France's Dassault Aviation reports strong sales growth as defence spending rises

By Anna Peverieri and Tim Hepher

(Reuters) -French planemaker Dassault Aviation reported a rise in its full-year sales on Wednesday as tensions between major nations fuel defence spending.

The company is riding an industry-wide boom in demand stemming particularly from Russia's conflict in Ukraine and the U.S. suspension of military aid to Kyiv, which is accelerating rearmament efforts in Europe.

Its shares were up 4.2% by 1020 GMT, with JPMorgan analysts saying in a note that the group posted a "results beat at every level".

Dassault Aviation, the biggest industrial shareholder in defence and technology firm Thales, said its adjusted net sales rose to 6.23 billion euros ($6.62 billion) in 2024, above its annual guidance and up from 4.80 billion euros in 2023.

The group reported an operating income of 519 million euros for the year, compared with 349 million in 2023.

The aircraft manufacturer expects to deliver 25 Rafale and 40 Falcon jets in 2025, resulting in annual revenue of around 6.5 billion euros.

Echoing other leading European aerospace companies, Dassault Aviation said that its 2025 guidance did not include any impact from possible U.S. tariffs and potential European countermeasures.

Dassault Aviation said it is intensifying Rafale production amid ongoing supply chain issues, which began during the COVID-19 pandemic and have weighed on the group's deliveries.

It is looking for new suppliers to make up for those who are experiencing difficulties, and expects the supply chain bottlenecks to loosen in 2026, CEO Eric Trappier told a press conference.

The aircraft manufacturer reported order intake of 10.87 billion euros last year, including previously reported orders for 30 Rafale warplanes designated to export markets and 26 Falcon business jets.

The share of defence exports in the yearly order intake was 90%, Dassault Aviation said.

Trappier confirmed exploratory talks to sell the Rafale to Saudi Arabia but said this would depend on political decisions and the country's evaluation of the aircraft.

Dassault Aviation's order backlog stood at 43.22 billion euros at end 2024 and included 220 Rafale warplanes and 79 Falcon business jets, it said.

($1 = 0.9404 euros)

(Reporting by Anna Peverieri and Tim Hepher; Editing by Andrew Heavens, Louise Heavens and Jan Harvey)

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