The ongoing conflict in the Middle East has led to increased demand for military equipment, according to France’s Thales Group. Pascal Bouchiat, the company’s finance director, indicated that since the outbreak of hostilities involving the United States and Israel against Iran, the defense and technology firm has seen a surge in urgent requests for weapons, including rockets and air surveillance systems. He anticipates that this rising demand could translate into higher deliveries during the second half of the year.

Bouchiat also highlighted a longer-term trend toward comprehensive defense system investments across the Middle East and other regions worldwide. “We see today a number of requests in air defense and air surveillance,” he told analysts following the release of Thales’s first-quarter results, which showed a 7% increase in sales to €5.3 billion. Looking ahead to 2026, the group remains optimistic about maintaining a strong momentum in defense order intake.

Thales is working on a new surface-to-air missile system, the SAMP-T NG, developed in partnership with Italy’s Leonardo and French missile company MBDA. The group believes this system could compete effectively with the U.S.-made Patriot missiles, particularly given the high consumption of American systems in the Gulf region. However, the company stressed the importance of fast delivery to capitalize on emerging opportunities.

Despite this positive outlook for order intake, Thales shares declined nearly 6% in Paris following the report. The firm cautioned that the increase in defense orders might not immediately impact revenues in the current year. It maintained its forecast for “high single-digit” growth in defense revenues for 2026 but noted potential risks from supply chain disruptions.

Other business areas saw less robust performance. Revenues from Thales’s cyber operations decreased by 4% in the first quarter. The company also issued a cautious statement on its aviation sector, which produces cockpit technology and maintenance services. Rising jet fuel prices and reduced airline capacity, driven in part by the Iran conflict, have pressured this division. Thales plans to review its overall guidance by mid-year.

In addition, the company is advancing undersea mine-hunting technology delivered to British and French navies. These systems employ unmanned vessels and underwater drones equipped to deploy charges near mines. Although still a minor segment of Thales’s business, Bouchiat acknowledged the strategic significance of these capabilities, citing regional tensions in the Strait of Hormuz as a prompt for renewed focus on maritime defense solutions.