Thales: Positioned For Europe's Defense Boom With Steady Growth

Thales remains a buy, targeting 12%–27% upside based on 2026–2027 earnings and higher EV/EBITDA multiples. THLLY delivered 7.6% sales growth and 14% organic EBIT growth in 2025, with margin expansion and 27% higher free cash flow. 2026 guidance targets 5–7% sales growth, 12.6–12.8% EBIT margins, and 95–100% free cash flow conversion, with defense and aerospace leading.