Thales's market cap, dividends, sales and earnings in 2020

  •   DEHOUI Lionel

The Thales Group is one of the European leaders in the manufacture and marketing of electronic equipment and systems. These are intended for several sectors including aerospace, transport, defence and security. In addition, the coronavirus health crisis impacted the company's business in 2020. Discover here the annual results for the year 2020.

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Thales's market cap, dividends, sales and earnings in 2020
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Turnover for the financial year 2020

For the full twelve months of fiscal year 2020, Thales generated revenues of €16,989 million, compared to €18,401 million in 2019. It declined by 7.7% year-on-year. At constant scope and exchange rates, this turnover is down 10.4% year-on-year. This decline is due in particular to the sharp drop in demand in the civil aeronautics sector.

It is also explained by the numerous disruptions that affected operations in all of the company's activities. From a geographical point of view, the decline in turnover was marked in emerging markets, which saw a 20.3% drop (in organic terms) over the year 2020.

This illustrates the anticipated phasing effects on certain large contracts (particularly in transport), after several years of strong growth. In mature markets, the group's activity fell by 6.2% (organic). This was despite the impact of the decline in the civil aeronautics business in France.

 

Revenue breakdown by business segment in 2020

In 2020, the Aeronautics sector generated revenues of €4,217 million, down 24.6% on the previous year. On a like-for-like basis, the fall was 24.1%. This decline is due to the impact of the Covid-19 health crisis, which caused delays in tenders in the space sector.

1,618 million, down 15.3% year-on-year. On a like-for-like basis, it fell by 13.9%. This decline was caused by the phasing effects on large urban rail signalling contracts, notably in London and Doha (Qatar). It was also due to delays in signing contracts as a result of the coronavirus pandemic.

For its part, the Defence & Security segment posted revenue of €8,085 million, down 2.2% compared to 2019. On a like-for-like basis, it declined by 1.8%. In H2-2020, this segment benefited from a catch-up effect with revenues up organically by 3.2%.

2,992 million, down 5.9% (like-for-like) year-on-year. This decline reflects the negative impact of the pandemic on passport demand from Q2-2020 onwards and on IoT connection modules in the same quarter.

 

About order intake and backlog in 2020

For the full year 2020, new orders booked by Thales are estimated at €18,476 million, down 3% year-on-year. At constant scope and exchange rates, they decreased by 6%. The Group booked 19 major orders with a unit value of over €100 million. They are valued at €5,052 million.

At the end of December 2020, order intake (with a unit value of less than €100 million) reached €13,424 million. They were down by 8% year-on-year and by 13% on a like-for-like basis. Geographically, order intake in emerging markets fell by 32% (at constant scope and exchange rates) to € 3,567 million.

14,910 million, up 3% (at constant scope and exchange rates). This performance was driven by the signing of 12 major military contracts in five countries. In addition, the Aerospace segment recorded order intake of € 3,822 million. 6.6 billion at the end of December 2020, down 10%.

The Transport segment's order intake was €1,652 million. 3.9 billion, down 4%. The Defence & Security business unit recorded an estimated order intake of 9,922 million euro. 23.2 billion at 31 December 2020.

The Digital Identity & Security segment recorded an order intake of €3,023 million. It should be noted that the majority of the business in this segment is conducted over short periods of time. Therefore, its backlog is not significant.

 

Performance of other financial indicators in 2020

For fiscal year 2020, Thales recorded an Ebit of €1,352 million, compared to €2,008 million in 2019. It is therefore down 32.7% year-on-year and 34.5% on an organic basis. Adjusted net profit (group share) was €937 million, compared with €1,405 million the previous year.

1,405 million in the previous year, down 33% year-on-year. Consolidated net profit (group share) was €483 million in 2020, compared to €1,122 million in 2019. It reported a fall of 56.9%. Adjusted earnings per share (group share) came to €4.40, compared with €6.61 a year earlier, a decrease of 33.4%.

At the end of December 2020, Thales posted an operating free cash flow of €1,057 million, compared to €1,372 million at the same time last year. At the end of the year under review, the company's net debt is estimated at €2,549 million, compared with €3,311 million at the end of December 2019.

At 31 December 2020, shareholders' equity (group share) reached €5,115 million, compared to €5,449 million a year earlier.

 

Thales dividend and market capitalisation

The General Meeting of Thales Group shareholders was held on 6 May 2021. During this meeting, the Board of Directors proposed a dividend of €1.76 per share for the 2020 financial year.

The company is also present on the stock markets. The Thales share is listed on the Paris Stock Exchange on the Euronext market. As of October 2021, its market capitalisation was estimated at EUR 17.85 billion.

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