Safran (SAF) Q2 2026 earnings summary

Executive summary

• Record first-half performance driven by exceptional civil engine aftermarket demand, robust LEAP and M88 engine deliveries, and strong defense segment growth, with minimal impact from Middle East conflict.

• Portfolio management included divestments (Safran Passenger Innovations, EZAir JV) and acquisitions (Aubert & Duval, Collins actuation and flight control activities).

• Commercial momentum supported by major engine orders (IndiGo, BOC Aviation), expanded MRO capacity, and record LEAP deliveries.

• Defense segment saw strong demand, new partnerships, and major contract wins, with over 80% of electronics backlog international.

• Full-year 2026 guidance raised across all key metrics, reflecting confidence in continued momentum.

Financial highlights

• Revenue reached €17,571 million, up 20.2% organically and 19% reported year-over-year.

• Recurring operating income rose 29% to €3,237 million, with a record 18.4% margin.

• Free cash flow increased 43% to €2,616 million, with EBITDA cash conversion over 80%.

• Net income attributable to parent was €1,924 million, up 21% year-over-year; EPS €4.63.

• One-off items totaled €-177 million, mainly from program impairments and M&A costs.

Outlook and guidance

• Full-year 2026 revenue growth now expected in the mid-teens, above €36 billion.

• Recurring operating income guidance raised to €4.7–4.9 billion; free cash flow guidance to €6.4–6.5 billion.

• Spare parts and services revenues expected up in the mid-20s percent (USD); LEAP deliveries up in the high teens percent.

• Propulsion margin expected at upper end or slightly above 24% for the year.

• Assumptions include €/$ spot rate at 1.15, hedge rate at 1.12, and inclusion of Collins actuation business.