Company Reports

Safran raised 2026 recurring operating income guidance by EUR 300 million to EUR 6.4 billion-EUR 6.5 billion and free cash flow by EUR 300 million to EUR 4.7 billion-EUR 4.9 billion after civil engine spare parts grew 28%, Leap deliveries grew 41%, and group margin rose to 18.4% in the first half.

Safran is a key player in global commercial and military aerospace propulsion and equipment. CFM, the 50/50 joint venture between Safran and GE Aerospace, has about 70% of the narrow-body market, positioning Safran to take advantage of the aerospace industry recovery after the covid-19 setback and the Russia-Ukraine war, which led to commodity price surges and supply chain disruptions.

Safran’s first-half revenue rose 19% to EUR 17.6 billion, recurring operating income increased 29% to EUR 3.24 billion, and free cash flow reached EUR 2.62 billion. Management raised 2026 EBIT guidance to EUR 6.4 billion-EUR 6.5 billion and free cash flow guidance to EUR 4.7 billion-EUR 4.9 billion

Safran reported revenue of EUR 8.6 billion, up 23% organically, driven by civil aftermarket (spare parts up 29%, services up 43%) and LEAP deliveries of 520 engines, up 63% year over year.

Safran is a key player in global commercial and military aerospace propulsion and equipment. CFM, the 50/50 joint venture between Safran and GE Aviation, has about 70% of the narrow-body market, positioning Safran to take advantage of the aerospace industry recovery after the covid-19 setback and the Russia-Ukraine war, which led to commodity price surges and supply chain disruptions.

Safran reported full-year 2025 results ahead of expectations, with recurring operating income of EUR 5.2 billion and free cash flow of EUR 3.9 billion, supported by civil aftermarket strength, improved execution in equipment and defense, and a material reduction in cash drag from aircraft interiors.

Safran’s third-quarter revenue rose 13% to EUR 6.5 billion, driven by record Leap engine deliveries, strong CFM56 engines' aftermarket pricing, and solid growth in equipment and defense. Management raised full-year guidance across revenue, EBIT, and cash flow despite tariff headwinds.

Safran delivered a record first-half 2025 performance, with group revenue up 13% organically to EUR 14.8 billion and operating income up 27% to EUR 2.5 billion, achieving a 17% margin—at the midpoint of its 16%-18% medium-term target.

Safran is a key player in global commercial and military aerospace propulsion and equipment. CFM, the 50/50 joint venture between Safran and GE Aviation, has about 70% of the narrow-body market, positioning Safran to take advantage of the aerospace industry recovery after the covid-19 setback and the Russia-Ukraine war, which led to commodity price surges and supply chain disruptions.

Wide-moat Safran reported strong 2025 revenue of EUR 7.26 billion, up 16.7% year on year, driven by strong aftermarket demand across civil aviation and defense. We maintain our fair value estimate without incorporating any potential impact from tariffs as we view the risk as muted and unlikely to materialize or remain in effect for long. The aviation sector has historically benefited from a tariff-free regime, reflecting its global interdependence. The significant cost inflation tariffs would impose on airlines, original equipment manufacturers, and ultimately consumers would make broad implementation economically and politically unmaintainable. This view is reinforced by recent developments, including China’s decision to exempt engines, nacelles, and landing gears from tariffs to protect its domestic aviation growth. Moreover, demand fundamentals in aerospace, particularly in aftermarket spares, remain strong and are not expected to be materially hit by moderate price surcharges.

Safran is a key player in global commercial and military aerospace propulsion and equipment. CFM, the 50/50 joint venture between Safran and GE Aviation, has about 70% of the narrow-body market, positioning Safran to take advantage of the aerospace industry recovery after the covid-19 setback and the Russia-Ukraine war, which led to commodity price surges and supply chain disruptions.

Safran delivered record revenue, profits, and cash flow in 2024, driven by strong aftermarket activity, particularly for civil engines. The CFM56 fleet, with over 10,000 aircraft in service, remains a key driver of long-term aftermarket revenue. Total revenue reached EUR 27.3 billion, 17.1% organic growth, with a 150-basis-point EBIT margin expansion to 15.1%, supported by aftermarket pricing and mix benefits in propulsion. We increase our fair value estimate to EUR 286 to reflect updated aftermarket assumptions.

In the third quarter of 2024, wide-moat Safran reported a notable revenue increase to EUR 6.6 billion, achieving 17% organic growth year over year. This significant growth, which fell short of expectations, occurred despite ongoing supply chain bottlenecks that hit delivery rates.

Safran reported robust second-quarter and half-year results, with revenue growing by 19% in the first half of 2024 compared with the same period in 2023, despite fewer-than-expected original equipment deliveries in propulsion. The company achieved a recurring operating margin of 15.1%, an increase of 2.3 percentage points year over year, representing a 41% improvement.

Wide-moat Safran reported a strong set of results for first-quarter 2024, driven by narrow-body air traffic available seat kilometers, ahead of 2019 levels, with full-year narrow-body ASK at 113% of 2019's level and wide-body ASK at 94% of 2019 levels. The firm lowered the original equipment delivery rate of Leap engines for 2024 to 10%-15% compared with previous guidance of 20%-25% as Boeing decreased production rates below 38 planes a month in the short term to ensure stricter controls. However, Boeing plans to increase production again in second-half 2024 and deliver up to 50 planes a month by 2027. With the increase in ASK, lower deliveries, and low retirement rates, we expect strong demand in the aftermarket for legacy CFM56 engines—currently 70% of the firm's total fleet—to offset the short-term decrease in Leap engines. We maintain our fair value estimate.

Safran is a key player in global commercial and military aerospace propulsion and equipment. CFM, the 50/50 joint venture between Safran and GE Aviation, has about 70% of the narrow-body market, positioning Safran to take advantage of the aerospace industry recovery after the COVID-19 setback and the Russia-Ukraine war, which led to commodity price surges and supply chain disruptions.

Wide-moat Safran reported a strong set of results for full-year 2023, driven by narrow-body air traffic available seat kilometers, or ASK, ahead of 2019 levels, with full-year ASK at 105% of 2019's level. Strong demand in original equipment and aftermarket underpins our positive midterm outlook, and we maintain our fair value estimate.

Wide-moat Safran reported a strong set of results for the third quarter, driven by narrow-body air traffic available seat kilometers ahead of 2019 levels, with second-quarter ASK at 107% of the third-quarter 2019 level. Management raised its revenue outlook for the full year. Narrow-body demand ahead of 2019 levels, coupled with pent-up demand in original equipment and aftermarket, supports our 2023 view, and we maintain our fair value estimate.

After taking a fresh look at Safran, MTU Aero Engines, and Rolls-Royce, we have confirmed our economic moat ratings but materially increased our fair value estimates to account for a post-COVID-19 air traffic recovery in civil aerospace and pent-up demand in the original equipment segment and aftermarket.

Safran is a key player in global commercial and military aerospace propulsion and equipment. CFM, the 50/50 joint venture between Safran and GE Aviation, has about 70% of the narrow-body market, positioning Safran to take advantage of the aerospace industry recovery after the COVID-19 setback and the Russia-Ukraine war, which led to commodity price surges and supply chain disruptions.