How Thales CEO Patrice Caine Plans to Nearly Double Revenue
Technology firm Thales, recognising the growing urgency of digital security, projects its revenue to exceed €25bn (US$31.6bn) by 2028, driven largely by a strong cybersecurity portfolio that has expanded significantly in recent years.
Last year, Thales generated €18bn in revenue with EBIT at €2.1bn.
To achieve this growth, CEO Patrice Caine is betting on the ever-increasing need for cybersecurity.
Thales operates in 56 countries worldwide, including Europe, America, Asia-Pacific and the Middle East/Africa.
Growing profit margins and clientele
Thales has set a goal of achieving an operating profit margin of 13-14% by 2028, an increase from the 11.6% it reported in 2023. This growth aligns with the company's increased focus on premium cybersecurity offerings.
While traditional defence contracts and aerospace have historically driven revenue, cybersecurity now constitutes a substantial part of Thales' growth strategy, promising higher returns due to the increasing complexity and cost of digital threats.
The demand for robust cybersecurity solutions among financial services is mounting. In response, companies such as Thales, equipped to address these challenges, are positioning themselves as indispensable partners.
Thales CFO Pascal Bouchiat recently affirmed the company's resilience in the US market, pointing to a robust cybersecurity portfolio that has expanded beyond Europe.
Thales' focus on cybersecurity solutions positions it well amid potential defence spending increases in Europe and a shifting US policy on cybersecurity on critical infrastructure.
Thales CEO defines its strategy
Since Patrice Caine took the helm as CEO nearly a decade ago, Thales has redefined its strategy, prioritising cybersecurity by acquiring high-value assets such as chipmaker Gemalto in 2019 and, more recently, the US cybersecurity firm Imperva.
This shift reflects the company's foresight in recognising cybersecurity as a critical business area amid heightened digital risks.
Caine says Thales plans to cater for industries such as finance and energy, which are more willing to invest in high-quality, specialised software due to the stakes involved.
The aligns with findings from law firm Mayer Brown, which reported that nearly 80% of leaders in finance view cybersecurity as essential for future readiness.
Financial firms, dealing with sensitive and heavily regulated data, find themselves particularly vulnerable.
The risks associated with data breaches are staggering, as seen in Equifax's 2017 breach, which resulted in over US$1bn in penalties and a severe blow to the company’s reputation.
Why Thales is banking on cybersecurity
In today’s volatile threat landscape, cybersecurity threats present an issue not only to a company’s current operations, but its ability to expand.
This has become all the more pressing in the age of digital transformation and AI, as although this new infrastructure brings new capabilities, it also expands the attack surface.
Therefore, companies which can help enterprises enter in this new age, securely, are reaping the rewards.
Advanced cybersecurity measures
With the rising integration of digital processes in business operations, cybersecurity threats have multiplied.
According to CrowdStrike, cyber intrusions have surged by 75%, underscoring the pressing need for advanced cybersecurity measures.
This is increased by the new attack surface, augmented by the sophistication of cyber threats which have escalated in tandem with advancements in digital transformation technologies like AI.
In this uncertain landscape, firms that can provide robust cybersecurity solutions, such as Thales, are not only mitigating risks for their clients but also generating substantial growth.
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