French aerospace group Dassault Aviation reported an 83% jump in adjusted operating profit to €330 million in the first half, as exports of its Rafale fighter drove sales up 46% to €4.2 billion. New orders meanwhile fell sharply after last year’s figures were boosted by a 26-aircraft Indian Navy contract, leaving a potential 114-jet deal with India as the company’s biggest near-term order opportunity.
In the first half year reports, defence accounted for 71% of sales, with overseas exports making up 51% and French defence programmes a further 20%. Dassault delivered 12 Rafale jets during the period, including 10 to export customers, compared with seven a year earlier. Adjusted net income rose to €496 million, while the order backlog stood at €45.4 billion, covering 208 Rafale and 83 Falcon business jets.
New orders fell to €2.9 billion from €8.1 billion a year earlier. Defence orders accounted for €1 billion of the total, down from €7.2 billion in the same period last year, when the Indian Navy order accounted for much of the difference. The decline highlights the lumpy nature of Dassault’s order book, where a small number of large export contracts can have a substantial impact on annual order intake.
Dassault maintained its full-year guidance, targeting sales of around €8.5 billion and deliveries of 28 Rafale and 40 Falcon aircraft. The company said supplier delays remained a risk to delivery schedules.
Chief Executive Éric Trappier said negotiations for India’s planned purchase of 114 Rafale fighters remained the company’s “major strategic objective”. India issued a formal request for the aircraft in June, with some of the jets expected to be manufactured in India. If concluded, the contract would be Dassault’s largest defence export order.
The results highlight a different pattern from much of Europe’s defence industry, where rising government spending is increasingly driving domestic procurement. Dassault’s first-half growth was instead driven primarily by exports, while the company awaits major potential orders from India and other international customers to replenish its Rafale order book.
Other companies benefiting from rising defence spending include BAE Systems, Leonardo and Hensoldt.
