Safran (SAF) H1 2025 earnings summary

Executive summary

• Achieved record H1 2025 performance with 13.2% revenue growth, 17% operating margin, and robust free cash flow, driven by strong aftermarket and sector demand in both civil and defense aerospace.

• Major strategic milestone reached with the acquisition of Collins Aerospace's actuation and flight control business, to be consolidated from August 1, 2025.

• Paris Air Show and new contracts underscored strong market dynamics and robust demand.

• Announced new carbon brake facility in France, operational by 2030, to meet rising demand.

• Supply chain improvements and removal of aerospace tariffs are supporting industry growth.

Financial highlights

• Adjusted revenue rose 13.2% year-over-year to €14,769 million; consolidated revenue was €14,865 million.

• Recurring operating income increased 27% to €2,510 million, with a 17% margin, up from 15.1% in H1 2024.

• Net income attributable to owners was €1,587 million, with basic EPS of €3.80.

• Free cash flow reached €1,834 million, up 25% year-over-year, supporting a net cash position of €1,869 million at June 30, 2025.

• Dividend of €2.90 per share paid in June 2025, totaling €1,216 million.

Outlook and guidance

• FY 2025 outlook raised: revenue expected to grow in the low teens, recurring operating income €5.0–5.1 billion, and free cash flow €3.4–3.6 billion.

• LEAP engine deliveries forecast up 15–20%; spare parts and services revenue in USD projected to grow mid to high teens.

• Guidance excludes Collins acquisition and potential tariff impacts; main risk is supply chain production capability.

• Collins acquisition expected to add €600–700 million to 2025 revenue (last five months) and be EPS accretive in year one.