Thales Digital Identity and Security stars in Group earnings bounce-back
Thales Digital Identity and Security is being credited with the rapid growth, as Thales Group reported a bounce-back in its financial results during the first half of 2021.
Thales booked order intake of €8.2 billion (US$9.7 billion) in 1H 2021, up 35 percent from the same period a year ago. Improvements were also seen in sales (8.7 percent, or 9.8 percent on an organic basis), EBIT (up 121 percent), adjusted net income, consolidated net income and free operating cash flow. The latter improved from negative €471 million ($554 million) in 1H 2020 to positive €420 million ($494 million) in 1H 2021.
As a result of these biometrics and digital identity-driven gains, Thales Group has upgraded its total 2021 sales target to between €17.5 billion and €18 billion ($20.6 billion and $21.2 billion).
“Thales’s H1 2021 results recorded a sharp rebound, once again demonstrating the resilience of our business model and the relevance of the strategic choices – both technological and industrial – implemented,” comments Thales Group Chairman and Chief Executive Officer Patrice Caine. “Commercial momentum was especially strong in space, defense and cybersecurity. On a pro forma basis, EBIT was already close to its 2019 level. The robust improvement in Transport and Digital Identity and Security (DIS – formerly Gemalto) almost entirely offset the steep decline in Aerospace, which remained affected by the consequences of the health crisis on the civil aeronautics market.”
Caine attributes the company’s financial performance to the “commitment and professionalism of Thales teams.”
Potential second-half business wins for Thales include Nepal’s $14 million contract for biometric national ID cards, and Thales VP of identity and Verification Steve Purdy wrote about the potential for mobile driver’s licenses in a recent Biometric Update guest post.