By Leeham News Team
Feb. 14, 2025, © Leeham News: Safran has announced “record-breaking” financial results for 2024, with revenues, profits, and free cash flow all reaching new highs, helped by strong aftermarket activity and the return to profitability of its aircraft interiors division.
The strong performance has prompted an upward revision of its 2025 outlook, with revenue and income forecast to be higher than the figures given in December.
Reflecting on the 12-month period in a call with analysts on Friday morning, CEO Olivier Andriès described it as a “landmark year” for the company, despite “persistent supply chain difficulties as well as residual inflationary pressures”.
For the 2024 financial year, Safran reported adjusted revenue of €27.3 billion, a 17.8% increase, while recurring operating income surged by 30.1% to €4.1 billion, representing 15.1% of sales.
Free cash flow reached €3.19 billion, with shareholders set to benefit from a proposed dividend of €2.90 per share, pending approval.
Consolidated figures for the year were similarly robust, with total revenue at €27.7 billion and operating income at €4.19 billion.
2025
Looking ahead to 2025, Safran has raised its profit and cash flow forecasts. It now expects revenue to grow by around 10%, with recurring operating income estimated at between €4.8 billion and €4.9 billion, up from the previous forecast of €4.7 billion to €4.8 billion.
Free cash flow is now projected at between €3.0 billion and €3.2 billion, an improvement on the earlier guidance of €2.8 billion to €3.0 billion.
The upgraded outlook reflects confidence in Safran’s continued strong performance as it capitalises on market opportunities.
“The operating margin grew by 150 basis points to 15.1% of sales, driven especially by strong aftermarket activity across the board, a relentless focus on operational excellence and the return to profitability of aircraft interiors,” said Andriès.
“In 2025, meeting our airframer and airline customers’ requirements and improving industrial performance in both original equipment and MRO remain our priorities to continue our profitable growth.
“In terms of capital deployment, we expect to close the Collins’ actuation and flight control activity by mid-year.”
FY 2024 financial performance. Credit: Safran
LEAP engine deliveries down
Breaking it down by division, Safran’s Propulsion unit saw revenue climb by 15.0%, driven by the civil aftermarket.
While the number of LEAP engines delivered fell by 10%, to 1,407 compared to 1,570 in 2023, Safran said the lower volume was “more than offset by customer mix and price”.
The company was also boosted by certification from the FAA and EASA of its High Pressure Turbine hardware durability kit for the LEAP-1A engines that power A320neo.
Safran’s Equipment & Defense division revenue was up 17.7%, driven by increased air traffic in the widebody market.
A growing eagerness by airline customers to refit cabins helped the Aircraft Interiors unit record 25.2% growth, (though this is 5% below 2019 levels).
The positive set of results means Safran is now expecting revenue growth of 10% for the full-year 2025.
This is based on the assumption that LEAP engine deliveries will grow by 15-20% compared to 2024. (Bernstein analysts noted in a January briefing note that “a lot of work remains” to achieve this growth).
The number of products delivered on major aerospace programs. Credit: Safran
Risks
There are tangible risks, however. These include restricted supply chain production capability, and the potential impact of new tariffs.
“Supply chain issues are persisting but improving,” noted Andriès. “The number of critical suppliers and critical sites are decreasing month after month, we still have some pain points globally, but I can say that the situation is indeed progressively improving. But it is still there.
“The demand is still stronger than what the supply chain can deliver, and this will still be the case globally in 2025. On the LEAP deliveries, we are confident that we can deliver 15-20% more in 2025.”
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