Safran Sa Ord (SAFRF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to the Saffron first quarter 2026 revenue. At this time, I would like to turn the conference over to your host, Olivier Andries, Saffron CFO, and Pascal Montigny, Group CFO. Mr. Andries, please go ahead. Thank you. Good morning, everyone, and thank you for joining us. We had a very strong first quarter with revenue reaching 8.6 billion euros, up 23% organically. We continue to benefit from a solid momentum in both aerospace and defense, with little to no impact from the Middle East conflict so far. Once again, our main growth driver is aftermarket. We saw vigorous demand across the board, especially for commercial engines, and nacelles. Sales of spare parts for civil aircraft engines were up 29%, mostly thanks to the CF-156. Services for civil aircraft engines increased by 43%, with LEAP red-per-cylinder contracts leading the way. At the same time, Basing on our excellent industrial performance in the second half of 2025, we continued the deep ramp-up, with more than 500 deliveries this quarter, up 63% year-on-year, and marking the third consecutive quarter with deliveries above this level. Overall, the strength of our Q1 performance reinforces our confidence in reaching the high end of our full year 2026 guidance. That said, we remain cautious for the coming months, given the uncertainty around the scale, duration, and potential impact of the Middle East conflict, notably on air traffic. A few words on our portfolio management. In January, we completed the divestment of staff from Passenger Innovations, And more recently, we announced the acquisition of a partner, Symfony, leader in resident navigation technologies for complex and denied environments. Turning to slide four, we continue to raise our industrial capacity for the in both civil and defense activi...