Safran has reported third-quarter revenue of €7.85bn, driven by record LEAP output and continued aftermarket momentum.
Third-quarter revenue was up 18.3% year over year, while year-to-date revenue was up 14.9% to €22bn. Full-year guidance has now been raised across “all metrics”.
Revenue growth for the full year is now expected to come in at 11% to 13%, with a recurring operating income of €5.1bn to €5.2bn (raised from €5bn to €5.1bn).
Free cash flow is now expected to come in at €3.5bn to €3.7bn (raised from €3.4bn to €3.6bn).
The revised outlook is based on the assumption that LEAP engine deliveries will close the year more than 20% higher than in 2024, and that spare parts and services revenue growth will be in the mid- to high-teens and low- to mid-twenties respectively.
“Overall, Safran remains on track to deliver another year of profitable growth and robust cash generation, supported by healthy demand, solid execution, and the resilience of our portfolio,” said CEO Olivier Andries.
Safran’s main business units each posted double-digit revenue growth during the third quarter, with propulsion growing 25.6% year over year, equipment and defence 12%, and aircraft interiors 10%.
Andries said the third quarter confirmed the strength of LEAP demand and improved LEAP output, reflecting “continued improvements across our supply chain”.
LEAP engine deliveries increased by 40% to 511 units compared to 365 in Q3 2024, demonstrating a “strong catch-up” from the first half of 2025, the company said.
During an investor call, Andries highlighted two key investments that were announced earlier this month, namely a new LEAP MRO facility and a new LEAP-1A assembly line in Casablanca, Morocco.
“This expansion strengthens our global industrial footprint and will support the sustained ramp-up of the LEAP engine deliveries in the years ahead, with the capacity to assemble up to 350 engines per year,” said the CEO.
Andries also said the third quarter underscores the health of the civil engine aftermarket.
Within the propulsion unit, aftermarket revenue was up 21.1% and original equipment (OE) sales revenue was up 34.4%.
The positive momentum in aftermarket activities seen in the first half of 2025 continued into the third quarter, with revenue from spare parts for civil engines (in USD) increasing by 16.1%.
This was driven primarily by CFM56 and high-thrust engines, although LEAP also “contributed positively” during the quarter.
Service revenue for civil engines (in USD) rose 24.2% year over year, driven by LEAP rate per flight hour (RPFH) contracts and high-thrust engines.
Within the aircraft interiors unit, revenue from aftermarket activities rose 6.8% year over year, driven by strong demand for cabin spare parts and management systems, particularly from Middle East and Asia-Pacific airline customers.
OE sales grew by 11.7%, supported by cabin galleys, inserts, and in-flight entertainment.
However, these gains were offset by weakness in business class seat deliveries, which declined almost 30% year over year, from 592 units to 428 units.
Safran attributed the decline to “certification challenges” - an ongoing headwind for the sector.
Other investments that Andries was keen to highlight include Safran’s acquisition of Collins Aerospace, a US-based flight control and actuation provider, which was completed in late July.
The CEO said that the acquisition has already contributed positively to Safran's Q3 performance, noting that the integration of the two companies has gotten off to a “great start”.
“Our teams are fully engaged and focused on unlocking cost synergies and new commercial opportunities,” he said. “We are confident that this acquisition will be a strong driver for Safran’s future performance.”
In its full-year guidance, Safran said that Collins’ flight control and actuation activity should contribute around €650 million in revenue.
If achieved, this would produce a mid-single-digit recurring operating margin before separation and integration costs.
Currency impact was significant during the third quarter, with the company reporting a negative impact of €309 million based on an average EUR/USD spot rate of 1.17.
Safran's EUR/USD hedge rate remained unchanged at 1.12 during the third quarter, in line with the same period last year, and its hedging portfolio now totals $54bn.
Pascal Bantegnie, chief financial officer at Safran, said the “sharp rise” in the EUR/USD exchange rate seen during the first half of 2025 is now beginning to “stabilise”.
“Overall, our approach to FX risk has kept us well protected, ensuring attractive hedge rates and supporting Safran’s competitiveness in a challenging market environment,” he said.
Going forward, Safran said the US-EU agreement on tariffs has “significantly reduced” the potential impact to the company’s revenue.
Further, the eligibility of Safran products under the United States-Mexico-Canada Agreement (USMCA) will have a positive impact on sales and revenue.
“In this fluid environment, Safran remains agile and actively continues to implement mitigation measures and commercial actions,” the company said.
“Nonetheless, a residual impact remains, primarily related to flows between China and the US, aluminium, steel and copper, or products not eligible under bilateral agreements.”
The net impact of tariffs and trade restrictions on full-year recurring operating income is now expected to be in the range of negative €100 million to €150 million.
Earlier this week, as covered by Airline Economics, Safran’s joint venture partner GE Aerospace also reported strong third-quarter earnings, driven by record LEAP demand and improved output.
GE Aerospace reported third-quarter adjusted revenue of $11.3bn — an increase of 26% year over year.
Describing the third-quarter results as “exceptional”, GE Aerospace likewise raised its full-year guidance “across the board”.