The CEO of French engine manufacturer Safran believes that Boeing will reach production targets for its 737 MAX aircraft this year.
During an earnings call for the company’s 2024 results, Olivier Andriès, CEO of Safran, stated that he has “no doubt” that Boeing will produce 38 aircraft a month during the first half of 2025 and that it will reach 42 per month before the end of the year.
In early 2024, then US Federal Aviation Administration (FAA) chief Mike Whitaker set a monthly production cap of 38 on the 737 MAX jets after a door plug missing four key bolts flew off an Alaska Airlines 737 MAX 9.
During 2024, the engine manufacturer reported an adjusted revenue of €27.3bn ($29.5bn), an increase of 17.3% in comparison to the year prior. Adjusted recurring operating income was €4.1bn ($4.43bn), increasing by 30% in comparison to 2023. This was mainly due to growth in services, including scope changes of €15 million ($16.2 million) and a favourable currency impact of €82 million ($88.6 million).
Adjusted free cash flow was €3.2bn ($3.46bn), with an adjusted dividend per share of €2.90 ($3.13), subject to shareholder approval. Pascal Bantegnie, CFO of Safran, said this exceeded the company’s expectations, as they were guiding for €3bn ($3.24bn) for the year. This came from Safran’s operating margin, which stood at 15.1% of sales, up 150 basis points from 13.6% in 2023.
In total, during the 12-month period, 1,407 LEAP engines were delivered, compared to 1,570 in 2023, down 10%, with the company citing supply chain constraints. Safran expects to deliver between 15% and 20% more LEAP engines during this year than in 2024.
“Despite persistent supply chain difficulties as well as residual inflationary pressures, Safran delivered another remarkable year with revenues, profits, and cash flows reaching record levels,” said Andriès.
“In 2025, in terms of capital deployment, we expect to close the Collins' actuation and flight control activity by mid-year, propose to our forthcoming shareholder’s Annual Meeting a €2.90 ($3.13) dividend per share, and initiate the execution of our €5 billion ($5.4 billion) share buyback program,” he added.
The company also updated its 2025 financial outlook, maintaining its forecast for revenue growth of approximately 10%. Recurring operating income is now expected to be between €4.8bn ($5.18bn) and €4.9bn ($5.29bn), an increase from the previous estimate of €4.7bn ($5.08bn) to €4.8bn ($5.18bn) provided in December 2024.
Free cash flow projections have also been raised, now expected to range between €3bn ($3.24bn) and €3.2bn ($3.46bn), up from the earlier forecast of €2.8bn ($3.02bn) to €3.0bn ($3.24bn). This includes an estimated French corporate surtax of €380 million ($410.4 million) to €400 million ($432 million), higher than the previous estimate of €320 million ($345.6 million) to €340 million ($367.2 million).
Tags:
Safran