Business
Safran : reports its first-half 2026 results
Safran : reports its first-half 2026
About this update from Safran Sa
Paris, July 28, 2026 H1 2026 adjusted data Revenue: €17,571 million (+19.0%) Recurring operating income: €3,237 million (+29.0%), 18.4% of sales Free cash flow: €2,616 million H1 2026 consolidated data Revenue: €17,245 million Recurring operating income: €2,636 million Free cash flow: €2,616 million The Board of Directors of Safran (Euronext Paris: SAF), under the Chairmanship of Ross McInnes, at their meeting in Paris on July 27, 2026, adopted and authorized the publication of Safran's financial statements and adjusted income statement for the six-month period ended June 30, 2026. Foreword All figures in this press release represent adjusted data, except where noted. Please refer to the definitions and reconciliation between first-half 2026 consolidated income statement and adjusted income statement. Please refer to the definitions contained in the footnotes and in the Notes on page 10 of this press statement. Organic variations exclude changes in scope and currency impacts for the period. CEO Olivier Andriès said: " Buoyed by strong demand for civil engine spare parts, Safran delivered an outstanding first half in 2026, outperforming expectations and achieving record profitability with an 18.4% margin, up by 140 basis points, and very strong cash generation of €2.6 billion. Our teams have sustained strong momentum, delivering over 500 LEAP engines for the fourth consecutive quarter. Furthermore, we continue to expand our production capabilities to support rising customer demand across both civil aerospace and defense activities. Building on our excellent first-half results, we are raising our full-year outlook across the board. " Half-year 2026 results Revenue H1 2026 revenue stood at €17,571 million, up by 19.0% compared to H1 2025 ( +20.2% on an organic basis). Change in scope was + €560 million 1 . Currency impact was €(742) million, with an average €/$ spot rate of 1.17 in H1 2026 (1.09 in H1 2025). €/$ hedge rate in H1 2026 stood at 1.12 (unchanged from H1 2025). As for organic revenue per division: Propulsion was up by 27.7%, with aftermarket and OE activities increasing at the same pace. Civil engine aftermarket activities outperformed expectations, with spare parts sales for civil engines rising by 27.9% (in USD) over the period. This performance was largely driven by CFM56, which benefited from a favorable workscope mix and comparison base. The LEAP engine also contributed, reflecting a higher volume of shop visits performed by third-party MROs and an increasing workscope. Services for civil engines (in $) were up by 40.4%, mostly supported by LEAP rate per flight hour (RPFH) contracts. For the fourth consecutive quarter, LEAP engine deliveries exceeded 500 units, totaling 510 deliveries in Q2 (up 24% year over year), reflecting a strong operational execution. Over the first half of the year, LEAP deliveries reached 1,030 units, representing a 41% increase compared to the first half of 2025. Helicopter turbine performance was driven by a higher level of services. On the defense side, military engine revenue increased year over year driven by M88 engine deliveries which reached 33 units, more than tripling last year's figure, as well as a favorable customer mix, and a robust level of aftermarket. Missile propulsion revenue benefitted from increased deliveries. Equipment & Defense saw solid 14.0% growth (12.4% growth before Safran Ventilation Systems activities transfer), with growth across the board. Change in scope of €745M mainly includes the flight control and actuation activities acquired from Collins Aerospace in July 2025. OE sales grew by 15,0%, led by nacelles (A320neo, business and regional jets), electrical systems (737 MAX, A320neo, A350) and defense activities (inertial navigation systems, optronics, AASM Hammer™). Aftermarket services increased by 12.4%, particularly in electrical systems (notably for A380) and nacelles (A320neo, A330). Aircraft Interiors was up 6.6% (12.2% growth before Safran Ventilation Systems activities transfer). Change in scope of €(185)M includes the disposal of Safran Passenger Innovations. Aftermarket activities increased by 10.0%, mostly driven by demand for Cabin (mainly spare parts), particularly from customers in the Americas, the Middle East and Asia. Seats contributed as well with positive effects on both volume and price. OE sales increased by 4.5%, mainly driven by Cabin deliveries (lavatories, galleys, inserts, etc.). Seats also benefited from price positive-effects. 1 Acquisition of 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. Research & Development Total R&D, including R&D sold to customers, reached €1,105 million, compared with €967 million in H1 2025. Self-funded R&D expenses before tax credits were €701 million in H1 2026 (vs €649 million in H1 2025) including: €364 million in self-funded Research & Technology (R&T) expenses (€307 million in H1 2025), mainly geared towards decarbonization notably through the RISE (Revolutionary Innovation for Sustainable Engines) technology development program; €337 million in development expenses (€342 million in H1 2025). The impact of expensed R&D on recurring operating income was €577 million (€542 million in H1 2025), representing 3.3% of revenue (3.7% of revenue in H1 2025). Recurring operating income In H1 2026, recurring operating income reached €3,237 million , representing a substantial 29.0% year-over-year increase (+27.5% organic increase) driven by revenue growth and a robust aftermarket activity. It includes a €63 million increase in scope and a negative currency impact of €26 million. Operating margin stood at 18.4% of revenue, up 1.4pt (17.0% in H1 2025). Per division: Propulsion: recurring operating income reached €2,253 million, up by 28% (+29% organic). Operating margin stood at 24.5% of revenue, up by 1.2pt. It was mostly supported by strong civil aftermarket activity, driven by higher CFM56 spare parts sales and, to a lesser extent, by increased military engine deliveries. This was partially mitigated by higher LEAP deliveries with a decreasing spare engine ratio, as well as higher LEAP services under RPFH. Helicopter turbines and missile propulsion activities also contributed to the overall performance. Equipment & Defense: recurring operating income stood at €907 million, up by 29% (+21% organic). Operating margin was at 13.1%, up by 60 bps (110 bps excluding Collins Aerospace's flight control and actuation activities), benefiting mainly from both OE and aftermarket growth, notably on nacelles and electrical systems. Higher deliveries of defense electronics also contributed to profitability. Aircraft Interiors: positive recurring operating income of €54 million (compared to €27 million published in H1 2025). Operating margin stood at 3.7%, up by 200bps (230bps without Safran Passenger Innovations), driven by a good level of aftermarket and by a positive contribution of OE pricing for both Cabin and Seats activities. Net income In H1 2026, one-off items were €(177) million, resulting from costs related to the conclusion of commercial discussions concerning prior transactions, impairment expenses for several programs and other costs such as M&A and transaction expenses. Net income (Group share) was up by 21% at €1,924 million in H1 2026 (basic and diluted EPS of €4.63), compared with €1,587 million in H1 2025 (basic and diluted EPS of €3.80). This includes: Financial expense of €(123) million, of which €57 million of net financial interests (returns on cash investments exceed cost of debt) and €(188) million of FX loss (including the FX impact on provisions); Tax expense of €(961) million (32.7% apparent tax rate, including a €322 million impact of the French corporate surtax). The reconciliation of the H1 2026 consolidated income statement with the adjusted income statement is provided and commented in the Notes on page 11. Free cash flow Free cash flow of €2,616 million was mostly driven by the increase in cash flow from operations and higher capital expenditure of €(980) million (€(788) million in H1 2025), notably directed towards additional MRO and OE production capacities in both civil and defense. The favorable €122 million change in working capital mainly reflects an increase in inventories more than offset by advance customer payments and deferred income. As of June 30, we also made further progress by reducing the inventory DSO (Days Sales Outstanding) by 5 days as we increased deliveries. Net debt and financing As of June 30, 2026, Safran's balance sheet exhibits a €1,667 million net cash position (vs. €1,738 million at December 31, 2025), as a result of a strong free cash flow generation, mostly offset by a dividend payment (of which €1,390 million to shareholders of the parent company) and share repurchases for cancellation for a total of €804 million. Cash and cash equivalents stood at €6,507 million (vs €6,789 million at December 31, 2025). 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. Consolidated data (IFRS) The consolidated revenue for H1 2026 was €17,245 million compared with €14,865 million in H1 2025, up 16.0%. The consolidated recurring operating income for H1 2026 was €2,636 million (15.3% of revenue), up 6.8% from €2,468 million in H1 2025 (16.6% of revenue). The increase in revenue and recurring operating income was driven by growth in OE sales across the board, as well as aftermarket activities, particularly for civil engines as explained in the above analysis. The consolidated financial result for H1 2026 was €249 million, compared with €4,740 million in H1 2025. It includes changes in the fair value of instruments hedging future cash flows, amounting to €22 million before tax in H1 2026 compared with €4,808 million before tax in H1 2025. Consolidated net income (Group share) for H1 2026 was €1,750 million, compared with €5,045 million in H1 2025. Net income for H1 2026 includes the tax surcharge in France of €322 million. Consolidated basic EPS was €4.21 (diluted EPS of €4.21), compared with €12.07 in H1 2025 (diluted EPS of €12.07). Share repurchase program During the first half of 2026, Safran repurchased approximately 2.6 million shares for cancellation, for a total of €804 million. As at July 27, the total number of shares repurchased in 2026 for cancellation amounts to roughly 2.8 million shares (0.7% of equity) - a total of €875 million - scheduled for cancellation before the end of the year. Currency hedges The hedging portfolio amounts to $59.5 billion in June 2026 ($58.6 billion in March 2026). 2026 is fully hedged: targeted hedge rate of EUR/USD 1.12, for a net annual exposure of $16 billion (working hypothesis). 2027 and 2028 are fully hedged: targeted hedge rate of EUR/USD 1.12, for a net annual exposure capped at $17 billion (working hypothesis). 2029 is fully hedged: targeted hedge rate of EUR/USD [1.12 - 1.14], for a net annual exposure capped at $17 billion (working hypothesis). Hedging for the year 2030 has started and amounts to $1.6 billion as of the end of June 2026. Credit rating On July 2, 2026, Standard & Poor's revised upwards its outlook on Safran to Positive (from Stable) and reaffirmed the 'A-' long-term issuer credit rating on the company and the 'A-' issue rating on the senior unsecured debt. Portfolio management 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 July 1, 2026, Safran completed the divestment of Safran Cabin's 50% stake in the joint venture EZ Air to its partner Embraer, along with certain assets related to its operations in Brazil. On July 13, 2026, Safran and Airbus equally acquired the stake held by Tikehau Capital in Aubert & Duval. Full-year 2026 outlook Safran raises its full-year 2026 outlook across the board: Revenue growth: up mid-teens (previously low to mid-teens ); Recurring operating income: €6.4 to €6.5 billion (previously €6.1 to €6.2 billion ); Free Cash Flow: €4.7 to €4.9 billion (previously €4.4 to €4.6 billion ), including an estimated ~€500 million negative impact (previously ~€470 million ) 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 high-teens (previously ~15% ); "Spare parts" revenue (in USD): up mid-twenties (previously mid-teens ); "Services" revenue (in USD): up mid-twenties (previously ~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 Q3 2026 revenue : October 23, 2026 FY 2026 results : February 9, 2027 Q1 2027 revenue : April 23, 2027 H1 2027 results : July 28, 2027 Safran will host today a webcast for analysts and investors at 8.30am CET. 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/doc5zdiq Use this same link for the replay which will be available 2 hours after the event concludes and remains accessible for 90 days. 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/BIe7010d20cccf4979b62c0879113a4837 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. The press release, consolidated financial statements and results presentation are available on Safran's website at www.safran-group.com (Finance section). Key figures 1. Adjusted income statement, balance sheet and cash flow