Business Description

Thales S.A. offers various solutions to customers in the French and international space, defense aerospace,  and security markets. In 2000, the company became Thales S.A. after it was known previously as Thomson-CSF. Thales S.A. was established in 1893. It is headquartered in Paris. It operates in three segments: Transport, Defence & Security, and Aerospace. It provides air traffic management solutions, electrical systems; navigation systems; flight decks, and other avionics equipment; flight avionics; IFE systems and connectivity services;  aerospace training solutions; support, and services for Avionics equipment. It also designs, operates, and delivers satellite-based systems that are used for communication, earth observation, space exploration, science, and revenue collection.

It also designs and delivers security solutions to states, critical infrastructure, cybersecurity,  cities, and big data solutions. The company also offers mission services and support, communications, command, and control systems, mission services, protection and mission/combat system, surveillance and intelligence systems, as well as training and simulation solutions for air and land, naval, and joint force forces. It also offers solutions for many markets and applications. These include radio frequency, radiology,  and microwave sources, laser training, simulation solutions,  and microelectronics for science, industry, and defense.

Key Financials (Thales Group)

Revenue (US$ Mn)

• At a 6.78% increase from, Thales S.A.’s annual revenue of US$ 10,133 Mn was indexed in 2021
• Thales S.A. generated total revenue of US$ 9,490 Mn in 2020

 

Operating Income (US$ Mn)

• At a 6.93% increase from, Thales S.A.’s operating income of US$ 1,304 Mn was indexed in 2021
• Thales S.A. generated an operating income of US$ 1,220 Mn in 2020

 

Net Income (US$ Mn)

• At a 45.25% increase from, Thales S.A.’s net income of US$ 1,598 Mn was indexed in 2021
• Thales S.A. generated a net income of US$ 1,100 Mn in 2020

 

Operating Margin %

• At a 0.79% increase from, Thales S.A.’s operating margin of 13% was indexed in 2021
• Thales S.A. generated an operating margin of 13% in 2020

 

SWOT Analysis

Strengths

Geographic Presence

The company has a wide geographic base. Thales has operations in 56 countries. It operates across regions of Europe, North America, the Middle East, Asia Pacific, Africa, and Latin America. The company’s major civil operations outside France are in Australia, the UK, the US, Italy, Germany, the Netherlands, Canada, and Spain. Further, the revenues of the company are diversified across all the geographic regions it operates. In FY2017, France, the largest geographical market of the company, accounted for 24.3% of total revenues.

This was followed by the UK (8.6%); the rest of Europe (21.4%); Asia contributed 14%; the US and Canada contributed 9.2%; the Middle East 10.4%; Australia and New Zealand 5.5%; and the rest of the world accounted for the remaining 6.5% of the overall revenues. Hence, the diversified presence and fairly spread revenue base ensure that the company does not rely on any one market for a majority of its revenues, which in turn helps it to reduce its business risk in the highly volatile industry.