In the framework of its Capital Markets Day 2024, held today in Paris, the aerospace group Safran will present a comprehensive analysis of its current results, financial projections, and strategic priorities for the coming years. The company, which defines itself as a leader in the aviation, defense, and space markets, outlined its vision to consolidate profitable and sustained growth through 2028.
Results and financial projections
Safran confirmed its forecasts for 2024, anticipating revenues of approximately €27.1 billion, a recurring operating income of €4.1 billion, and free cash flow close to €3 billion. Among the key factors behind these figures, the company highlighted an estimated increase in civil market services revenue, expected to grow at a double-digit rate during the year.
For 2025, Safran projects a 10% revenue increase and free cash flow between €2.8 billion and €3 billion. According to the company, these figures will be driven by a 15% to 20% increase in LEAP engine deliveries and revenue growth in both spare parts and services in the civil engine market.
In the longer term, the company anticipates cumulative free cash flow of between €15 billion and €17 billion from 2024 to 2028, and an annual recurring operating income of between €6 billion and €6.5 billion by 2028.
Technological transition: from CFM56 to LEAP
A key aspect of Safran’s strategy is the gradual transition in the aftermarket, moving from CFM56 engines to the LEAP model. According to the company, it will start recognizing earnings from LEAP-1A flight-hour contracts in 2025, and from LEAP-1B in 2026, marking a significant milestone in the product lifecycle. Safran estimates that over 80% of earnings from these contracts will be recognized after 2030, reflecting a conservative approach to managing initial margins.
The company emphasized its commitment to sustainability and the development of next-generation aircraft. As Safran highlighted, investments in research and development will be directed toward leading the sector’s decarbonization and positioning itself at the forefront of technological solutions for aviation.
During the presentation, Safran outlined the core pillars of its strategy for the coming years, which include strengthening the supply chain through a proactive action plan, increasing the production of defense and space equipment in response to geopolitical changes, scaling maintenance, repair, and overhaul (MRO) operations to meet growing demand, and adopting a disciplined acquisition policy focused on opportunities that complement its core portfolio.
Shareholder returns
According to Safran, approximately 70% of the cumulative free cash flow from 2024 to 2028 will be allocated to shareholder returns, through a dividend program representing 40% of profits and a €5 billion share buyback scheme to be implemented between 2025 and 2028.
With 92,000 employees and sales of €23.2 billion in 2023, Safran’s CEO, Olivier Andriés, stated that the company maintains «leadership positions in fast-growing markets in both civil aviation and defense, with cutting-edge technology and services,» making it «uniquely positioned to embark on a new period of profitable growth.»
“Our financial ambition for 2028 reflects our confidence in sustained value creation, driven by increased production in the original equipment (OE) and maintenance, repair, and overhaul (MRO) markets, the smooth transition in the aftermarket from CFM56 to LEAP, and profitable growth trajectories in both Equipment & Defense and Aircraft Interiors,” while the «solid generation of free cash flow will allow us to enhance shareholder returns while investing in growth and innovation to prepare the next generation of aircraft and advance decarbonization,» he concluded.
