Safran reports first quarter 2025 revenue – Strong momentum in both civil aerospace and defense

• Q1 2025 adjusted revenue up +16.7% reaching €7,257 million
• FY 2025 outlook confirmed, excluding any potential impact of tariffs

Paris, April 25, 2025

• Q1 2025 adjusted revenue up +16.7% reaching €7,257 million
• FY 2025 outlook confirmed, excluding any potential impact of tariffs

Q1 2025 consolidated data

• Revenue: € 7,380 million

Foreword 

• All figures in this press release represent adjusted data, except where noted. Please refer to the definitions and reconciliation between Q1 2025 consolidated revenue and adjusted revenue. Please refer to the definitions contained in the footnotes and in the Notes on page 6 of this press statement.
• Organic variations exclude changes in scope and currency impacts for the period.

CEO Olivier Andriès said: “Safran kicked off the year on a strong note across all businesses, with 17% revenue growth. Our activity benefits from substantial growth in civil aftermarket revenues. While global trade discussions are fluid, Safran is actively working to mitigate the economic impact from tariffs, notably by adapting supply flows and engaging with customers. Actual performance and robust momentum in both the civil aerospace and defense sectors reinforce our strong confidence in achieving our guidance, excluding any potential impact of tariffs, which it would be premature to quantify at this stage.”

Q1 2025 revenue

Q1 2025 revenue stood at €7,257 million, up by 16.7% compared to Q1 2024 (+13.9% on an organic basis). Change in scope was +€32 million¹. Currency impact was +€142 million, with an average €/$ spot rate of 1.05 in Q1 2025 (1.09 in Q1 2024). €/$ hedge rate in Q1 2025 stood at 1.12 (1.12 in Q1 2024).

As for organic revenue per division:

• Propulsion was up by 16.4% driven by spare parts growth.
  Spare parts for civil engines (in $) were up by 25.1%, with growth mainly attributable to CFM56 and high-thrust engines. Services for civil engines (in $) were up by 17.6% led by LEAP rate per flight hour (RPFH) contracts.
  319 LEAP engines were delivered compared to 367 in Q1 2024, reflecting the soft production at the start of the year. Lower volume was more than offset by favorable customer mix.
  Military and helicopter engine revenues were up compared to Q1 2024, driven by a high level of services.
• Equipment & Defense was up 10.8%, particularly driven by nacelles, landing systems and avionics.
  Aftermarket services rose by 13.2% with growth across all activities, notably in landing systems (spare parts for landing gears, wheels and brakes), and avionics.
  OE sales grew by 9.1%, supported by higher volumes in nacelles (G700, A320neo), avionics, defense (land systems, propulsion and guidance systems) and space activities (satellite communication systems).
• Aircraft Interiors had a solid 13.8% increase, exceeding Q1 2019 sales by 8%.
  Aftermarket activities grew by 17.4%, mostly driven by Cabin (primarily spare parts), with progression of spares on Seats.
  OE sales grew by 11.5% led by Seats activities, with a significant increase in Business class seat deliveries (704 units in Q1 2025 vs 242 in Q1 2024).

^{1 Acquisition of Air Liquide aeronautical oxygen and nitrogen activities in February 2024 and Preligens in September 2024. Consolidation of Syrlinks and Safran Data Systems India from Q1’25.}

Currency hedges

The hedge book amounts to $54.1 billion in March 2025 ($54.7 billion in December 2024). 

• 2025 hedge rate of $1.12, for an estimated net exposure of $14.0 billion.
• 2026, 2027 and 2028 are fully hedged: targeted hedge rate of $1.12, for an estimated net annual exposure of $14.0 billion.
• 2029 hedging has started.

2028 OCEANE early redemption

On February 28, 2025, Safran announced the early redemption on April 1, 2025 (soft call option) of its €730 million convertible bonds initially due April 1, 2028 (the “2028 OCEANEs”). Consequently, prior to the early redemption date, 93.3% of the 2028 OCEANEs were converted into existing shares previously repurchased by Safran. The remaining 2028 OCEANEs were reimbursed at par (i.e. €180.89 par OCEANE 2028) for a total cash amount of €49 million. This transaction reduces the Group’s debt while marginally affecting cash.

Share repurchase programmes

Between January and April 2025, Safran repurchased c. 1.5 million shares and reallocated c. 0.23 million shares, initially purchased for delivery upon conversion of Safran convertible bonds, hence a total of 1.7 million shares for cancellation.

Contemplated acquisition of Collins actuation and flight control activities

On April 4, 2025, the European Commission approved the contemplated acquisition, subject to ongoing analyses on the divestment of Safran’s North American electromechanical actuation business and Woodward suitability as a purchaser.

On April 24, 2025, the UK Competition and Markets Authority closed the consultation period on the contemplated acquisition and on the proposed divestment of Safran’s North American electromechanical actuation business to Woodward. The approval is still pending.

Dividend

As a reminder, for fiscal year 2024, a dividend² payment of €2.90 per share (+32% vs dividend paid upon fiscal year 2023) will be proposed to the shareholders’ vote at the Annual General Meeting on May 22, 2025.

^{2 Ex-date: May 27, 2025 ; Record date: May 28, 2025 ; Payment date: June 2, 2025.}
 

Full-year 2025 outlook

Actual performance and robust momentum in both the civil aerospace and defense sectors reinforce Safran’s strong confidence in achieving its full-year guidance, excluding any potential impact of tariffs, which it would be premature to quantify at this stage.

Safran is actively working to mitigate the economic impact of tariffs, which it is premature to assess given the fluctuating situation. We are engaging with customers, adapting logistics flows, optimizing use of Free Trade Zones, Bonded Warehouses, and applying for duty drawbacks and USMCA exemptions when applicable.

Safran confirms its full-year 2025 outlook, excluding any potential impact of tariffs (at constant scope, i.e. excluding the contemplated acquisition of Collins Aerospace’s actuation & flight controls business):

• Revenue growth: around 10%;
• Recurring operating income: €4.8 – €4.9 billion;
• Free Cash Flow €3.0 – €3.2 billion, of which €(380) – €(400) million estimated impact from the French corporate surtax and subject to payment schedule of some advance payments and the rhythm of payments by state-clients.

This outlook is based notably, but not exclusively, on the following assumptions::

• LEAP engine deliveries: up 15% to 20% compared to 2024;
• “Spare parts” revenue (in USD): up low-teens (versus up HSD+);
• “Services” revenue (in USD): up mid-teens;
• €/$ spot rate of 1.10;
• €/$ hedge rate of 1.12.

The main risk factors are the supply chain production capability and tariffs-related impacts.

Agenda

• Annual General Meeting May 22, 2025
• H1 2025 results July 31, 2025
• Q3 2025 revenue October 24, 2025
• FY 2025 results February 13, 2026

Safran will host today a webcast for analysts and investors at 8.30 am CET. 

1. If you only want to follow the webcast and listen the conference call, please register using the following link: https://edge.media-server.com/mmc/p/i6ve8kpu/
   Use this same link for the replay which will be available 2 hours after the event concludes and remains accessible for 90 days. 
    
2. If you want to participate in the Q&A session at the end of the conference, please pre-register using the link below in order to receive by email the connection details (dial-in numbers and personal passcode):
   https://register-conf.media-server.com/register/BI4110ab281ea54ce793bf1893d1516a5d

Registration links are also available on Safran’s website under the Finance home page as well as in the “Publications and Results” and “Calendar” sub-sections.

Press release and presentation are available on Safran’s website at www.safran-group.com (Finance section).

Source : Safran

AeroMorning.com