Dassault 1H Revenue Nears €4.2B; Falcon Sales Rebound

Dassault Aviation’s first-half 2026 revenues rose 46% year over year, to €4.157 billion ($4.74 billion), while net orders of Falcons nearly tripled as chairman and CEO Éric Trappier cited a broad recovery in the business aviation market. This was tempered by supply chain strain and a French government tax surcharge that compressed profit margins.

Falcon net orders reached 23 in the first six months versus eight in the same period last year, which Trappier described as “a marked recovery in sales in 2026.” Dassault delivered 13 Falcons in the first half, one more than a year ago, generating revenue of €1.2 billion, up from €1.1 billion in first-half 2025. Dassault logged net orders for 31 Falcons for all of 2025.

Total order intake, including defense sales, reached €2.9 billion in the first half, down from the €8.1 billion in first-half 2025 that was boosted by an Indian navy order for 26 Rafale marine combat aircraft. With no comparable defense contract booked in the first six months this year, Falcon orders dominated the order intake. The 23 Falcons ordered in the first half added €1.9 billion in backlog, 65% of the group’s first-half total, compared with eight Falcons worth €900 million last year.

Thus, Falcon backlog expanded significantly, to 83 aircraft worth €5.4 billion as of June 30, up from 73 aircraft worth €4.7 billion six months earlier, reversing the gradual backlog erosion over the past few years. Trappier attributed the order rebound in part to a lift in Asian demand. He described the U.S. market as remaining static and characterized the core Falcon customer base as primarily corporate. “The majority of our clients are companies that need to run their business efficiently,” he said.

Supply chain constraints, however, continue to weigh on delivery timelines. “Some suppliers are falling behind,” Trappier said, noting the problem extends industrywide.

Trappier also cited ongoing geopolitical uncertainty—including the war in Ukraine and continuing hostilities in the Middle East—as factors complicating business planning. On a positive note for the European business aviation sector, he said Dassault had received a positive ruling in a legal challenge to EU tax rules that, Trappier argued, had discriminated against European-manufactured business jets while leaving U.S.-built aircraft unaffected. “We won the case,” he said, adding the European Commission may appeal.

Operating income reached €330 million in the first half, with an operating margin of 7.9%, up from €180 million and 6.3% in first-half 2025. Net income rose to €496 million, but was weighed down by a €74 million French corporate tax surcharge. Trappier warned the levy was eroding Dassault’s competitiveness, noting that sustained fiscal pressure is pushing companies and suppliers toward more competitive jurisdictions in Spain, Portugal, the U.S., and elsewhere. “It mustn’t last,” he said of the surcharge.

Self-funded research and development spending declined to €131 million from €182 million in the first six months. Trappier characterized the reduction as logical, noting that the 6X program has moved past its development peak while the Falcon 10X is now past its most engineering-intensive phase following its first flight last month.

The group’s total order backlog stood at €45.4 billion at June 30, compared with €46.6 billion at December 31, 2025, reflecting the absence of a major new defense contract in the first half. The Rafale backlog accounted for 208 aircraft remaining to be delivered. Dassault also noted that France and Germany mutually agreed to halt the FCAS/NGF next-generation fighter program during the period, with discussions underway on a possible French or collaborative demonstrator.

Consolidated available cash rose to €10.1 billion at June 30 from €9.4 billion at year-end 2025, supported by advances received under Rafale export contracts, with free cash flow of €1.2 billion for the period. Full-year guidance remains unchanged at €8.5 billion in revenues, encompassing deliveries of 40 Falcons and 28 Rafales.