Key points for investors:
- Strong 2025 performance: Safran reported record results across metrics with revenue of EUR 31.3bn (organic +14.8%), recurring operating income of EUR 5.2bn, operating margin of 16.6% (up 150 bps) and free cash flow of EUR 3.9bn (+23%). Net cash remains positive (~0.3x EBITDA).
- LEAP ramp and aftermarket strength: Delivered a record 1,802 LEAP engines in 2025 (up 28% YoY) and continued aftermarket outperformance (spare parts +18%, services +21% in Propulsion). Safran is investing in global LEAP OE and MRO capacity (new assembly/MRO lines in Morocco, India, Mexico, etc.) to support further ramp-up.
- 2026 guidance and 2028 upgrade: 2026 outlook: revenue up low- to mid-teens, recurring operating income EUR 6.1–6.2bn, free cash flow EUR 4.4–4.6bn (including an estimated EUR 470m French surtax). 2028 targets were raised: group revenue CAGR ~10% (2024–28), Propulsion margin target raised to 22–24%, Equipment & Defense mid-teens, Aircraft Interiors high single-digit; incremental EUR 1bn uplift to 2028 EBIT vs prior plan.
- Aftermarket and CFM56 visibility: CFM56 shop visits revised up to a plateau ~2,300–2,400 pa through 2028 (more than 750 additional shop visits vs prior CMD assumptions). LEAP external shop visits expected to grow (from ~15% in 2025 to ~30% by 2030).
- Defense momentum and portfolio actions: Defense & Space strong (defense electronics order intake book-to-bill of 1.6), multiple export and JV wins (e.g., Rafale export, HAMMER JV in India). Portfolio pruning continues: sale of Safran Passenger Innovations closed; further divestments (including JV stake in EasyAir/Embraer) expected in 2026.
- Capital allocation and balance sheet: Proposed dividend EUR 3.35/share (up 16%). Executing a EUR 5bn buyback program (partial execution in 2025; further tranches in 2026). 2025 inorganic spend included Collins actuation/flight controls acquisition; continued M&A discipline.
- FX and hedging: CFO reconfirmed a $1.12 hedge rate target for 2026, increased 2026 exposure to ~$16bn and $17bn from 2027; early hedges for 2029 targeting $1.12–1.14 given current markets.
- Industrial investments and resiliency: Approved ~EUR 1.4bn of industrial investment in 2025 to expand capacity (engines, MRO, defense production). Safran is also investing in forging/casting and supply-chain resiliency (including rare earths contingency).
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