- Safran raised its 2025 outlook for adjusted recurring operating income to between €4.8 billion and €4.9 billion, an increase from its previous forecast of €4.7 billion to €4.8 billion.
- The estimate of €4.93 billion for adjusted recurring operating income was missed slightly.
- The company anticipates free cash flow to be between €3 billion and €3.2 billion, surpassing an earlier forecast of €2.8 billion to €3 billion.
- 2024 adjusted recurring operating margin improved to 15.1% from 13.6% year-on-year, narrowly missing the 15.2% estimate.
- Propulsion division’s margin increased to 20.6% from 20.1% y/y, slightly below the 21.3% estimate.
- The Equipment & Defense division’s margin rose to 12.2% from 11.2% y/y, close to the 12.4% estimate.
- Aircraft Interiors division achieved a 0.9% margin, a significant improvement from -4.7% y/y, though still under the 1.62% estimate.
- Adjusted recurring operating income for 2024 grew by 30% y/y to €4.12 billion, just under the estimated €4.17 billion.
- The company reported an 18% y/y increase in adjusted revenue to €27.32 billion, slightly surpassing the €27.26 billion estimate.
- Adjusted net income soared by 51% y/y to €3.07 billion, beating the €2.93 billion estimate.
- The adjusted EPS increased to €7.29 from €4.70 y/y, above the estimate of €6.92.
- Dividend per share was raised to €2.90 from €2.20 y/y, exceeding the estimate of €2.77.
- Free cash flow advanced by 8.3% y/y to €3.19 billion, surpassing the €3.03 billion estimate.
- Net cash at year-end stood at €1.74 billion, compared to €374 million y/y, and exceeded the estimate of €1.71 billion.
- LEAP engine deliveries fell by 10% y/y to 1,407, below the estimated 1,494 deliveries.
- CFM56 engine deliveries increased by 15% y/y to 60, higher than the estimate of 45.67.
- Safran still expects 2025 revenue to grow by around 10%.
- The 2025 outlook does not factor in potential impacts from new tariffs implementation.
A look at Safran SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Safran SA appears to have a positive long-term outlook. With high scores in Growth and Momentum, the company is positioned well for future expansion and market performance. Safran SA‘s strong focus on innovation and potential for revenue growth indicates a promising future in the aerospace, defense, and security sectors it operates in.
Furthermore, the company’s solid scores in Resilience suggest that Safran SA has the capability to navigate economic challenges and maintain stability over the long term. Although the Value and Dividend scores are moderate, the high ratings in other key areas indicate a favorable outlook for Safran SA‘s overall business performance in the coming years.
### Safran SA is an international tier-1 supplier of systems and equipment in aerospace, defense, and security. The Company offers a wide range of products including engines for various aircraft, landing and braking systems, identity documents, biometric equipment, and explosives detection systems. With a focus on innovation and growth, Safran SA is positioned for future success in its diverse market segments. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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