Safran Sa Ord (SAFRF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning everyone and thank you for joining us. Today we will review our 2025 results, share our 2026 outlook and briefly walk you through some of our updated 2028 assumptions. 2025 was an outstanding year for SAFON. Airlines carried more than 5 billion passengers and again that backdrop of strong demand and still low retirement levels, our aftermarket activities clearly outperformed expectations across both spare parts and services. We have also reached an all-time high in lead production, delivering more than 1,800 engines, up 28% versus 2024. Defense and space had a particularly strong year as well. In military propulsion, we accelerated M88 production, and we have secured a new Rafale export contract with the Indian Navy. In defense electronics, order intake reached a record level with a 1.6 book-to-bill ratio, reflecting very strong market demand. We have also signed several strategic partnerships, expanded capacity across multiple product lines, and we have achieved the first major export success for Safran AI, which is a new name we have given to the company we had acquired 18 months ago. In aircraft interiors, recent seats, commercial winds, and improved pricing conditions confirmed that the strategic shift presented at our last capital market day is being executed. Overall, we outperformed our initial expectation in 2025, delivering record financial results across all metrics. This despite tariffs. Margin improved by 150 basis points. and cash generation approach €4 billion. Reflecting this performance, we are proposing a 3.35 dividend per share, up 16% year-on-year. Finally, on portfolio management, the integration of Colin's actuation activities is progressing well. At the same time, we are moving ahead With the divestment of two non-core activities, t...