French aerospace group Safran has today forecast increased revenue and earnings for 2026, after boosting profitability last year on the back of strong aftermarket demand for its civil jet engines.
Safran, which co-produces engines for Airbus and Boeing jets with GE Aerospace under their CFM venture, projected €6.1 billion to €6.2 billion in recurring operating profit for this calendar year.
That was on an estimated percentage rise in revenue in the "low to mid teens" over the period. A French version of its earnings release specified this as an increase of 12% to 15%.
For 2025, Safran posted a 26% rise in recurring operating income on an adjusted basis to €5.2 billion, with a margin gain of 1.5 percentage points to 16.6%.
Adjusted revenue rose 15% to €31.33 billion as the company also generated €3.92 billion in free cashflow.
Analysts on average expected total recurring operating income of €5.22 billion on revenue of €31.49 billion and free cashflow of €3.66 billion, according to a company-compiled consensus.
Services revenue for civil engines increased by 30% in US dollar terms, Safran said.
Demand for air travel and continued interest in flying older jets amid delays in new production buoyed aftermarket sales.
The company noted positive momentum in defence due in part to new orders for the Rafale fighter, for which it makes engines.
Safran upgraded its financial targets for 2028, raising a forecast for recurring operating income to €7 billion to €7.5 billion, from the €6 billion to €6.5 billion it projected at an investor day in 2024.
Earlier this week Ryanair and CFM International unveiled a deal to support the airline's plans to open two engine maintenance shops with a flow of spare parts, securing scarce supplies for the next 15 years.
