Safran expects revenue growth of around 10% in 2025, it said at its capital markets day on December 5, 2024.
In addition, the company's preliminary outlook for next year detailed a recurring operating income of around €4.7-4.8bn and a free cash flow generation of €2.8-3bn.
The French aircraft equipment manufacturer also set out its performance ambition for the next four years, expecting high single digit compound annual growth rate (CAGR) from 2024 through 2028. In addition, it forecast €6.-6.5bn recurring operating income in 2028 and €15-17bn cumulated free cash flow generation from 2024 through 2028. Through the four years, the company said it expects to return around 70% of free cash flow to shareholders through a 40% dividend payout as well as share buybacks with a €5bn programme from 2025 to 2028 to reduce share count, on top of the €750 million executed this year.
The company said its M&A strategy over the next four years will aim at “seizing bolt-on opportunities" that align with its core businesses and “Safran's DNA”, while also “applying rigorous financial discipline and pruning the portfolio”.
Furthermore, the company finally expects profit recognition of the LEAP engine rate per flight hour (RPFH) from 2025. The company has opted not to recognise profit on LEAP RPFH contracts up to 2024. LEAP-1A contracts will begin recognising profits next year and will then recognise profits in 2026 for the LEAP-1B.
Safran expects LEAP engine deliveries to increase 15-20% in 2025 over this year. The company anticipates 2024 LEAP engine deliveries to surpass 2023 by around 10%.
“Our 2028 financial ambition reflects our confidence in sustained value creation, driven by the ramp-up for both OE and MRO markets, the smooth aftermarket transition from CFM56 to LEAP, and the profitable growth trajectory for both equipment & defence and aircraft interiors,” said Safran CEO Olivier Andries.
In addition, spare parts revenue is expected to be up mid to high single digits in 2025, as well as services revenue to be up mid-teens.
Safran maintained its full year guidance for 2024, with revenues expected to be around €27.1bn, a recurring operating income of around €4.1bn, and a free cash flow of around €3bn.