French defence technology group Thales expects higher revenue growth in 2026 after recording a 7.6 per cent sales increase to €22.1bn in 2025, driven by strong demand for weapons systems. The company's defence order book reached a record €15.1bn, up 3 per cent from the previous year, with particularly strong demand from Asia and European countries outside France and the UK.

Chief executive Patrice Caine described a "generation-long" period of defence investment spanning 10 to 20 years, driven by rising geopolitical tensions and rearmament across Europe, the Middle East, and Southeast Asia. The Middle East conflict has reinforced this trend, though Caine noted it was too early to quantify specific impacts. Thales is accelerating investments, increasing its manufacturing budget by roughly 20 per cent annually, with capital expenditure reaching €830-€850mn in 2026.

The company forecasts overall revenue growth of 6-7 per cent for 2026, with margins improving to 12.6-12.8 per cent from 12.4 per cent in 2025. Headcount grew by about 2,000 to 85,000 employees last year, with staff turnover dropping to just above 4 per cent from almost 7 per cent three years ago as young recruits become more open to joining defence companies.