Thales Group
Defense and aerospace technology leader posting €20.6B revenue through modular platforms adapting radar, encryption, and avionics across military and commercial applications.
Thales generated €20.6 billion revenue in 2024 with €51 billion order backlog, operating across defense, aerospace, cybersecurity, and transport. The company produces radar systems tracking aircraft, satellites encrypting communications, fare-collection systems for metros, and air traffic control networks—each requiring different expertise but sharing underlying signal processing and cryptography. This is modularity: distinct product lines built from common technological building blocks. A phased-array radar for the French Navy's FREMM frigate shares digital signal processing chips with ground-based air surveillance systems. Encryption modules securing military communications adapt for commercial banking networks.
The biological analogy is modular body segmentation in arthropods. A centipede's segments each contain repeated structures (legs, ganglia, spiracles) but specialize for different functions—locomotion, reproduction, sensing. Thales segments include Defense & Security (€10.6B revenue, +12% in 2024), Aerospace (€5.5B, +9%), and Digital Identity & Security (€3.4B). Defense revenue surged 16.5% in Q1 2025 to €2.7 billion as European nations increased military spending following Ukraine invasion. The company produces air defense systems (Ground Fire radar, GM200 multi-mission radar), naval combat systems (SETIS combat management), and military satellites (Syracuse IV secure communications). Each system shares core technologies: radar signal processing algorithms, encryption protocols, sensor fusion software.
This modularity enables rapid reconfiguration. When Indonesia ordered two Scorpène submarines in 2024, Thales adapted existing combat management systems and sonar arrays originally developed for French and Indian navies. When Singapore upgraded its air defense network, Thales integrated ground-based radars with aerial surveillance systems using common data link protocols. The company's aerospace division supplies avionics for Airbus A350 and Boeing 787, adapting the same flight management computers across platforms. Cybersecurity revenue reached €1.6 billion in 2024, with encryption technology flowing from military applications into commercial cloud security and payment systems.
The company employs 81,000 people with operations in 68 countries, generating 62% of revenue outside France. R&D spending hit 18% of revenue in 2024, focused on quantum-resistant cryptography, AI-powered radar processing, and autonomous systems. Defense margin reached 14.5% in 2024 while Aerospace achieved 13.2%—modularity allowing cost-sharing across product lines. The €51 billion order book (2.5 years of revenue) includes €12 billion in defense orders placed in 2024, with contracts for F-35 mission systems, NATO radar networks, and Australian submarine combat systems. Thales projects 2025 revenue at €21.7-21.9 billion with 12.2-12.4% operating margin, demonstrating how modular architectures maintain profitability across diverse markets by amortizing R&D costs over multiple applications and customers.