French giants of the defense and aerospace sector, Thales and Dassault Aviation, reported record financial results for 2025. Driven by rising government defense spending in the face of conflicts in Europe and the Middle East, the companies recorded a sharp increase in their order books. Thales exceeded the threshold of 25 billion euros in new orders, while Dassault announces further sales growth in the coming year, strengthening its position in the combat systems and avionics market.

Record Orders for Thales

The Thales conglomerate collected orders worth over 25 billion euros in 2025, a historic result for the organization.

Sharp Profit Growth

Thales's operating profit increased by 66 percent, mainly due to contracts from the defense sector and advanced avionics systems.

Optimism at Dassault Aviation

The manufacturer of the Rafale fighter jet recorded profit growth and announces a significant increase in sales volume in 2026.

The French technology conglomerate Thales closed 2025 with historic results, a direct effect of the global rise in geopolitical tensions. The company registered an order book worth over 25 billion euros, a clear signal of increased demand for advanced defense systems. The enterprise's operating profit grew by an impressive 66 percent, which management explains not only by the larger scale of operations but also by cost optimization and high profitability in the avionics and cybersecurity sectors. Investors enthusiastically received this data, seeing Thales as the main beneficiary of European army modernization programs. The company's management indicated that the current situation in the Middle East further "validates" long-term investments in military technologies. The European defense industry underwent a transformation after 2022, when Russia's full-scale invasion of Ukraine forced EU countries to revise defense budgets and move away from the so-called peace dividend, which dominated after the Cold War.Simultaneously, Dassault Aviation, the manufacturer of the Rafale fighter jet, reported solid growth in operating profit in 2025. Although the company faced challenges in supply chains, forecasts for 2026 assume dynamic sales growth. A key success factor remains the export status of the Rafale fighter, which is gaining new buyers in international markets. Dassault representatives emphasize that increased production capacity will allow for more efficient fulfillment of government contracts. „C'est une année record pour Thales en termes de commandes, ce qui confirme notre rôle crucial pour assurer la sécurité de nos clients dans un monde de plus en plus incertain.” — Patrice CaineMarket experts point out that such strong results from French champions are part of a broader trend in the European defense sector. Companies like Thales are becoming the foundation of the European Union's new industrial strategy, which aims to increase strategic autonomy. Rising defense spending in Germany, Poland, and the Baltic countries translates into multi-year contracts for radar systems, encrypted communications, and battlefield management systems. Prospects for 2026 remain optimistic, even though the industry must cope with wage pressure and the need for rapid implementation of innovations in artificial intelligence. 25 mld euro — was the value of new orders for the Thales group

Mentioned People

  • Patrice Caine — Chairman and Chief Executive Officer (CEO) of the Thales conglomerate.