in 9M, Thales has re-iterated its FY23 guidance.
Companies: Thales (HO:EPA)Thales SA (HO:PAR)
AlphaValue
Thales has published H1 23 figures above our expectations. Order intake stood at €8.6bn (+5.2% vs AV) and sales at €8.7bn (+1.4% vs AV) while the underlying EBITA stood at €993m (+1.3% vs AV). However, after 5 exceptionally strong quarters, the DIS segment experienced a pricing headwind, which we believe will continue in H2. The company has marginally upgraded its guidance to +5-7% yoy organically (prev:4-7%) but, considering the latest FX rate, the absolute figures lie slightly below our curre
Thales has entered into exclusive negotiations to acquire Cobham Aerospace Communications, a supplier of advanced safety cockpit communication systems, for $1.1bn (financed in cash). At 17x EV/EBIT multiple, the deal is expensive but, with the company’s unique offering, better margins and vertical integration, we believe that Thales has struck a great deal.
Thales published good Q1 sales figures of €4.03bn (+7.9% yoy and +2.5% vs consensus). Sales were largely driven by the civil side, in particular, civil aeronautics (ongoing traffic recovery) and biometrics. The orderbook grew by 14%, driven by the defense business. The company remains confident that it can achieve its full year target and hence has left its guidance unchanged at 4-7% organic growth with a 11.5-11.8% EBIT margin.
Thales published good FY22 figures with sales and EBITA both in line with the consensus and FCF beating the market expectations. However, the company has given dull guidance for FY23, with FCF even below the market consensus. This comes as a negative surprise given that the sector has entered a new super-cycle with the onset of the war and a sharp recovery in civil traffic.
Thales published a solid set of Q3 results. The strong momentum in order intake continued in Q3 and sales increased strongly thanks to outperformance from the DIS activity. The company increased its FY22 sales guidance and reiterated its EBIT margin outlook. Thales seems well positioned to show resilience, even in a recessionary environment.
Thales has published robust H1 results. The massive Rafales contract has been recorded and pushed the order intake to a new record, boosting FCF with the downpayments associated with it. The improved guidance is mainly due to FX, and the organic sales midpoint has only improved by 50bp, which is in line with our view. Thales is still committed to bolt-on acquisitions of less than €500m, but does not totally exclude Atos.
Thales Q1 figures came as no surprise to the market. Despite the contract wins in space, the commercial traction for the other business divisions has been slow. As it will take time for governments to organize and place orders for Thales solutions, the FY22 guidance remains unchanged, which is a slight disappointment. Although the mid-term fundamentals of Thales remain exceptionally strong, we believe most of the positive dynamic has been already been factored into the stock price.
Thales has reported strong Q4 results, with the order intake at its highest level and strong cash generation. It has resulted in the first share buy-back programme in Thales’ history. The given guidance was a disappointment but does not encompass the major momentum that Defence companies have been witnessing in the current days due to the intensifying Ukraine/Russia war. Though the short-term consequences will be shy on financial figures, the long-term growth of the stock is unquestionable.
Thales has provided solid numbers which were globally in line with consensus. It has confirmed its new guidance (without the Transport division), where it seems well on track to achieve it. Overall, we are still impatiently waiting for an M&A opportunity to see which sector Thales will reinforce.
In 2016, the French group DCNS (currently known as the Naval Group) had won the largest contract in the history of Australia with a value of AUD90bn worth of conventional submarines. After five years of escalating tensions between the Australian government and the Naval Group due to technical issues, the Australian government announced today that it would drop the Naval Group in favour of a new alliance with the US and the UK.
After months of rumours, Thales finally found an acquirer of its Ground Transportation System business: the Japanese company Hitachi. This transaction will be paid in cash and the business will be considered as a discontinued operation for FY21. Therefore, guidance has been re-adjusted.
Thales published a solid set of results for its H1 this morning. All key figures are above consensus: order intake, sales, EBIT and FCF. Its guidance has been improved and the range is now more precise.
The return to growth of Thales is warmly welcomed by investors. The order intake was higher than expectations and proves that a recovery is in place. FY21 is expected to be a great year for Thales, with all sectors improving with time.
Results came in line with expectations, with still good commercial momentum and a major positive surprise concerning cash generation. Guidance points towards a return to growth in 2021, matching expectations. Buy recommendation reiterated.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Thales SA. We currently have 56 research reports from 5 professional analysts.
Renewi has made a solid start to the year with no change to guidance. It is clearly well placed in the growing circular economy and exiting the UK Municipal business provides a simpler investment proposition. We believe the key for the shares will be progress towards management’s medium-term financial targets, in particular at least 5% organic growth and operating margins of 8–10% (FY24: 6.2%).
Companies: Renewi Plc
Edison
SDI’s FY24 results, released this morning, confirm that while markets have experienced headwinds from inflationary pressures, and customer destocking issues linger, overall performance has been resilient. We note improving cash generation, with £3.8m of free cash flow in H2. Net debt was flat at £13.2m (FY23: £13.3m) after acquisition spend of £3.4m. Despite the unwinding of inflated Covid demand, SDI has made strategic and operational progress, with a strong team in place to support the next ph
Companies: SDI Group plc
Progressive Equity Research
Companies: Costain Group PLC
Panmure Liberum
Water Intelligence has announced a refinancing and expansion of its credit facilities with its existing lender M&T Bank which provides additional non-dilutive funding to execute its strategic growth plan.
Companies: Water Intelligence plc
Dowgate Capital
Poor reporting relating to the newly acquired Pinnacle Renewable Energy during FY 22 has resulted in a £25m redress payment for Drax by Ofgem but the regulator has found no evidence that ROCs were issued incorrectly. More importantly, Drax is now compliant with the reporting requirements and will additionally add an external audit process on biomass profiling. We see this as drawing a line under historic issues and should give comfort that the company now has the process in place to comply with
Companies: Drax Group plc
Longspur Clean Energy
Companies: Eneraqua Technologies PLC
Companies: Yu Group PLC
Joiners DSW Capital plc (DSW.L) a profitable, fast growing, mid-market, challenger professional services network joins AIM. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income. Public Policy Holding Company (PPHC.L) leading bi-partisan, full-service US government affairs business joins AIM. Through its wholly-owned companies, PPHC operates a portfolio of independent firms that offer public affairs, crisis mana
Companies: OHG RUA SAR ZOO PCA CCS SRC GDLF
Hybridan
21 February 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objec
Companies: SLP AXL BGO ZOO VRS SPR
14th July 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objecti
Companies: ONEM JSG ZOO HUW SML SAV VRS
Judges Scientific is a group focused on acquiring and developing companies in the scientific instrument sector. Following Judges’ H1 business update back in July, it’s pleasing to see that Judges’ ability to execute outstanding and earnings enhancing deals is unhindered (Magsputter acquisition on 15/8). Further, an announcement today confirms Geotek has signed the anticipated coring contract that will be recognised in FY2025, providing a significant underpinning to the coming year. Back on the
Companies: Judges Scientific plc
Zeus Capital
Companies: Kinovo PLC
Canaccord Genuity
Companies: PCIP SNG TIME LBE MPL DUKE
Cavendish
With FY24 guidance reiterated, we maintain our existing forecasts. Interims show the weaker trading experienced, as recently flagged at its pre-close update. Poor weather conditions in N. America and Australia have impacted performance, with other known issues such as concrete availability and elevated interest rates also affecting customer demand for new equipment. Management cost action should help mitigate the effect of revenue weakness. Somero remains a high-quality business with attractive
Companies: Somero Enterprises, Inc.
Morgan Sindall (LON:MGNS) operates in construction and regeneration, with activities in partnership housing, UK infrastructure, office fit out, and general construction. Morgan Sindall (LON:MGNS) operates through six divisions: Construction & Infrastructure, Fit Out, Property Services, Partnership Housing, Urban Regeneration, and Investments.
Companies: Morgan Sindall Group plc
Proactive