Safran hails booming defence business in "record" annual results

(Alliance News) - Safran SA on Friday pointed to a rise in defence business as it posted "record" annual results and outlined medium-term financial targets.

In response, Safran shares jumped 7.7% to EUR331.10 on Friday morning in Paris.

The Paris-based aircraft equipment maker posted revenue of EUR31.19 billion in 2025, up 13% from EUR27.72 billion in 2024. Recurring operating income, which comprises roughly 15% of revenue, increased by 14% to EUR4.79 billion from EUR4.19 billion.

Safran's consolidated annual result was EUR5.96 billion, swinging from a loss of EUR5.05 billion in 2024. This includes a EUR5.70 billion gain on changes in the fair value of instruments hedging future cash flows, swinging from a loss of EUR4.67 billion the year prior.

The group share of net income swung to EUR7.18 billion in 2025 from a loss of EUR667 million in 2024, with diluted earnings per share of EUR17.17, improved from a EUR1.60 loss per share.

Safran proposed a dividend of EUR3.35 per share, which is up 16% from 2024 year's total payout of EUR2.90 per share.

For 2026, Safran guided a revenue growth rate in the low to mid-teens. It sees recurring operating income ranging from EUR6.1 billion to EUR6.2 billion. This is based on an anticipated 15% rise in deliveries of its Leap engines, a 20% rise in Services revenue and sales of Spare Parts increasing at a mid-teens rate.

Safran also noted that Ventilation Systems revenue will be reported under Equipment & Defense, rather than Aircraft Interiors, from 2026 onwards, "to strengthen the synergies with the power systems activities."

For the period from 2024 to 2028, the aerospace firm sees revenue growth at a compound annual rate of 10%. It targets 2028 recurring operating income between EUR7.0 billion and EUR7.5 billion.

"Safran upgrades its 2028 ambitions to reflect the strong civil engines aftermarket and the positive momentum in Defense (notably new Rafale orders). It takes into account the net impact from US tariffs and the estimated impact from the French corporate surtax," the firm said.

Safran supplies aircraft parts to its peer Dassault Systemes SE, which are used in Dassault Aviation's Rafale fighter jets. India's defence ministry on Thursday cleared the purchase of USD39 billion worth of defence equipment, including more Rafale jets, days ahead of a visit to the country by French President Emmanuel Macron.

Olivier Andres, chief executive of Safran, called 2025 "an outstanding year for our business, highlighted by record passenger traffic and growing momentum in defense activities".

"In a complex environment, Safran achieved unprecedented aftermarket revenues and LEAP engine production, both supported by improvements in the supply chain," Andres added.

By Holly Munks, Alliance News reporter

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