A project that saves jobs. The contract linked to the future European constellation of Iris2 satellites contributed to the increase in orders for the high-tech group Thales, until now mainly driven by defence, ensuring the end of job cuts in the space sector. This contract, valued at more than 100 million euros, marks the first engineering phase of the Iris2 constellation project, key for European security and for the reactivation of a communications satellite sector weakened by the dominance of Starlink, Elon Musk’s megaconstellation.
Questioned, he confirmed that “taking into account the Iris2 project”, the elimination of positions in its space branch had been “suspended”, after having already redeployed 75% of the employees. In June, the group reported a “slowdown” in the implementation of its “adaptation plan” launched in March 2024 by management and affecting 1,300 employees in the space sector, of which 980 in France.
This announcement, however, risks rekindling the anger of the unions: the CGT of Thales Alenia Space has taken the management to court, denouncing a “deterioration in the health of employees” related to the job cuts plan. The union asks the judge to impose on management the “complete and definitive” end of this plan, as well as a hiring plan “that adjusts to the workload.” “Telecommunications activity in the space sector remains under pressure,” stressed Pascal Bouchiat. “The fact that we have this first development contract at Iris Square does not eliminate all the challenges facing this industry in Europe. Starlink has not gone away,” he added.
Missiles for more than one billion euros
With four major contracts, three of them in defense, Thales’ quarterly orders increased by 37% compared to the same period of the previous year, up to 6.4 billion euros, according to a press release published on Thursday. In particular, the group obtained a contract worth more than one billion euros with the United Kingdom Ministry of Defense for the production and delivery of 5,000 LMM missiles for a third country. Two other orders worth more than 100 million euros are from the German Ministry of Defense for portable ground surveillance radars for a third country and from another European country for the supply of 70-millimeter ammunition.
During the first nine months of the year, order intake also increased by 8% to €16.8 billion. In the third quarter, turnover increased by 9.1% year-on-year, up to €4.95 billion. In nine months, the increase is 8.4%, up to 15.3 billion euros. Elements that allow “confidence to confirm” the annual financial objectives: Thales expects a growth in its turnover of 6 to 7% at constant perimeter and exchange rates of the order of 21.8 to 22 billion euros, and an operating margin of 12.2 to 12.4%.
Source: BFM TV
