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Safran reports first quarter 2023 revenue - Strong start of the year in commercial engines


Paris, April 26, 2023

  • Narrowbody air traffic back to 2019 level
  • LEAP deliveries up 53%, in line with full year target
  • Full-year 2023 outlook reaffirmed

Q1 2023 adjusted data

  • Revenue €5,266 million, up 29.4% (24.7% organic) 

Q1 2023 consolidated data

  • Revenue: €5,353 million



  • All figures in this press release represent adjusted data, except where noted. Please refer to the definitions and reconciliation between Q1 2023 consolidated revenue and adjusted revenue. Please refer to the definitions contained in the footnotes and in the Notes on page 6 of this press statement.
  • Organic variations exclude changes in scope and currency impacts for the period.

CEO Olivier Andriès said: “Safran had a strong start of the year, especially in civil aftermarket which is benefiting from the recovery in narrowbody traffic to pre-crisis levels and from airlines' readiness plan for the summer season. Our deliveries of LEAP engines have stepped up as planned, an encouraging performance in a context of persistent difficulties in the global supply chain. We are committed to meeting our customer commitments and remain both vigilant and fully confident in our efforts to offset inflation and to deliver our financial performance for the year.


Q1 2023 revenue

The global narrowbody capacity is back to 2019 level in Q1 2023 buoyed by a rebound in Chinese domestic air traffic after the lift of travel restrictions in December 2022. In the first three months of 2023, narrowbody ASK were at 100% (on average) of 2019.

Q1 2023 revenue increased by 29.4% at €5,266 million compared to Q1 2022. Growth was mainly fueled by Propulsion and Aircraft Interiors activities. Change in scope was €15 million1. Currency impact of €175 million reflects a positive translation impact of USD revenues, with an average €/$ spot rate of 1.07 in Q1 2023 (1.12 in Q1 2022). €/$ hedge rate was at 1.13 (1.15 in Q1 2022).

On an organic basis, Q1 2023 revenue increased by 24.7%: 

  • Propulsion increased by 34.9% driven by a strong civil aftermarket activity (+38.1% in $) supported by a high level of spare parts sales for CFM56 and higher than expected revenue of LEAP RPFH2 contracts3. High thrust engines spare parts sales displayed a decent growth during the quarter. In Q1 2023, LEAP deliveries stepped up by 53%, reaching 366 units compared with 239 in Q1 2022, a sequential increase of 13% from 324 units in Q4 2022 and are in line with full year target. Military engine activities were up mainly due to higher M88 deliveries. Helicopter turbine activities increased slightly both for OE and services;
  • Equipment & Defense was up 10.3% driven by strong aftermarket services in all division. OE sales were constrained by industry-wide supply chain difficulties and by downwards revised demand. Aftermarket activities have been particularly strong for carbon brakes, nacelles and aerosystems activities. Electronics & Defense activities were flattish;
  • Aircraft Interiors revenue increased by 37.7% driven by spare parts deliveries both for Seats and Cabin. OE activities increased to a lesser extent mainly for Cabin. Business class seats deliveries were down at 324 in Q1 2023 compared to 346 in Q1 2022. 

1 Divestment of Pioneer Aerospace in April 2022 and Arresting Systems in June 2022. Acquisition of Orolia in July 2022.
2 Rate per Flight Hours.
3 As a reminder, accounting wise, no margin recognition for LEAP RPFH contracts up to 2025.


Currency hedges

The hedge book amounts to $53.7 billion in April 2023, compared to $52.6 billion in January 2023.
2023 is hedged: targeted hedge rate of $1.13, for an estimated net exposure of $10.0 billion.

2024 is hedged: targeted hedge rate between $1.13 and 1.15, for an estimated net exposure of $11.0 billion.

2025 and 2026 are hedged: targeted hedge rate between $1.12 and 1.14, for a respective estimated net exposure of $12.0 billion and $13.0 billion. 

2027 is partially hedged: $10.2 billion hedged out of an estimated net exposure of $14.0 billion.


Liability management transaction (2027 OCEANEs)

Purchase of up to 9.4 million shares announced on October 28, 2022 in order to hedge the potential dilution of 2027 convertible bonds4:

  • As at March 31, 2023, Safran already repurchased 6.9 million shares;
  • On April 7, 2023, Safran has entered into an agreement for the implementation of a new tranche of this repurchase. According to this agreement, Safran will acquire up to Euro 350 million worth of ordinary shares from April 11, 2023 and no later than June 9, 2023.

Those shares will be delivered to 2027 OCEANEs’ holders if and when they exercise their conversion right.

4 c.9.24 million convertible bonds maturing in May 2027 (2027 OCEANEs) for a total nominal value of €1,000M and a unit par value of €108.23. Conversion ratio currently set at 1.009. Current conversion price of €107.26 with a potential dilution of 2.18% of capital. Redemption at maturity or early redemption at Safran’s discretion from June 2024 if the stock price exceeds 130% of conversion price (currently c.139€). Refer to the Terms and Conditions of the 2027 OCEANEs available on Safran website.


Portfolio management

Cargo and catering activities (within Safran Cabin perimeter) closing is expected in Q2 2023.

Aubert & Duval share purchase agreement signed with Airbus and Tikehau Capital on June 21st, 2022. Closing expected at the end of April 2023 and the first consolidation (equity method) within Safran Propulsion division will start from May 1st, 2023.

Thales electrical systems activities closing is expected in H2 2023.


Full-year 2023 outlook reaffirmed

Safran expects to achieve for full-year 2023 (at current perimeter, adjusted data, €/$ spot rate of 1.05 and hedge rate of 1.13):

  • Revenue of at least €23.0 billion; 
  • Recurring operating income of c.€3.0 billion; 
  • Free Cash Flow of at least €2.5 billion, subject to payment schedule of some advance payments.

This outlook is based notably, but not exclusively, on the following assumptions:

  • No further disruption to the world economy;
  • Air traffic: narrowbody ASK back to 2019 level in the course of 2023; 
  • LEAP engine deliveries: increase by c.50%;
  • Civil aftermarket revenue: up in the low twenties (in USD).

The main risk factor remains the supply chain production capabilities.




  • Annual General Meeting May 25, 2023
  • H1 2023 results July 27, 2023
  • Q3 2023 revenue October 27, 2023
  • FY 2023 results February 15, 2024




Safran will host today a webcast for analysts and investors at 8.30 am CET. 

  1. If you only want to follow the webcast and listen the conference call, please register using the following link: https://edge.media-server.com/mmc/p/eyrgz4hw
    Use this same link for the replay which will be available 2 hours after the event concludes and remains accessible for 90 days. 
  2. If you want to participate in the Q&A session at the end of the conference, please pre-register using the link below in order to receive by email the connection details (dial-in numbers and personal passcode):

Registration links are also available on Safran’s website under the Finance home page as well as in the "Publications and Results" and "Calendar" sub-sections.

Press release and presentation are available on Safran’s website at www.safran-group.com (Finance section).


Key figures


1. Segment breakdown

Segment breakdown of adjusted revenue
(In Euro million)
Q1 2022 Q1 2023 % change % change in scope % change currency % change organic
Propulsion 1,942 2,714 39.8% - 4.9% 34.9%
Equipment & Defense 1,716 1,966 14.6% 0.9% 3.4% 10.3%
Aircraft Interiors 409 584 42.8% - 5.1% 37.7%
Holding company & Others 4 2 n/s n/s n/s n/s
Total Group 4,071 5,266 29.4% 0.4% 4.3% 24.7%
OE / Services adjusted revenue breakdown
(In Euro million)
Q1 2022 Q1 2023
OE Services OE Services
Propulsion 710 1,232 1,106 1,608
% of revenue 36.6% 63.4% 40.8% 59.2%
Equipment & Defense 1,070 646 1,144 822
% of revenue 62.4% 37.6% 58.2% 41.8%
Aircraft Interiors5 288 121 395 189
% of revenue 70.4% 29.6% 67.6% 32.4%

5 Retrofit is included in OE

2022 revenue by quarter
(In Euro million)
Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022
Propulsion 1,942 2,234 2,503 2,827 9,506
Equipment & Defense 1,716 1,790 1,820 2,209 7,535
Aircraft Interiors 409 461 522 586 1,978
Holding company & Others 4 4 4 4 16
Total Group 4,071 4,489 4,849 5,626 19,035
Euro/USD rate Q1 2022 Q1 2023
Average spot rate 1.12 1.07
Spot rate (end of period) 1.11 1.09
Hedge rate 1.15 1.13


2. Number of products delivered on major aerospace programs

Number of units delivered Q1 2022 Q1 2023 % change
LEAP engines 239 366 53%
CFM56 engines 15 15 -
High thrust engines 48 37 -23%
Helicopter turbines 110 136 24%
M88 engines 12 17 42%
A350 landing gears sets 10 12 20%
A330neo nacelles 12 8 -33%
A320neo nacelles 141 135 -4%
Small nacelles (biz & regional jets) 117 134 15%
A350 lavatories 71 106 49%
Business class seats 346 324 -6%
A320 emergency slides 1,106 779 -30%
787 primary power distribution systems 8 61 x 7.6




Adjusted revenue:
To reflect the Group’s actual economic performance and enable it to be monitored and benchmarked against competitors, Safran prepares an adjusted income statement in addition to its consolidated financial statements.
Safran’s consolidated revenue has been adjusted for the impact of:

  • the mark-to-market of foreign currency derivatives, in order to better reflect the economic substance of the Group’s overall foreign currency risk hedging strategy:
    • revenue net of purchases denominated in foreign currencies is measured using the effective hedged rate, i.e., including the costs of the hedging strategy,
    • all mark-to-market changes on instruments hedging future cash flows are neutralized.

The resulting changes in deferred tax have also been adjusted.

First-quarter 2023 reconciliation between consolidated revenue and adjusted revenue:

Q1 2023
(In Euro million)
Consolidated revenue Hedge accounting Business combinations Adjusted revenue
Remeasurement of revenue Deferred hedging gain (loss) Amortization intangible assets - Sagem-Snecma PPA impacts - other business combinations
Revenue 5,353 (87) - - - 5,266

Contact Us

Safran is an international high-technology group, operating in the aviation (propulsion, equipment and interiors), defense and space markets. Its core purpose is to contribute to a safer, more sustainable world, where air transport is more environmentally friendly, comfortable and accessible. Safran has a global presence, with 83 000 employees and sales of 19.0 billion euros in 2022, and holds, alone or in partnership, world or regional leadership positions in its core markets. Safran undertakes research and development programs to maintain the environmental priorities of its R&T and innovation roadmap. 

Safran is listed on the Euronext Paris stock exchange and is part of the CAC 40 and Euro Stoxx 50 indices.

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