Safran Sa Ord (SAFRF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and thank you for being with us today. So, Q2 continued on the strong trends observed in Q1, resulting in an exceptional first half, marked by a stellar demand in the civil engine aftermarket, a strong ramp-up in LEAP and M88 engine deliveries, and record financial performance. The Middle East conflict barely impacted our performance. Civil aftermarket activity is remaining well above our pre-conflict forecasts. Spare parts sales for civil engines increased by 28% in dollar value and civil engine services also grew by more than 40%. All this despite the geopolitical context in the Middle East. CFM 56 continued to drive spare parts performance with a fleet benefiting from a low level of retirement combined with a very strong demand for aftermarket. LEAP is also expanding with a fast-growing number of show visits Significant wear scope increase and more shop visits being performed by third-party maintenance repair and overall shops. We delivered 1,030 LEAP engines in H1, a 41% increase year-on-year, aligning four consecutive quarters with over 500 deliveries. All of this translated into record financial performance. Revenue reached 17.6 billion euros, up 20% on an organic basis. Recurring operating income climbed by 29% to 3.2 billion, representing an unprecedented operating margin of 18.4%. Free cash flow was even stronger, up 43% to 2.6 billion euros. Given this robust performance and the strong visibility in front of us, we are raising our four-year guidance. Lastly, disciplined portfolio management remains a priority. We completed the divestment of Safran Passenger Innovation and of our 50% stake in Easy Air, our past joint venture with Embraer. Regarding Aubert et Duval, Airbus and Safran recently completed the acquisition of TQO Capital's ...