Safran (SAF) Q4 2025 earnings summary

Executive summary

• Achieved record financial performance in 2025, surpassing initial expectations across all metrics, with strong demand in civil and defense markets and a 150bps margin improvement.

• LEAP engine deliveries reached an all-time high of 1,802 units, up 28% year-over-year, and aftermarket activities outperformed, driven by over 5 billion airline passengers and low aircraft retirements.

• Defense and space saw robust growth, with record order intake, new export contracts, and major agreements for M88 engines and Hammer-guided bombs.

• Portfolio management advanced with the integration of Collins Actuation and divestment of non-core assets, including Safran Passenger Innovations and EZ Air.

• Free cash flow reached €3.9 billion, supporting increased investments and shareholder returns, including a proposed €3.35 dividend per share and ongoing share buyback program.

Financial highlights

• Revenue reached €31,329 million, up 14.7% year-over-year, with recurring operating income up 26% to €5,197 million and operating margin at 16.6%.

• Net income attributable to the parent was €3,174 million, up 3.5% year-over-year, with EPS at €7.60.

• Free cash flow rose 23% to €3,921 million, with a 75% EBIT-to-cash conversion ratio.

• Proposed dividend of €3.35 per share, up 16% year-over-year, representing a 40% payout ratio.

• Net cash position at €1,738 million at year-end 2025; liquidity includes €6,789 million cash and €2,000 million undrawn credit.

Outlook and guidance

• 2026 revenue expected to grow low-to-mid-teens; recurring operating income guided at €6.1–6.2 billion; free cash flow €4.4–4.6 billion.

• LEAP deliveries to increase by 15% in 2026, targeting 2,600 engines by 2028; services revenue in $ up around 20%.

• 2028 ambitions raised: revenue CAGR ~10%, recurring operating income €7.0–7.5 billion, cumulative free cash flow ~€21 billion (2024–2028).

• Propulsion margin target for 2028 increased to 22–24%; Equipment and Defense to mid-teens; Aircraft Interiors to high single digits.

• FX assumptions: EUR/USD hedge rate of 1.12 through 2028.