Safran (SAF) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 revenue grew 16.7% year-over-year to EUR 7.26–7.3 billion, with strong momentum in both civil aerospace and defense, driven by robust aftermarket and services growth.

• Civil engine spare parts sales rose 25.1%, and services increased 17.6%, exceeding expectations.

• Strategic progress on Collins Aerospace acquisition, with European Commission approval and further regulatory steps pending.

• Management reaffirmed full-year 2025 guidance, citing strong momentum and active mitigation of tariff risks.

Financial highlights

• Q1 2025 adjusted revenue reached EUR 7.26–7.257 billion, up 16.7% year-over-year, with organic growth of 13.9%.

• Services revenue grew 19.5% organically, more than double the OE rate.

• Propulsion revenue was EUR 3.7 billion, up 16.4%–19.0% organically year-over-year.

• Aircraft Interiors revenue reached EUR 788 million, up 13.8%–16.6%, surpassing Q1 2019 levels by 8%.

• Currency effects contributed 2.3% to growth, adding nearly EUR 140 million to sales.

Outlook and guidance

• Full-year 2025 revenue growth expected around 10%, recurring operating income guidance at EUR 4.8–4.9 billion, and free cash flow at EUR 3.0–3.2 billion.

• LEAP engine deliveries projected to rise 15–20% over 2024, with recovery expected after a slow Q1.

• Spare part revenue growth now expected in the low to mid-teens, revised up from previous high single-digit forecast.

• Guidance excludes potential tariff impacts and the Collins Aerospace acquisition.

• Confident to reach the high end of guidance for free cash flow and EBIT.