- Safran’s adjusted recurring operating margin hit 15.1%, up from 12.8% year-on-year (y/y), beating the estimate of 14.9%.
- Propulsion adjusted recurring operating margin was 19.9%, up from 18.5% y/y but below the estimate of 20.8%.
- Equipment & Defense adjusted recurring operating margin rose to 12.7% from 11.4% y/y, exceeding the estimate of 12%.
- Aircraft Interiors adjusted recurring operating margin turned positive at 0.7%, compared to -8.6% y/y, far surpassing the estimate of -0.28%.
- Adjusted recurring operating income was €1.97 billion, up 41% y/y, beating the estimate of €1.83 billion.
- Adjusted revenue totaled €13.05 billion, a 19% increase y/y, exceeding the estimate of €12.76 billion.
- Adjusted Propulsion revenue reached €6.46 billion, up 14% y/y, slightly above the estimate of €6.38 billion.
- Equipment & Defense adjusted revenue was €5.17 billion, up 26% y/y, surpassing the estimate of €4.98 billion.
- Aircraft Interiors adjusted revenue amounted to €1.41 billion, a 21% increase y/y, beating the estimate of €1.38 billion.
- Adjusted net income came in at €1.43 billion, up 37% y/y, outpacing the estimate of €1.38 billion.
- Adjusted diluted EPS was €3.27, compared to €2.40 y/y, beating the estimate of €2.64.
- Free cash flow remained steady at €1.46 billion y/y, matching the estimate of €1.41 billion.
- LEAP engine deliveries totaled 664, a 15% decrease y/y, missing the estimate of 769.
- CFM56 engine deliveries were 28, up 17% y/y, compared to the estimate of 16.4.
- The year forecast still expects adjusted revenue around €27.4 billion, in line with the estimate of €27.27 billion.
- Free cash flow for the year is projected to be about €3 billion, close to the estimate of €3.02 billion.
- Safran confirms its full-year guidance.
“`
A look at Safran SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Safran SA shows a promising long-term outlook with strong ratings across several key factors. With a high score in Growth and Momentum, the company is positioned well for future expansion and market performance. Additionally, Safran SA demonstrates resilience and stability in its operations, as reflected in its favorable score in the Resilience category. While the Value and Dividend scores are not as high, the overall outlook for Safran SA appears positive, pointing towards potential growth and opportunities in the aerospace, defense, and security sectors.
As an international tier-1 supplier of systems and equipment in aerospace, defense, and security, Safran SA plays a critical role in supplying engines for various vehicles, landing systems, onboard electronics, identity verification systems, and more. The company’s diverse product offerings cater to a wide range of industries, showcasing its expertise in technological innovation and security solutions. With strong growth potential and a solid foundation in place, Safran SA stands out as a key player in the global market for aerospace and defense equipment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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