Safran Sa EURONEXT:SAF

Safran : reports first quarter 2026 revenue - Outstanding performance in civil engine activities

Published

Source: MarketScreener

Paris, April 25, 2025

  • Q1 2026 adjusted revenue up +18.8% reaching €8,624 million
  • FY 2026 outlook confirmed


Q1 2026 consolidated data

Foreword

  • All figures in this press release represent adjusted data, except where noted. Please refer to the definitions and reconciliation between Q1 2026 consolidated revenue and adjusted revenue. Please refer to the definitions contained in the footnotes and in the Notes on page 5 of this press release.
  • Organic changes exclude changes in scope and currency impacts for the period.

CEO Olivier Andriès said: "The beginning of 2026 saw an extremely strong pace in civil engine activities, with LEAP engine deliveries surging by more than 60% and sales of spare parts and services rising by 29% and 43% respectively. Order intake for defense activities continued its good momentum, driven by strong demand, notably throughout Europe. Despite current uncertainties related to the conflict in the Middle East, first quarter performance in both the civil aerospace and defense sectors reinforces our confidence in our ability to reach the high end of our full-year guidance."

Q1 2026 revenue

Q1 2026 revenue stood at €8,624 million, up by 18.8% compared to Q1 2025 (+23.0% organic). Changes in scope had a positive €311 million1 effect. The currency impact was a negative €614 million, with an average EUR/USD spot rate of 1.17 in Q1 2026 (1.05 in Q1 2025). The EUR/USD hedge rate in Q1 2026 stood at 1.12 (unchanged from Q1 2025).

As for organic revenue per division:

  • Propulsion was up by 33.1% with aftermarket revenue up by 32.1% and OE sales up by 35.0%.
    Spare parts revenue for civil engines (in USD) grew by 29.3%, largely driven by a more favorable workscope mix, especially against a low comparison basis from the previous year on the CFM56 engine. The LEAP engine also contributed, in line with the increasing number of shop visits performed by third-party MROs and the expanding workscope. Services revenue for civil engines (in USD) increased by 43.1%, driven by LEAP rate per flight hour (RPFH) contracts and supported by a favorable year-on-year comparison, as profit recognition on the LEAP-1A only began in the second quarter of 2025.
    Building on the strong industrial performance of the second half of 2025, LEAP engine deliveries reached 520 units, a 63% growth compared to 319 in Q1 2025, and marked the third consecutive quarter with deliveries exceeding 500 units.
    Military aircraft engine revenue increased year-over-year, mainly driven by higher M88 deliveries combined with a favorable export mix.
    Helicopter engine revenue saw modest growth, primarily driven by spare parts sales. Additionally, revenue from missile propulsion systems benefited from higher delivery volumes.
  • Equipment & Defense was up by 13.5% (11.9% growth before Safran Ventilation Systems activities transfer). Change in scope of €379M mainly includes the flight control and actuation activities acquired from Collins Aerospace in July 2025.
    OE sales grew by 15.3%, recording growth throughout all businesses, particularly in primary electrical systems and wiring (737MAX), nacelles (A320neo), defense (optronics, navigation & timing systems) and landing gear (787, A330neo).
    Aftermarket activities increased by 10.7%, with growth across the board, especially in primary electrical systems and wiring (A380) as well as in nacelles (A320neo, A380, A320ceo).
  • Aircraft Interiors saw a 9.2% growth (14.8% growth before Safran Ventilation Systems activities transfer). Change in scope of €(95)M includes the disposal of Safran Passenger Innovations.
    OE sales grew by 10.5%, primarily supported by increasing Cabin deliveries (galleys, inserts, etc., mostly on A350, A320neo and 737MAX), and positive effects of price on Business class seats.
    Aftermarket activities increased by 7.2%, mostly driven by demand for Cabin, particularly from customers in the Americas and the Middle East. Seats also contributed positively thanks to favorable pricing conditions.

1 Acquisition of Component Repair Technologies Inc (CRT) in January 2025 and Collins Aerospace's flight control and actuation activities in July 2025. Divestment of Safran Passenger Innovations in January 2026. Consolidation of Thalès Aeronautical Electrical Systems activities in Singapore from January 2025.

Currency hedging

The hedging portfolio amounts to $58.6 billion at the end of March 2026 ($56.4 billion at the end of December 2025):

  • 2026 is fully hedged: targeted hedge rate of EUR/USD 1.12, for an estimated net annual exposure of $16 billion
  • 2027 and 2028 are fully hedged: targeted hedge rate of EUR/USD 1.12, for an estimated net annual exposure capped by construction at $17 billion.
  • 2029 is partially hedged: $13.7 billion out of an estimated net annual exposure capped by construction at $17 billion (targeted EUR/USD hedge rate: 1.12 - 1.14).

Share repurchase program

Between January and March 2026, Safran repurchased c.1.6 million shares for cancellation, representing an aggregate amount of €500 million.

Debt management

In March 2026, Safran redeemed at scheduled maturity the €700 million bonds issued in March 2021. This redemption was financed from available cash and had no impact on the net debt position.

Portfolio management

  • On January 19, 2026, Safran announced that it has entered into a definitive agreement with Embraer for the sale of Safran Cabin's shares in EZAir, their 50/50 joint venture that manufactures Embraer's interiors in Chihuahua, Mexico, along with associated activities.
  • On January 30, 2026, Safran completed the sale of Safran Passenger Innovations, its in-flight entertainment and connectivity solutions division, to Kingswood Capital Management.
  • On February 13, 2026, Safran announced the acquisition of Syntony, a start-up that is a leader in complementary technologies to its resilient navigation activities (2025 revenue: below €10M).

Full-year 2026 outlook

Safran confirms its full-year 2026 outlook:

  • Revenue growth: up low to mid-teens;
  • Recurring operating income: €6.1 to €6.2 billion;
  • Free Cash Flow: €4.4 to €4.6 billion, of which an estimated ~€(470) million negative impact from the French corporate surtax and subject to payment schedule of some advance payments and the pace of payments by State customers.

This outlook is based notably, but not exclusively, on the following assumptions:

  • LEAP engine deliveries: up ~15%;
  • "Spare parts" revenue (in USD): up mid-teens;
  • "Services" revenue (in USD): up ~20%;
  • EUR/USD spot rate of 1.15;
  • EUR/USD hedge rate of 1.12.

Watch items: supply chain production capabilities, potential impact of the Middle East conflict.


Calendar

  • Annual General Meeting May 21, 2026
  • H1 2026 results July 28, 2026
  • Q3 2026 revenue October 23, 2026
  • FY 2026 results February 9, 2027

Safran will host today a webcast for analysts and investors at 8.30 am CET.

  1. If you only want to follow the webcast and listen the conference call, please register using the following link: https://edge.media-server.com/mmc/p/hihcjk3h
    Use this same link for the replay which will be available 2 hours after the event concludes and remains accessible for 90 days.
  2. If you want to participate in the Q&A session at the end of the conference, please pre-register using the link below in order to receive by email the connection details (dial-in numbers and personal passcode):
    https://register-conf.media-server.com/register/BI8d0c9311c1ec4f2d85dd35213c167454


Registration links are also available on Safran's website under the Finance home page as well as in the "Publications and Results" and "Calendar" sub-sections.

Press release and presentation are available on Safran's website at www.safran-group.com (Finance section).

Key figures

1. Segment breakdown