Safran reports first quarter 2025 revenue - Strong momentum in both civil aerospace and defense
Finance
Paris, April 25, 2025
- Q1 2025 adjusted revenue up +16.7% reaching €7,257 million
- FY 2025 outlook confirmed, excluding any potential impact of tariffs
Q1 2025 consolidated data
- Revenue: € 7,380 million
Foreword
- All figures in this press release represent adjusted data, except where noted. Please refer to the definitions and reconciliation between Q1 2025 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 kicked off the year on a strong note across all businesses, with 17% revenue growth. Our activity benefits from substantial growth in civil aftermarket revenues. While global trade discussions are fluid, Safran is actively working to mitigate the economic impact from tariffs, notably by adapting supply flows and engaging with customers. Actual performance and robust momentum in both the civil aerospace and defense sectors reinforce our strong confidence in achieving our guidance, excluding any potential impact of tariffs, which it would be premature to quantify at this stage.”
Q1 2025 revenue
Q1 2025 revenue stood at €7,257 million, up by 16.7% compared to Q1 2024 (+13.9% on an organic basis). Change in scope was +€32 million1. Currency impact was +€142 million, with an average €/$ spot rate of 1.05 in Q1 2025 (1.09 in Q1 2024). €/$ hedge rate in Q1 2025 stood at 1.12 (1.12 in Q1 2024).
As for organic revenue per division:
- Propulsion was up by 16.4% driven by spare parts growth.
Spare parts for civil engines (in $) were up by 25.1%, with growth mainly attributable to CFM56 and high-thrust engines. Services for civil engines (in $) were up by 17.6% led by LEAP rate per flight hour (RPFH) contracts.
319 LEAP engines were delivered compared to 367 in Q1 2024, reflecting the soft production at the start of the year. Lower volume was more than offset by favorable customer mix.
Military and helicopter engine revenues were up compared to Q1 2024, driven by a high level of services. - Equipment & Defense was up 10.8%, particularly driven by nacelles, landing systems and avionics.
Aftermarket services rose by 13.2% with growth across all activities, notably in landing systems (spare parts for landing gears, wheels and brakes), and avionics.
OE sales grew by 9.1%, supported by higher volumes in nacelles (G700, A320neo), avionics, defense (land systems, propulsion and guidance systems) and space activities (satellite communication systems). - Aircraft Interiors had a solid 13.8% increase, exceeding Q1 2019 sales by 8%.
Aftermarket activities grew by 17.4%, mostly driven by Cabin (primarily spare parts), with progression of spares on Seats.
OE sales grew by 11.5% led by Seats activities, with a significant increase in Business class seat deliveries (704 units in Q1 2025 vs 242 in Q1 2024).
1 Acquisition of Air Liquide aeronautical oxygen and nitrogen activities in February 2024 and Preligens in September 2024. Consolidation of Syrlinks and Safran Data Systems India from Q1’25.
Currency hedges
The hedge book amounts to $54.1 billion in March 2025 ($54.7 billion in December 2024).
- 2025 hedge rate of $1.12, for an estimated net exposure of $14.0 billion.
- 2026, 2027 and 2028 are fully hedged: targeted hedge rate of $1.12, for an estimated net annual exposure of $14.0 billion.
- 2029 hedging has started.
2028 OCEANE early redemption
On February 28, 2025, Safran announced the early redemption on April 1, 2025 (soft call option) of its €730 million convertible bonds initially due April 1, 2028 (the “2028 OCEANEs”). Consequently, prior to the early redemption date, 93.3% of the 2028 OCEANEs were converted into existing shares previously repurchased by Safran. The remaining 2028 OCEANEs were reimbursed at par (i.e. €180.89 par OCEANE 2028) for a total cash amount of €49 million. This transaction reduces the Group’s debt while marginally affecting cash.
Share repurchase programmes
Between January and April 2025, Safran repurchased c. 1.5 million shares and reallocated c. 0.23 million shares, initially purchased for delivery upon conversion of Safran convertible bonds, hence a total of 1.7 million shares for cancellation.
Contemplated acquisition of Collins actuation and flight control activities
On April 4, 2025, the European Commission approved the contemplated acquisition, subject to ongoing analyses on the divestment of Safran’s North American electromechanical actuation business and Woodward suitability as a purchaser.
On April 24, 2025, the UK Competition and Markets Authority closed the consultation period on the contemplated acquisition and on the proposed divestment of Safran’s North American electromechanical actuation business to Woodward. The approval is still pending.
Dividend
As a reminder, for fiscal year 2024, a dividend2 payment of €2.90 per share (+32% vs dividend paid upon fiscal year 2023) will be proposed to the shareholders’ vote at the Annual General Meeting on May 22, 2025.
2 Ex-date: May 27, 2025 ; Record date: May 28, 2025 ; Payment date: June 2, 2025.
Full-year 2025 outlook
Actual performance and robust momentum in both the civil aerospace and defense sectors reinforce Safran’s strong confidence in achieving its full-year guidance, excluding any potential impact of tariffs, which it would be premature to quantify at this stage.
Safran is actively working to mitigate the economic impact of tariffs, which it is premature to assess given the fluctuating situation. We are engaging with customers, adapting logistics flows, optimizing use of Free Trade Zones, Bonded Warehouses, and applying for duty drawbacks and USMCA exemptions when applicable.
Safran confirms its full-year 2025 outlook, excluding any potential impact of tariffs (at constant scope, i.e. excluding the contemplated acquisition of Collins Aerospace’s actuation & flight controls business):
- Revenue growth: around 10%;
- Recurring operating income: €4.8 - €4.9 billion;
- Free Cash Flow €3.0 - €3.2 billion, of which €(380) - €(400) million estimated impact from the French corporate surtax and subject to payment schedule of some advance payments and the rhythm of payments by state-clients.
This outlook is based notably, but not exclusively, on the following assumptions::
- LEAP engine deliveries: up 15% to 20% compared to 2024;
- “Spare parts” revenue (in USD): up low-teens (versus up HSD+);
- “Services” revenue (in USD): up mid-teens;
- €/$ spot rate of 1.10;
- €/$ hedge rate of 1.12.
The main risk factors are the supply chain production capability and tariffs-related impacts.
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Agenda
- Annual General Meeting May 22, 2025
- H1 2025 results July 31, 2025
- Q3 2025 revenue October 24, 2025
- FY 2025 results February 13, 2026
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Safran will host today a webcast for analysts and investors at 8.30 am CET.
- 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/i6ve8kpu/
Use this same link for the replay which will be available 2 hours after the event concludes and remains accessible for 90 days.
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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 2024 | Q1 2025 | % change | % change in scope |
% change currency |
% change organic |
|---|---|---|---|---|---|---|
| Propulsion | 3,097 | 3,684 | 19.0% | - | 2.6% | 16.4% |
| Equipment & Defense | 2,444 | 2,783 | 13.9% | 1.3% | 1.8% | 10.8% |
| Aircraft Interiors | 676 | 788 | 16.6% | - | 2.8% | 13.8% |
| Holding company & Others | 3 | 2 | (33.3)% | - | - | (33.3)% |
| Total Group | 6,220 | 7,257 | 16.7% | 0.5% | 2.3% | 13.9% |
| OE / Services adjusted revenue breakdown (In Euro million) |
Q1 2024 | Q1 2025 | ||
|---|---|---|---|---|
| OE | Services | OE | Services | |
| Propulsion | 1,198 | 1,899 | 1,303 | 2,381 |
| % of revenue | 38.7% | 61.3% | 35.4% | 64.6% |
| Equipment & Defense | 1,470 | 974 | 1,661 | 1,122 |
| % of revenue | 60.1% | 39.9% | 59.7% | 40.3% |
| Aircraft Interiors3 | 417 | 259 | 477 | 311 |
| % of revenue | 61.7% | 38.3% | 60.5% | 39.5% |
3 Retrofit is included in OE
| 2024 revenue by quarter (In Euro million) |
Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | FY 2024 |
|---|---|---|---|---|---|
| Propulsion | 3,097 | 3,364 | 3,339 | 3,852 | 13,652 |
| Equipment & Defense | 2,444 | 2,726 | 2,527 | 2,921 | 10,618 |
| Aircraft Interiors | 676 | 735 | 771 | 855 | 3,037 |
| Holding company & Others | 3 | 2 | 2 | 3 | 10 |
| Total Group | 6,220 | 6,827 | 6,639 | 7,631 | 27,317 |
| Euro/USD rate | Q1 2024 | Q1 2025 |
|---|---|---|
| Average spot rate | 1.09 | 1.05 |
| Spot rate (end of period) | 1.08 | 1.08 |
| Hedge rate | 1.12 | 1.12 |
2. Number of products delivered on major aerospace programs
| Number of units delivered | Q1 2024 | Q1 2025 | Change in units |
Change in % |
|---|---|---|---|---|
| LEAP engines | 367 | 319 | (48) | (13)% |
| CFM56 engines | 12 | 12 | - | - |
| High thrust engines | 56 | 48 | (8) | (14)% |
| Helicopter turbines | 136 | 153 | 17 | 13% |
| M88 engines | 8 | 2 | (6) | (75)% |
| A320neo nacelles | 135 | 155 | 20 | 15% |
| A320 landing gears sets | 167 | 171 | 4 | 2% |
| A320 emergency slides | 1,080 | 1,186 | 106 | 10% |
| A330neo nacelles | 16 | 20 | 4 | 25% |
| A350 landing gears sets | 15 | 13 | (2) | (13)% |
| A350 lavatories | 81 | 51 | (30) | (37)% |
| 787 landing gears sets | 11 | 16 | 5 | 45% |
| 787 primary power distribution systems | 88 | 88 | - | - |
| Small nacelles (biz & regional jets) | 121 | 181 | 60 | 50% |
| Business class seats | 242 | 704 | 462 | x2.9 |
Notes
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.
Q1 2025 reconciliation between consolidated income statement and adjusted consolidated income statement:
| Q1 2025 (In Euro million) |
Consolidated data | Currency hedging | Business combinations | Adjusted revenue | ||
|---|---|---|---|---|---|---|
| Remeasurement of revenue | Deferred hedging gain / loss | Amortization intangible assets - Sagem-Snecma merger | PPA impacts - other business combinations | |||
| Revenue | 7,380 | (123) | - | - | - | 7,257 |
IMPORTANT ADDITIONAL INFORMATION
This document contains forward-looking statements relating to Safran, which do not refer to historical facts but refer to expectations based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those included in such statements. These statements or disclosures may discuss goals, intentions and expectations as to future trends, synergies, value accretions, plans, events, results of operations or financial condition, or state other information relating to Safran, based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “would,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “possible,” “potential,” “predict,” “project” or other similar words, phrases or expressions. Many of these risks and uncertainties relate to factors that are beyond Safran’s control. Therefore, investors and shareholders should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: uncertainties related in particular to the economic, financial, competitive, tax or regulatory environment; the risks that the new businesses will not be integrated successfully or that the combined company will not realize estimated cost savings and synergies; Safran’s ability to successfully implement and complete its plans and strategies and to meet its targets; the benefits from Safran’s plans and strategies being less than anticipated; the risks described in the Universal Registration Document (URD); the full impact of the outbreak of the COVID-19 pandemic.
The foregoing list of factors is not exhaustive. Forward-looking statements speak only as of the date they are made. Safran does not assume any obligation to update any public information or forward-looking statement in this document to reflect events or circumstances after the date of this document, except as may be required by applicable laws.
USE OF NON-GAAP FINANCIAL INFORMATION
This document contains supplemental non-GAAP financial information. Readers are cautioned that these measures are unaudited and not directly reflected in the Group’s financial statements as prepared under International Financial Reporting Standards and should not be considered as a substitute for GAAP financial measures. In addition, such non-GAAP financial measures may not be comparable to similarly titled information from other companies.
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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 100,000 employees and sales of 27.3 billion euros in 2024, and holds, alone or in partnership, world or regional leadership positions in its core markets.
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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