Dassault Aviation orders slump to €2.88B as Rafale bookings hit zero

Dassault Aviation booked €2.88 billion in first-half orders, down 64% from a year earlier, as clients ordered zero Rafale fighter jets.

"The military and geopolitical contexts remain marked by the crisis situation in the Gulf and the continuing war in Ukraine," Chief Executive Eric Trappier said.

The French aerospace company's sales rose to €4.16 billion from €2.85 billion, beating the €3.33 billion Visible Alpha consensus. Operating profit climbed to €330 million from €180 million, also topping the €243 million estimate. The company maintained its full-year sales target of roughly €8.5 billion.

The order slump comes as France and Germany halted the Future Combat Air System program after a leadership dispute between Airbus and Dassault. Trappier said the company is in talks with the French government for an alternative, potentially on a purely French basis or with other partners. Dassault is also working to finalize a contract for India to acquire 114 Rafale jets, while Ukraine secured an agreement for 16 jets last week.

The company delivered 13 Falcon and 12 Rafale jets in the first half, on track toward its full-year targets of 40 Falcon and 28 Rafale deliveries. Its backlog stood at €45.36 billion at the end of June, comprising 208 Rafale and 83 Falcon aircraft.

The FCAS stalemate contrasts with the rival Global Combat Air Program, where BAE Systems, Leonardo and Mitsubishi Heavy Industries secured a contract this month to develop a new stealth fighter jet by 2035.

The earnings beat on sales and profit suggests Dassault's core operations remain healthy despite the order drought, supported by its €45.36 billion backlog. Investors will watch for progress on the India Rafale deal and any update on the FCAS alternative in the coming months.

This article is for informational purposes only and does not constitute investment advice.