French aerospace company Safran has reported a revenue of €6.6 million ($7.1 million), during the third financial quarter of the year, up by 14% in comparison to the same period of 2023. This was driven by the “civil aftermarket and robust growth from equipment and defence and aircraft interiors,” said the company.
In addition to the third quarter, in the nine months up to September the company recorded revenue: €19.8 million ($21.4 million).
Following these results the company has adjusted its full year outlook, projecting a full-year revenue of approximately €27.1 billion ($29.3 million), slightly below its previous estimate of €27.4 billion. ($29.6 million) The adjustment comes as expectations for original equipment (OE) deliveries on narrowbody aircraft have been lowered reflecting shifts in market demand and production schedules.
Despite the revenue downgrade, Safran raised its forecast for recurring operating income to €4.1 billion ($4.4 million), up from a prior estimate of close to €4.0 billion ($4.3 million), this is due to a strong operational performance through the first three quarters of the year. Free cash flow is expected to reach around €3.0 billion ($3.2 million).
Deliveries of company’s LEAP engines, which it co-produces with GE Aerospace, were up sequentially with 365 units distributed during the quarter, up from 297 units during the second quarter of the year. Deliveries were down in comparison to the third quarter of the year prior by 6%, the company put this down to supply strain constraints.
"In light of the strong performance in the first 9 months of the year, with a 17% growth in revenue driven notably by aftermarket activities for engines and aircraft equipment, Safran is raising its full-year profit forecast,” said Olivier Andriès, CEO of Safran.
He added: “Narrowbody OE deliveries were limited by supply chain bottlenecks in specific areas. The Group's priority remains to best meet customer needs and unlock supply chain constraints. We remain very confident in our ability to continue on a path of profitable growth in the years to come, which we will present at our upcoming CMD."
Safran’s aircraft interiors division reported a 28.4% sales increase, when compared to the same quarter of last year. Despite these gains, sales remain 4% below 2019 levels, “reflecting the lasting impact of the global aviation slowdown during COVID-19,” said the company.
This growth was driven by original equipment (OE) sales, which grew by 30.2%, led by a rise in business class seat deliveries. Safran recorded 592 business class units sold in the third quarter, up from 174 units in the same period last year and an increase from 508 units in the previous quarter of the year.
Aftermarket activities rose by 25.4%, with high demand for cabin spares and seat maintenance, especially from Asian and Middle Eastern airlines. With this increase being linked to the recovery of the widebody aircraft market.
The company has also adjusted its full year outlook, projecting a full-year revenue of approximately €27.1 billion ($29.3 million), slightly below its previous estimate of €27.4 billion. ($29.6 million) The adjustment comes as expectations for original equipment (OE) deliveries on narrowbody aircraft have been lowered reflecting shifts in market demand and production schedules.
Despite the revenue downgrade, Safran raised its forecast for recurring operating income to €4.1 billion ($4.4 million), up from a prior estimate of close to €4.0 billion ($4.3 million), this is due to a strong operational performance through the first three quarters of the year. Free cash flow is expected to reach around €3.0 billion ($3.2 million).