Safran Sa · EURONEXT:SAF
Safran Sa — Safran Sa Ord — H1 2026 Earnings Presentation
27 slides from Safran Sa's earnings presentation, Jul 28, 2026
Slide 1: H1 2026 Results
H1 2026 RESULTS July 28, 2026 Olivier ANDRIES Chief Executive Officer Pascal BANTEGNIE Chief Financial Officer
Slide 2: Disclaimer & foreword
Disclaimer & foreword FORWARD-LOOKING STATEMENTS This document contains forward-looking statements relating to Safran, which do not refer to historical facts but refer to expectations based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could
Slide 3: H1 2026 key highlights
H1 2026 key highlights ▪ Exceptional demand for civil engine aftermarket In €M Revenue(1) In €M Recurring operating income(1) & margin(2) • Spare parts for civil aircraft engines +27.9% (in $), led by CFM56 17,571 +19% +29% 3,237 • Services for civil aircraft engines +40.4% (in $) 14,769 2,510 +20.2
Slide 4: Civil business highlights
Civil business highlights Ramp-up LEAP Preparing the future of flight ▪ LEAP engines: new maintenance MRO shop The engine of choice on narrowbody platforms ▪ Hybrid-electric propulsion: Electra selected opened in Querétaro to reach 350 LEAP SV Safran’s TG600 600kW turbogenerator to capacity (Mexico)
Slide 5: RISE: Advancing Open Fan toward ground and flight-test demonstration this decade
RISE: Advancing Open Fan toward ground and flight-test demonstration this decade Open Fan toward demonstration Full-size hardware & durability Hybrid-electric maturity ▪ ~500 test campaigns, >5,000 endurance and ▪ Testing real, full-size Open Fan hardware ▪ Full-scale hybrid-electric demonstrator te
Slide 6: Defense business highlights
Defense business highlights Expanding local presence Deliver mission-critical equipment Ramp-up in defense activities through partnerships and solutions in defense ▪ HRG inertial navigation systems: €120M ▪ EDGE Group (UAE), Baykar (Turkey), SatSure ▪ Eurosatory defense show: highlighting strong inv
Slide 7: H1 2026 RESULTS
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Slide 8: FX: Estimated net exposure ($bn)
FX Estimated net exposure(2) ($bn) ▪ 2026 hedge rate set at $1.12 16 17 17 17 ▪ $59.5bn hedge book(1) as of June 2026 ($58.6bn as of March 2026) Spot rate €/$ H1 2025 H1 2026 2026e 2027e 2028e 2029e 2030e €/$ hedge Average spot rate 1.09 1.17 rate target 1.12 1.12 1.12 1.12 – 1.14 n.d. June 30th rat
Slide 9: H1 2026 revenue and recurring operating income
H1 2026 revenue and recurring operating income Revenue Recurring operating income In €M itle +19% In €M +29% 691 3,201 63 3,237 2,984 17,753 560 17,571 (26) 14,769 2,510 (742) 18.4% 17.0% +20.2% org. +27.5% org. H1 2025 Organic H1 2026 Currency Change H1 2026 H1 2025 Organic H1 2026 Currency Change
Slide 10: H1 2026 income statement
H1 2026 income statement (In €M) H1 2025 H1 2026 Revenue 14,769 17,571 Other recurring operating income and expenses (12,335) (14,454) Share in profit from joint ventures 76 120 Including program impairment charges, M&A Recurring operating income 2,510 3,237 transactions costs, and the impact of the
Slide 11: Propulsion
Propulsion ▪ Civil engines (In €M) H1 2025 H1 2026 Change Organic Change • Significant aftermarket revenue growth o Spare parts up 27.9% in $ (26.8% in Q2) notably driven by favorable Revenue 7,541 9,178 21.7% 27.7% workscope mix on CFM56 and by increased contribution from the LEAP (higher workscope
Slide 12: Equipment & Defense
Equipment & Defense ▪ Equipment (In €M) H1 2025⁽¹⁾ H1 2026 Change Organic Change • OE increased across the board notably on nacelles and electrical systems Revenue 5,609 6,932 23.6% 14.0% • Aftermarket services increased across the board, with a significant increase in electrical systems (driven not
Slide 13: Aircraft Interiors
Aircraft Interiors ▪ Cabin (In €M) H1 2025⁽¹⁾ H1 2026 Change Organic Change • OE volumes growth driven by A350 (Lavatories), 737 (Galleys), and A320 (Galleys) Revenue 1,616 1,455 -9.9% 6.6% • Increased aftermarket led by spare parts, notably on A350 and A220 Recurring operating income 27 54 27 % of
Slide 14: H1 2026 Free Cash Flow
H1 2026 Free Cash Flow (In €M) H1 2025 H1 2026 Recurring operating income 2,510 3,237 One-off items (37) (177) Amortization, provisions and depreciation (excl. financial) 686 726 EBITDA 3,159 3,786 EBITDA +24% Income tax and non cash items (369) (312) Cash from operating activities before change in
Slide 15: H1 2026 net cash evolution
H1 2026 net cash evolution (In €M) €2,616M Free Cash Flow S&P: A- since December 2022 3,474 122 (980) Upgrade to Positive outlook in July 2026 Change (1,452) in WC R&D Capex (913) Dividends(1) 33 (355) 1,738 1,667 Cash flow Share M&A Others(3) from ops repurchases(2) (1) Including €(62)M of dividend
Slide 16: FY 2026 Outlook
FY 2026 OUTLOOK
Slide 17: FY 2026 outlook upgraded on all metrics
FY 2026 outlook upgraded on all metrics Revenue Recurring operating income Free Cash Flow up mid-teens €6.4 - 6.5bn €4.7 - 4.9bn (prev. up low to mid-teens) (prev. €6.1 - 6.2bn) (prev. €4.4 – 4.6bn) Main assumptions ▪ Civil engines ▪ FX • LEAP deliveries up high-teens (previously ~15%) • €/$ spot ra
Slide 18: Appendix
APPENDIX S SAFRAN
Slide 19: Consolidated and adjusted income statements
Consolidated and adjusted income statements Change in Mark-to-Market of instruments hedging future cash flows CURRENCY HEDGING BUSINESS COMBINATIONS Consolidated Adjusted H1 2026 reconciliation (In €M) data Re-measurement Deferred hedging Amortization of intangible PPA impacts – other data assets of
Slide 20: Number of products delivered on major aerospace programs
Number of products delivered on major aerospace programs YoY change YoY change Number of units delivered H1'25 H1'26 Number of units delivered H1'25 H1'26 Units % Units % LEAP engines 729 1,030 301 41% A320 landing gear sets 320 315 (5) (2)% CFM56 engines 26 22 (4) (15)% A320neo nacelles 307 401 94
Slide 21: OE / Services revenue split
OE / Services revenue split REVENUE H1 2025 H1 2026 Adjusted data (in €M) OE Services OE Services Propulsion 2,623 4,918 3,284 5,894 % of revenue 34.8% 65.2% 35.8% 64.2% Equipment & Defense 3,364 2,245 4,177 2,754 % of revenue 60.0% 40.0% 60.3% 39.7% (1) Aircraft Interiors 1,000 616 880 575 % of rev
Slide 22: H1 2026: Research & Development
H1 2026: Research & Development (In M€) H1 2025 H1 2026 Change Total R&D (967) (1,105) (138) R&D sold to customers 318 404 86 R&D expenses stable at €701M in H1 2026. • R&T self-funded expenses at €364M, mainly towards R&D expenses (649) (701) (52) decarbonization (RISE technology development progra
Slide 23: H1 2026: Research & Development by activity
H1 2026: Research & Development by activity Equipment & Aircraft (In €M) H1 2026 Propulsion Defense Interiors R&D expenses (701) (345) (311) (45) as a % of revenue 4.0% 3.8% 4.5% 3.1% Tax credit 99 37 58 5 R&D expenses after tax credit (602) (308) (254) (40) Gross capitalized R&D 153 44 93 16 Amorti
Slide 24: Balance sheet as of June 30, 2026
Balance sheet as of June 30, 2026 (In €M) Dec 31, 2025 June 30, 2026 Goodwill 5,773 5,286 Tangible & Intangible assets and right of use 13,740 15,862 Investments in joint ventures and associates 1,892 1,946 Other non current assets 2,054 2,147 Operating Working Capital (4,890) (5,297) Net cash (debt
Slide 25: Liquidity as of June 30, 2026
Liquidity as of June 30, 2026 ▪ Cash and cash equivalent of €6,507 million June 30, 2026 Undrawn revolving credit facility €2,000M ▪ Net cash positive ▪ Debt management Gross debt €4,840M Cash & equiv. ▪ In March 2026, Safran redeemed at their scheduled €6,507M maturity the bonds amounting to €700M
Slide 26: Definitions
Definitions ▪ Spare parts (expressed in $) ▪ This non-accounting indicator (non-audited) comprises “Spare parts” revenue (in USD terms) for all civil aircraft engines (CFM56, LEAP, high-thrust engines) ▪ Services (expressed in $) ▪ This non-accounting indicator (non-audited) comprises “Services” rev
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