Dassault CEO warns FCAS could unravel without clear lead role, shares rise

Dassault Aviation (DUAVF) shares climbed Wednesday after Chief Executive Eric Trappier warned that the Future Combat Air System, Europe’s flagship next-generation fighter program, could fail unless Airbus (EADSF) (EADSY) eases tensions between the project’s biggest partners.

FCAS is a joint effort involving Dassault, Airbus and Spain’s Indra Sistemas (ISMAF) (ISMAY) to develop a sixth-generation manned fighter jet by 2040, with artificial intelligence, advanced stealth and connectivity to drones and a broader “combat cloud.” The program’s total cost has been estimated at about 100 billion euros ($116.4 billion).

Leadership dispute spills into public view

Trappier said the program is at risk as the French plane maker and Airbus remain at odds over who should lead the fighter aircraft’s design work and how responsibilities are divided among contractors.

“Airbus doesn’t want to work with Dassault and I understand that,” Trappier said during a press conference. “Airbus wants to work alone. This project is stalling.”

Airbus wasn’t immediately available for comment. Its CEO Guillaume Faury said last month that Europe still needed the program and that it could only be delivered through cooperation, even if talks were at a difficult point.

France, Germany and Spain had aimed to resolve the dispute by the end of last year, but the timeline has since slipped without a new deadline.

Trappier said Airbus pushed to take a leading role after Dassault proposed changes meant to clarify Dassault’s leadership on the fighter-jet portion of FCAS. He also said the French government doesn’t support an idea, floated by Faury, that would involve building two aircraft as a way to ease the impasse.

“The issue is not with Germany, it is with Airbus,” Trappier said. “If Airbus doesn’t want to work with Dassault, then the project might not go through.”

Results beat expectations, guidance cautious

Trappier’s comments came as Dassault reported 2025 sales of 7.43 billion euros, up from 6.24 billion euros a year earlier and above a 7.04 billion-euro consensus estimate compiled by Visible Alpha. Shares were up about 3.9% in European mid-day trading.

Backlog increased to 46.60 billion euros from 43.22 billion euros in 2024, though it fell short of a 48.31 billion-euro consensus forecast.

Dassault said it booked export orders for 26 Rafale fighter jets and production orders for 31 Falcon aircraft. Order intake edged up to 10.94 billion euros from 10.87 billion euros, above analyst expectations of 10.795 billion euros.

Net profit rose to 977.4 million euros from 923.8 million euros, topping forecasts for 913.68 million euros.

For 2026, Dassault guided for net sales of up to 8.5 billion euros and deliveries of 28 Rafale and 40 Falcon aircraft.

The company this year expects a deal with India for 114 Rafale jets, Trappier said.