Defense giant Thales on soaring demand and critical bottlenecks

Summary

Thales CEO Patrice Caine says global defense demand is very high across Europe, the Middle East, Asia, Southeast Asia, and North America due to geopolitical tensions, and he expects it to remain elevated for at least a decade. He also notes that supply-chain bottlenecks in chips, skills, and electronic parts are improving but remain fragile because of global integration and potential government restrictions.

• Thales CEO reports defense demand is high worldwide.
• Demand driven by geopolitical situation, not only recent conflicts.
• Expectation that demand stays elevated for at least a decade.
• Bottlenecks in chips, skills, electronic parts are easing.
• Supply chains remain fragile due to global integration.
• Government decisions could restrict access to key ingredients.
• Resilience measures are being implemented but take time.