Safran Reports Strong 2025 Growth and Raises 2028 Financial Targets
Safran posts 14.7% revenue growth in 2025, driven by LEAP engine deliveries and aftermarket demand, raising 2028 financial goals.
Safran Reports Strong 2025 Growth, Raises Medium-Term Financial Targets
Safran Group has reported what it characterizes as “excellent” financial results for the full fiscal year 2025, driven by a surge in civil engine deliveries and robust aftermarket demand. In an announcement released on February 13, 2026, the French aerospace giant revealed double-digit revenue growth and record cash generation, prompting the company to upgrade its financial ambitions for the 2024–2028 period.
The group’s performance reflects a stabilizing aerospace supply chain and sustained demand for air travel, which has fueled both original equipment manufacturing and service contracts. According to the company’s official release, adjusted revenue for 2025 reached €31.33 billion, a 14.7% increase compared to the previous year. Consequently, Safran has revised its outlook for 2028, projecting higher operating income and cash flow than previously estimated.
Fiscal Year 2025 Financial Highlights
Safran’s financial disclosure highlights significant improvements across key metrics. The company prioritizes “adjusted” data for its performance analysis to exclude the volatility of currency hedging valuations. Under these adjusted metrics, recurring operating income rose sharply by 26.2% to €5.20 billion, resulting in an operating margin of 16.6%, an expansion of 150 basis points year-over-year.
Key Performance Metrics
According to the data released by the group, the primary financial results for FY 2025 include:
- Adjusted Revenue: €31.33 billion (+14.7% reported; +14.8% organic).
- Recurring Operating Income: €5.20 billion.
- Free Cash Flow: €3.92 billion (+23%), exceeding initial company guidance.
- Adjusted Net Income: €3.18 billion (+3.5%), representing an adjusted EPS of €7.60.
The company also reported a consolidated net income of €7.18 billion, a figure that includes significant non-cash gains derived from the mark-to-market valuation of hedging instruments. Based on these results, Safran’s Board has proposed a dividend of €3.35 per share, a 16% increase, subject to shareholder approval at the Annual General Meeting in May 2026.
Operational Drivers: Propulsion and Defense
The primary engine of growth for Safran in 2025 was its Propulsion division. The company noted a significant ramp-up in production for the LEAP engine, which powers the Boeing 737 MAX and the Airbus A320neo family.
LEAP Engine Deliveries
In its operational update, Safran confirmed that LEAP engine deliveries increased by 28% year-over-year, totaling 1,802 units in 2025. This increase aligns with broader industry efforts to clear backlogs and meet aircraft delivery schedules.
Additionally, the civil aftermarket segment, comprising spare parts and service contracts, saw substantial growth. The company attributes this to high airline traffic levels and an aging global fleet that requires more intensive maintenance.
Defense Sector Momentum
Beyond civil aviation, the Equipment & Defense division reported robust growth of 11.4%. This performance was supported by strong export contracts, including systems for the Rafale fighter jet, and a general increase in global defense spending.
Outlook: 2026 Guidance and Raised 2028 Ambitions
Looking ahead, Safran has issued guidance for the 2026 fiscal year and updated its medium-term targets. For 2026, the company expects revenue growth in the “low to mid-teens” and recurring operating income between €6.1 billion and €6.2 billion. Free cash flow is projected to land between €4.4 billion and €4.6 billion, with LEAP deliveries expected to rise by another 15%.
Upgraded 2028 Targets
Citing strong visibility in its aftermarket business and defense order books, Safran has raised its targets for 2028. The updated ambitions include:
- Revenue Growth: A Compound Annual Growth Rate (CAGR) of approximately 10% for 2024–2028.
- Recurring Operating Income: A target range of €7.0 billion to €7.5 billion (previously €6.0–€6.5 billion).
- Cumulative Free Cash Flow: Approximately €21 billion for the 2024–2028 period (up from €15–€17 billion).
- Propulsion Margin: Targeted at 22%–24% annually starting from 2025.
AirPro News Analysis
The upward revision of the 2028 free cash flow target, from a maximum of €17 billion to roughly €21 billion, is a significant indicator of Safran’s confidence in the long-term profitability of the LEAP program. For years, the industry has watched the “cash curve” of the LEAP engine, waiting for the installed base to mature enough to generate high-margin aftermarket revenue.
With propulsion margins targeted at 22%–24% and LEAP deliveries hitting 1,802 units in 2025, it appears Safran is successfully transitioning from the investment-heavy ramp-up phase to a period of sustained cash generation. However, the company’s mention of raw material challenges (specifically forging and casting) suggests that while the supply-chain is improving, upstream bottlenecks remain a critical watch item for achieving the 2026 delivery targets.
Frequently Asked Questions
What drove Safran’s growth in 2025?
Growth was primarily driven by a 28% increase in LEAP engine deliveries and strong demand in civil aftermarket services (maintenance and spare parts) due to high airline traffic.
What is the proposed dividend for shareholders?
Safran has proposed a dividend of €3.35 per share, representing a 16% increase over the previous year.
How has the 2028 outlook changed?
Safran significantly raised its 2028 targets, now expecting cumulative free cash flow of ~€21 billion (up from ~€15–€17 billion) and recurring operating income of €7.0–€7.5 billion.
Sources
Photo Credit: Safran