The French defence group said the mostly non-cash first-half 2026 hit would trim net profit by about 350 million euros, while leaving adjusted EBIT, adjusted net income and cash flow guidance largely intact.
Thales said it would book an exceptional charge of about 450 million euros ($514.58 million) in the first half of 2026 after Germany scrapped the F126 frigate programme. The French defence group said the mostly non-cash charge would reduce group net profit by about 350 million euros, but would not affect adjusted earnings before interest and taxes, adjusted net income or have a material impact on operating free cash flow. The company said it would seek compensation for work already carried out and damages linked to the cancellation. Thales added that the programme's termination should trim 2026 revenue by around 0.5% and less than 1% a year thereafter, while having a marginally positive effect on adjusted EBIT margin. It raised its 2026 order intake and cash generation targets, now expecting a book-to-bill ratio above 1.10 versus 1.0 previously and cash conversion of 100%-110%, up from 95%-100%, while confirming its 2026 organic sales growth and adjusted EBIT margin targets.