Revenue distribution by sectors:

• Defense & Security: approx. 50%
• Aerospace: approx. 25%
• Transportation: approx. 15%
• Digital Identity and Security: approx. 10%

TOP 3 Markets:

1. France: approx. 25%
2. United States: approx. 20%
3. United Kingdom: approx. 15%

Thales S.A. generates the majority of its revenue from the defense and security sector, followed by aerospace. These sectors are known for their stable and long-term contracts, providing the company with a certain revenue security.

France remains the largest single market for Thales, attributed to its close connection to government defense contracts. The United States and the United Kingdom are also significant markets, strengthened by strategic partnerships and international contracts.

Production sites of Thales S.A.:

Thales S.A. is a globally operating company with production facilities in several countries. The most important production sites include:

• France: As the company's headquarters, numerous production facilities are located here, especially in the areas of defense, aviation, and security.
• Germany: Thales produces technologies for rail transport and defense systems here, among other things.
• United Kingdom: Thales UK is heavily involved in the production of defense and security technologies.
• Australia: Thales operates production facilities for defense systems and is a key player in the Australian defense sector.
• Canada: Technologies for the aviation sector are developed and produced here in particular.
• USA: Thales has several locations for the production of aviation and defense technologies.

Thales S.A. is active in over 50 countries and operates numerous other production sites worldwide specializing in various business areas. This global presence enables the company to efficiently develop and deliver its products.

Revenue Growth: Estimated 5-7% annually (2025-2027)

Focus on Digitalization and Cybersecurity: Thales S.A. is increasingly focusing on the digitalization of its services and products, especially in the field of cybersecurity. The company is investing in the development of new technologies to strengthen its market position in this rapidly growing sector.

Expansion into Emerging Markets: Thales plans to expand its presence in emerging countries to benefit from the increasing demand for defense and security solutions there. These markets offer significant growth opportunities as governments and companies are increasingly investing in modern technologies.

Sustainability and Innovation: Another strategic focus is on sustainable solutions and innovations. Thales is investing in research and development to offer more environmentally friendly products and reduce its ecological footprint. This aligns with global trends and requirements for sustainable business practices.

Through these strategic initiatives, Thales aims to further expand its market leadership in the fields of defense, aviation, aerospace, and digital identity.

Main raw materials: Electronic components, metals, rare earths

Countries of origin: China, USA, Germany, Japan

Thales S.A. is a leading company in the fields of aviation, defense, security, and transportation. For the production of their high-tech products, Thales relies on a variety of raw materials and materials. Electronic components and metals are essential for the production of communication systems and radar technologies.

China is a significant supplier of rare earths, which are needed for the production of electronics and high-performance magnets. The USA and Germany supply high-quality electronic components and specialized metals. Japan is also an important partner, especially for advanced semiconductor technologies.

This international procurement enables Thales to develop high-quality products that are competitive worldwide.

Market share: 10% in the defense sector (2024, estimate)
R&D expenses: 6.5% of revenue (2023)
Patents: Over 16,000 worldwide (2023)

Thales S.A. has a significant competitive advantage, especially in the defense and aerospace sectors. The company continuously invests in research and development, reflected in a high share of 6.5% of revenue. These investments lead to strong innovation capabilities, supported by more than 16,000 patents worldwide.

Thales' market share in the defense sector is around 10%, indicating a solid market position. Additionally, the company benefits from long-term contracts with governments and major industrial partners, providing a stable source of income.

Through its diversification in various high-tech areas, including cybersecurity and space, Thales can flexibly respond to market changes and further strengthen its market position.

Institutional investor share: approx. 70% (estimated for 2025 based on historical data)

Insider purchases/sales: No significant transactions known (2025)

The institutional investor share at Thales S.A. traditionally stands at a high percentage, as the company is considered an established player in the defense and technology sector. These investors appreciate the stability and growth potential of Thales.

No significant insider transactions are known for the year 2025. This could indicate that management has confidence in the current company strategy and market development.

Market share of Thales S.A.: Estimated around 8% (2025)

Main competitors and their market shares:

1. Lockheed Martin: around 12%
2. Raytheon Technologies: around 11%
3. BAE Systems: around 10%
4. Northrop Grumman: around 9%
5. Thales S.A.: around 8%
6. General Dynamics: around 7%
7. Leonardo S.p.A.: around 6%
8. Airbus Defence and Space: around 5%
9. Boeing Defence, Space & Security: around 4%
10. Saab AB: around 3%

Thales S.A. holds a significant market share in the defense and aerospace sector, especially in Europe. Thales' "moat" lies in its strong position in electronics and avionics, as well as in cybersecurity, where the company is considered a leader. This specialization provides a certain competitive advantage, especially in markets with high technological requirements.

Compared to competitors, companies like Lockheed Martin and Raytheon Technologies may have a stronger moat, as they have a broader product range and a stronger presence in the USA, the world's largest defense market. These companies also benefit from long-term government contracts and strong innovation capabilities.

Thales' advantage lies in its diversification and ability to quickly adapt to technological changes, which is advantageous in a rapidly evolving market environment. Nevertheless, they must continuously invest in research and development to maintain their position and compete against the larger US competitors.

Revenue growth: 7.5% (2024) EBIT margin: 10.2% (2024) Order backlog: 40 billion euros (2024)

Thales S.A. recorded a revenue growth of 7.5% in 2024, attributed to strong demand in the defense and aviation sectors. The EBIT margin of 10.2% demonstrates solid profitability and efficient cost control.

The order backlog of 40 billion euros indicates strong future revenue generation, providing the company with a certain level of stability and planning certainty. This is particularly important in the defense and aviation industry, where long-term contracts and projects are common.

In summary, Thales S.A. offers a stable financial foundation and growth prospects, making it a potentially attractive investment. However, investors should also consider geopolitical risks and market conditions in the relevant industries.

Dividend yield: 2.5% (2024)

Dividend history: Continuous payout in the last 5 years.

Thales S.A. has paid a dividend in recent years, with the dividend yield last standing at around 2.5%. The company has a solid dividend history with continuous payouts in the last five years, indicating a reliable dividend policy.

The stability of dividend payments is supported by Thales' strong financial position, including solid cash flow and a robust balance sheet. Analysts expect Thales to continue its dividend policy unless significant economic or company-specific challenges arise.