• Net Sales: EUR6.2 billion, a 30% increase compared to 2023.
• Operating Income: EUR519 million, with an operating margin of 8.3%.
• Net Income: EUR1 billion, with a net income margin of 17%.
• Earnings Per Share: 13.5%, a significant increase from 2023.
• Free Cash Flow: EUR1.6 billion, increasing available cash to EUR8.4 billion.
• Order Intake: EUR10.9 billion, a 32% increase.
• Backlog: EUR43.2 billion.
• Rafale Deliveries: 21 units delivered, exceeding the guidance of 20.
• Falcon Deliveries: 31 units delivered, slightly below the forecast of 35.
• Self-Funded R&D: EUR437 million, down from EUR483 million in 2023.
• Dividend: EUR4.72 per share, with a total payout of EUR370 million.
• 2025 Sales Guidance: EUR6.5 billion, including 40 Falcons and 25 Rafales.

• Warning! GuruFocus has detected 7 Warning Signs with DUAVF.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Dassault Aviation SA (DUAVF) completed the delivery of 18 Rafale jets to Indonesia, marking a successful expansion into a new military market.
• The company was recognized as the Best Employer in the French aeronautics, rail, and naval sector, highlighting its strong reputation and appeal among young graduates.
• A significant order intake increase of 32% to EUR10.9 billion, with a record backlog of EUR43.2 billion, ensuring a strong pipeline for future revenue.
• Successful maiden flight of the Falcon 2000 Alexis Albatros, a key milestone for the French Navy's fleet renewal, showcasing Dassault's innovation in maritime surveillance.
• The company achieved a net income of EUR1 billion, with a net income margin of 17%, reflecting strong financial performance and profitability.

Negative Points

• Supply chain disruptions continue to affect production lines, with subcontractors facing difficulties that impact Dassault's ability to meet delivery schedules.
• The company delivered 31 Falcons, slightly below the forecast of 35, indicating challenges in meeting production targets.
• Political instability in France and potential changes in US trade policies pose risks to Dassault's operations and market access.
• The European taxonomy and regulatory environment are seen as unfavorable, potentially impacting Dassault's competitiveness in the European market.
• Concerns over potential US tariffs on European products, including Falcons, could increase costs and affect sales in the US market.

Q & A Highlights

Q: What are your thoughts on Mr. Faury's statements regarding the future fighter program combining Tempest and NGF? A: Eric Trappier, Chairman and CEO, stated that since the beginning of the program, Airbus has made such statements. Dassault Aviation is focused on developing the NGF demonstrator with German and Spanish partners and has not engaged in discussions with Guillaume Faury or the Tempest team.

Q: Considering the geopolitical situation, what are the prospects for Dassault Aviation in the Middle East, especially with Saudi Arabia? A: Eric Trappier explained that Dassault's strategy aligns with France's historical policy of offering independent technology to non-aligned countries. While Dassault is open to selling to Saudi Arabia, such deals are highly political, and the decision ultimately rests with the purchasing country.

Q: Does Dassault Aviation have a place in European defense, given the current contradictions and focus on American F-35 purchases? A: Eric Trappier affirmed Dassault's significant role in France and globally, emphasizing its unique competencies in aircraft and electronics. He expressed skepticism about a fully integrated European defense but remained confident in Dassault's essential role due to its expertise.

Q: What is Dassault's production capacity for Rafale, and can it increase if needed? A: Eric Trappier confirmed that Dassault has reached a production pace of three Rafales per month and is prepared to increase to four or five if required by future orders, including potential major orders from India.

Q: How would potential U.S. tariffs on European products impact Dassault, particularly regarding Falcon sales? A: Eric Trappier noted that a 25% tariff on Falcons sold to the U.S. would pose challenges, potentially requiring price adjustments. He highlighted the importance of monitoring the situation and its implications for Dassault's guidance.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.