Safran (SAF) H2 2024 earnings summary

Executive summary

• 2024 marked a record year with revenue of €27,317 million, profit, and free cash flow at all-time highs, driven by strong aftermarket activity and operational excellence.

• Civil aftermarket revenue grew 24.9% in USD, with over 10,000 aircraft powered by CFM56 engines and operating margin up 150 bps.

• Aircraft Interiors division returned to profitability, with business class seat deliveries up 152% year-over-year.

• LEAP engine deliveries declined 10% in 2024 due to supply chain constraints, but higher volumes in Equipment & Defense and Aircraft Interiors offset this.

• Major acquisitions and divestments included CRT (engine MRO), sale of Roxel, and agreement to sell U.S. electromechanical actuation activities.

Financial highlights

• Revenue grew 17.8% year-over-year to €27,317 million; recurring operating profit rose 30.1% to €4,119 million.

• Free cash flow reached €3,189 million, up from €2,945 million in 2023.

• Net income attributable to the parent was €3,068 million, or €7.37 per share, up 51% year-over-year.

• Proposed dividend of €2.90 per share for 2024, up 32% from last year, representing a 40% payout ratio.

• EBITDA increased to €5,417 million from €4,146 million.

Outlook and guidance

• 2025 revenue expected to grow around 10%, with recurring operating income between €4.8–4.9 billion and free cash flow €3.0–3.2 billion.

• LEAP engine deliveries projected to rise 15–20% in 2025; civil aftermarket and spare parts to grow mid-to-high teens.

• Propulsion margin targeted to improve by 100–200 bps in 2025, maintaining above 20%.

• Aircraft Interiors EBIT margin targeted to increase, aiming for double-digit by 2028.

• Guidance excludes Collins acquisition and any new tariffs.