Falcon Delivery Boost Drives Revenue Growth at Dassault

Increased deliveries of both Falcon business jets and Rafale fighters boosted Dassault’s 2025 balance sheet. Announcing 2025 results this morning, the French aerospace and defense group reported revenues of €7.4 billion, up 19% from 2024.

However, Dassault chairman and CEO Éric Trappier warned of tough trading conditions complicated by multiple factors. “The military, geopolitical, and budgetary contexts, coupled with tariffs, are creating uncertainty for business activity,” he told reporters in Paris. “At the same time, tax pressure erodes the company’s competitiveness.”

A French government tax surcharge of €96 million, on top of other taxes totaling €186 million, has dented Dassault’s operating profits, which nonetheless increased by 22% to €635 million. Trappier said this burden risks undermining Dassault’s competitiveness in the business jet sector with U.S. and Canadian rivals Gulfstream, Bombardier, and Textron Aviation, among others.

In the U.S. market, the tariffs introduced in the first half of 2025 also negatively affected Dassault’s balance sheet, and Trappier acknowledged that more uncertainty, culminating in the recent Supreme Court ruling against some aspects of the policy, has clouded plans for the business aviation market. “Where there are no issues now [given that aerospace products are largely exempt from tariffs], we don’t know what the future will bring with Mr. Trump,” he concluded.

On top of fiscal burdens at home and abroad, Trappier highlighted cause for concern in global markets in the wake of the U.S.-Israeli conflict with Iran. “What is happening in the Gulf will have consequences if the conflict continues for any length of time, and that is on top of the war in Ukraine,” he commented.

Falcon and Rafale Deliveries Increase

Last year, Dassault delivered 37 Falcons—six more than it did in 2024 but below its guidance target of 40 aircraft. During the same period, the company delivered 26 Rafales—15 for export customers and 11 for France—which was five more units than in 2024. Last year, it logged 31 net Falcon sales, five more than in 2024.

The group’s order backlog, valued at €46.6 billion, includes 220 Rafales and 73 Falcons. Trappier said Dassault is targeting further reductions in manufacturing times and cycles as part of efforts to boost productivity and competitiveness.

The group’s guidance for investors in 2026 envisages production of 40 Falcons and 28 Rafales. If that is achieved, it could result in revenues increasing by almost 15% to €8.5 billion.

The most recent addition to the Falcon in-service lineup, the 6X model, has now logged more than 7,000 hours, and Trappier said that the response from new owners has been very positive. Now, Dassault is in “the final stages” of manufacturing the first example of the new 10X model, which is being prepared for the start of flight testing.

On the military side of its business, priorities for Dassault this year include firming up a pending order for 114 Rafales from the Indian government that would be based on a complex industrial commitment in that country. Far more complex, however, are political discussions closer to home, where moves to realign Europe’s defense strategy based on higher levels of investment have raised further questions over the partnership intended to develop the Future Combat Air System. On this note, Trappier held the line in his insistence over Dassault’s continued leadership of this long-running program in the face of political pressure from Germany.

Falcons continue to be part of Dassault’s defense portfolio. This year, the group is preparing to deliver the first modified Falcon 2000 for the Albatros maritime surveillance and response platform, and it is also developing the Falcon 8X-based Archange strategic intelligence platform.