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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 49 research reports from 4 professional analysts.
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth
Companies: Strix Group PLC
Zeus Capital
Companies: Yu Group PLC
Liberum
Companies: FOG PEB KBT EMR TIME GETB JNEO
Cavendish
Cohort announces that its subsidiary SEA (Systems Engineering and Assessment Ltd.) has been awarded a major contract by the UK’s Ministry of Defence to provide Electronic Warfare Counter Measures (Increment 1a) (EWCM 1a) to the Royal Navy with a total value of at least £135m. This includes provision and support of SEA’s Trainable Decoy Launcher System, Ancilia. At the FY 24 interim results Cohort had commented on an overall “increased tempo” of order intake. The Group reported a closing order b
Companies: Cohort plc
Equity Development
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
Companies: AEIT ROOF DGI9 INPP GSF SEIT USFP HICL ORIT BSIF TRIG NESF SEQI HEIT GRP GCP FSFL 3IN AERI PINT RNEW BBGI GSEO DORE TENT GRID CORD HGEN AEET
Hardman & Co
Companies: Luceco PLC
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik
Quadrise continues to advance towards commercial revenues for its innovative fuel and biofuel technologies, with each of its projects approaching key milestones in 2024. Preparatory steps for the MSC Shipmanagement (MSC) fuel trials are now complete and fuel supply agreements are nearing finalisation. Quadrise will achieve its first licensing revenues on the successful completion of Valkor’s project financing (timing uncertain). Quadrise also successfully concluded its Morocco trial, paving the
Companies: Quadrise PLC
Edison
Companies: FOG TND BVXP ACC HDD
Companies: Flowtech Fluidpower plc
Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base, total revenue increased an impressive 20.2% to £136.1m (organic +15%), with adj. PBT +7.5% to £31.7m (FY2022: £28.3m), 3.1% ahead of our estimate of £30.5m. Fully diluted (FD) adjusted EPS increased a more muted 2.6% (impacted by anticipated tax headwinds) to 368.5p (basic adj EPS 374.5p), 3.4% ahead of
Companies: Judges Scientific plc
WHIreland
Companies: Michelmersh Brick Holdings PLC
Canaccord Genuity
Companies: BILN IGP RBN SBTX
Gelion has reported in line H1 FY24 results that demonstrate continued strong cash management and steady progress in its pursuit of next generation lithium-sulphur battery technologies. Encouraging early test results justify last year’s IP acquisitions and validate Gelion’s Li-S battery technology plan, with additional progress expected to be reported in H2 alongside its pursuit of a strategic partner for its planned Advanced Commercial Prototyping Centre (ACPC) facility in Australia. There is a
Companies: Gelion PLC
Forterra’s FY23 (to 31 December) earnings were slightly higher than guidance, which was raised in January, with resilient pricing partly offsetting a steep fall in demand among its main end users, large housebuilders. Our estimates are broadly unchanged, other than reflecting a more conservative stance on the final dividend. Despite a cautious tone in the outlook statement, we believe the largest housebuilders may now rebound more strongly than smaller peers.
Companies: Forterra Plc
Progressive Equity Research
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