PARIS, Feb 13 (Reuters) – French aerospace group Safran forecast increased revenue and earnings for 2026 on Friday, after boosting profitability last year on the back of strong aftermarket demand for its civil jet engines, pushing up its shares. Shares in the maker of civil and military jet engines and equipment like landing gear and […]
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Safran targets higher 2026 profit as jet engine services prosper
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PARIS, Feb 13 (Reuters) – French aerospace group Safran forecast increased revenue and earnings for 2026 on Friday, after boosting profitability last year on the back of strong aftermarket demand for its civil jet engines, pushing up its shares.
Shares in the maker of civil and military jet engines and equipment like landing gear and aircraft cabins rose over 7% and were on track for their best day since March 2022.
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 euros ($7.2 billion to $7.4 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 euros, with a margin gain of 1.5 percentage points to 16.6%.
Adjusted revenue rose 15% to 31.33 billion euros as the company also generated 3.92 billion euros in free cashflow.
Analysts on average expected total recurring operating income of 5.22 billion euros on revenue of 31.49 billion euros and free cashflow of 3.66 billion euros, according to a company-compiled consensus.
Services revenue for civil engines increased by 30% in U.S. 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 7.0 billion to 7.5 billion euros, from the 6.0 billion to 6.5 billion euros it projected at an investor day in 2024.
($1 = 0.8430 euros)
(Reporting by Tim Hepher, Jakob Van Calster, Editing by Kevin Buckland and Tomasz Janowski)