Dassault Aviation: Defense Exports Power Growth

French aerospace manufacturer Dassault Aviation started 2026 with strong financial results. Revenue for the first half of the year increased by 50% to €4.2 billion, while net income rose to €496 million. The main driver was export deliveries of Rafale fighter jets, whose demand continues to grow amid rising global defense spending.

During the first half of the year, the company delivered 10 Rafale aircraft for export, compared with just 4 in the same period last year. As a result, defense exports accounted for 51% of total revenue, while free cash flow reached €1.2 billion. Cash and cash equivalents increased to €10.1 billion, making Dassault one of the financially strongest companies in the European defense sector.

Despite a decline in new orders compared with last year's record level, the order backlog remains impressive at €45.4 billion, including 208 Rafale aircraft awaiting delivery.

Additional catalysts emerged after the reporting period: France and Ukraine agreed on a roadmap for the acquisition of 16 Rafale fighter jets, while India continues negotiations over a potential order for 114 aircraft.

At the same time, the company confirmed the termination of its participation in the European FCAS/NGF program and intends to develop its next-generation combat aircraft either independently or together with new partners.

Andrievskii Verdict

Dassault Aviation remains one of the most attractive defense companies in Europe. The company is entering a period of sustainable long-term growth, supported by a record order backlog, solid profitability, and strong cash generation. As defense budgets continue to expand across Europe, the Middle East, and Asia, Rafale exports are expected to remain a key driver of financial performance, while new international contracts with Ukraine, India, and other countries could provide an additional catalyst for the company's long-term valuation growth.

Aleksei Andrievskii | Advisory Board Member, Bendura Bank AG | Liechtenstein