Safran Lifts 2025 Forecasts Amidst Air Traffic Surge
Paris, France - French aerospace giant Safran has revised upwards its profit and cash flow expectations for 2025. This follows a 30% surge in core income for 2024, driven by increased air traffic.
Financial Performance
Safran reported €4.119 billion in recurring operating income for 2024, a significant increase from €3.168 billion in 2023. Sales also saw an 18% rise to €27.317 billion. For 2025, the company forecasts €4.8-4.9 billion in comparable profit.
LEAP Engine Production
Safran, in partnership with GE Aerospace, manufactures the LEAP engine through their CFM International joint venture. The company anticipates a 15-20% increase in LEAP deliveries in 2025 and has revised its forecast for spare parts revenue upwards.
Growth Drivers
The company's propulsion segment, driven by services associated with strong air traffic, saw a 15% revenue increase. Air travel also contributed to an 18% rise in Equipment and Defense revenues. Additionally, its Aircraft Interiors business has achieved breakeven after restructuring.
Supply Chain Risks
Safran acknowledges the prevailing risks associated with fragile supply chains but has not incorporated any potential impact from new trade tariffs into its forecasts.
Customer Prioritization
Safran CEO Olivier Andreis emphasizes the importance of meeting the demands of both new aircraft manufacturers and existing jet maintenance needs to ensure profitable growth.
Outlook
Overall, Safran's positive performance and revised forecasts reflect the recovery and growth in the aviation industry. The company remains optimistic about its future prospects, despite ongoing supply chain challenges.