Dassault Aviation shares climbed after the French aerospace group posted a strong set of sales and earnings for the first half of the year despite booking sharply lower orders.

Sales grew to 4.16 billion euros ($4.75 billion) from 2.85 billion euros a year earlier. Analysts had forecast 3.33 billion euros in sales, according to Visible Alpha. Meanwhile, operating profit increased to 330 million euros from 180 million euros, also well above analysts' forecast of 243 million euros. Figures are adjusted for gains and losses from hedging instruments, foreign exchange derivatives and other items.

Shares in Paris gained over 8% in Thursday morning trade. The stock is up nearly 20% over the past 12 months, underscoring appetite for its Rafale fighter and Falcon business jets. Berenberg analyst George McWhirter wrote in a note to clients that the company had a stellar performance in the first half, making its annual guidance more achievable.

The group is targeting sales of roughly 8.5 billion euros this year, with deliveries of 40 Falcon and 28 Rafale jets. Orders fell to 2.88 billion euros from nearly 8.08 billion euros a year earlier. Clients didn't place any bookings for the Rafale as expected, but ordered 23 Falcon jets.

Chief Executive Eric Trappier said French President Emmanuel Macron and Ukrainian President Volodymyr Zelensky announced an agreement that would grant Kyiv access to a suite of advanced French military technology, including the acquisition of 16 Rafale jets. He also said the company was working to finalize a contract for India to acquire 114 of its Rafale fighter jets.

Meanwhile, the group said discussions with the French government were underway to find an alternative to the Future Combat Air System program, or FCAS, an initiative to build a sixth-generation manned fighter jet by 2040.

France and Germany recently halted that program--which included Airbus, Dassault Aviation and Indra Sistemas--after a spat between Airbus and Dassault Aviation over which company should take the lead on the fighter jet's development was never resolved.

Trappier said an alternative to FCAS could be launched purely on a French basis or in cooperation with other companies and governments.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

July 23, 2026 04:13 ET (08:13 GMT)

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