Thales Flags Impact from Germany's Cancelled Frigate Program
Thales (HO.PA) detailed the impact of Germany's cancelled F-126 frigate program, in which it was among the subcontractors enlisted by Dutch shipyard Damen Schelde Naval Shipbuilding in 2020. The defense technology group said July 3 it expects a 350 million-euro impact on its net income, group share, for the first half. It also estimates a "limited" 0.5% impact on its group sales for 2026, and lower than 1% per year in the coming years. Thales added that it will record an exceptional and mostly non-cash charge of 450 million euros for the six-month period, reflecting costs it already paid and a "conservative" estimate of potential financial compensation. The company intends to claim all rights to secure compensation for its work under the project and for the prejudice resulting from the cancellation.
Thales (HO.PA) detailed the impact of Germany's cancelled F-126 frigate program, in which it was among the subcontractors enlisted by Dutch shipyard Damen Schelde Naval Shipbuilding in 2020.
The defense technology group said July 3 it expects a 350 million-euro impact on its net income, group share, for the first half.
It also estimates a "limited" 0.5% impact on its group sales for 2026, and lower than 1% per year in the coming years.
Thales added that it will record an exceptional and mostly non-cash charge of 450 million euros for the six-month period, reflecting costs it already paid and a "conservative" estimate of potential financial compensation.
The company intends to claim all rights to secure compensation for its work under the project and for the prejudice resulting from the cancellation.