- Increased Operating Income Guidance: Safran raises its full-year adjusted recurring operating income forecast to between €5 billion and €5.1 billion, compared to the previous range of €4.8 billion to €4.9 billion.
- Free Cash Flow Forecast Raised: The company increases its free cash flow projection to between €3.4 billion and €3.6 billion, up from the earlier expected range of €3 billion to €3.2 billion.
- First Half Financial Performance:
- Adjusted recurring operating margin improved to 17%, up from 15.1% year-over-year, surpassing the estimate of 16.2%.
- In the Propulsion segment, the margin was 23.3%, an increase from 19.9% year-over-year, exceeding the 22% estimate.
- Equipment & Defense segment recorded a margin of 12.5% versus 12.7% year-over-year, aligning with the 12.7% estimate.
- Aircraft Interiors margin was at 1.7%, up from 0.7% year-over-year, but below the 2.2% forecast.
- Growth in Adjusted Operating Income: Adjusted recurring operating income grew by 27% year-over-year to €2.51 billion, surpassing the estimate of €2.38 billion.
- Increased Revenue: Adjusted revenue reached €14.77 billion, marking a 13% increase year-over-year, slightly below the estimate of €14.82 billion.
- Propulsion Revenue Surge: Adjusted revenue in the Propulsion segment rose by 17% to €7.54 billion, surpassing the €6.87 billion forecast.
- Equipment & Defense Revenue Uptick: Revenue in this segment was €5.61 billion, up 8.5% year-over-year, exceeding the estimated €5.29 billion.
- Aircraft Interiors Revenue Increase: The segment’s revenue grew by 15% to €1.62 billion, outperforming the forecast of €1.47 billion.
- Net Income and EPS: Adjusted net income reached €1.59 billion, an 11% year-over-year increase, matching expectations. Adjusted diluted EPS rose to €3.80 from €3.27, slightly below the estimate of €3.83.
- Significant Free Cash Flow Growth: Free cash flow more than doubled to €3.19 billion from €1.46 billion year-over-year, exceeding the estimate of €1.8 billion.
- Engine Deliveries:
- LEAP engine deliveries increased by 9.8% year-over-year to 729, well above the average estimate of approximately 500.
- CFM56 engine deliveries decreased by 7.1% year-over-year to 26 units.
- Outlook and Comments: Safran upgraded its full-year 2025 outlook and expects low-teens revenue growth. The company continues to manage potential tariff exposures proactively.
Safran SA on Smartkarma
Analyst coverage of Safran SA on Smartkarma is gaining attention, particularly with the recent report from Baptista Research. In their analysis titled “Safran: Initiation of Coverage- Will the LEAP Engine Ramp-Up Reverse Its Stock Slide?“, Baptista Research highlights Safran’s robust financial performance in 2024. The company reported record highs in revenue, profit, and cash flows, with revenue increasing by 18% to €27.3 billion. This growth was mainly attributed to a significant 25% increase in civil aftermarket activities. Furthermore, Safran’s operating margin saw a notable improvement of 150 basis points to 15.1%, driven by operational excellence and strong aftermarket demand.
The overall sentiment of Baptista Research‘s coverage leans towards the bullish side, indicating optimism regarding Safran’s future outlook. As independent analysts continue to publish valuable insights on platforms like Smartkarma, investors gain access to in-depth research that can help inform their investment decisions. Keeping abreast of such detailed analyses, like the one provided by Baptista Research, is crucial for investors looking to stay informed and make well-founded investment choices in the dynamic market landscape.
A look at Safran SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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 seems to have a promising long-term outlook. The company excels in Growth and Momentum, with top scores in these areas indicating a strong potential for future development and market performance. Safran SA‘s strategic focus on expansion and ability to capitalize on market trends bode well for its growth trajectory.
Although Safran SA scores moderately in areas like Value and Dividend, its Resilience score suggests a stable operational foundation. This, combined with its high scores in Growth and Momentum, positions the company favorably for long-term success. In summary, Safran SA‘s diverse product portfolio and focus on innovation within the aerospace, defense, and security sectors underpin a positive outlook for the company’s future performance.
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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