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olivLaw · European equity research

Safran SAF.PA

France · Euronext Paris · ISIN FR0000073272 · Vertical: Listed companies from France

297.60EUR+1.74% · 1 dayClose 05 Nov 2026

Safran designs, develops and manufactures engines, equipment and systems for civil aviation and defence, with a strong position in propulsion and aftermarket services. For fiscal 2025 the group reported adjusted revenue of 31.329 bn EUR, and its recent acquisitions and growing installed base make it an important reference for the European aerospace sector.

At the close of 05 Nov 2026, Safran (SAF.PA) stock was 297.60 EUR (+1.74% on the day), with market capitalisation 124.4 bn EUR, P/E 17.3 on diluted EPS of 17.17 EUR over the last 12 months, dividend yield 0.97%, beta 1.31, 52-week range 265.20–363.60 EUR.

Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.

Market cap
124.4 bn EUR
shares as of 31 Dec 2025
P/E (TTM)
17.3
Diluted EPS TTM 17.17 · TTM to 31 Dec 2025
E/P (TTM)
5.77%
TTM to 31 Dec 2025
Dividend yield
0.97%
DPS 12m 2.90
Beta (2y)
1.31
Volatility (1y) 35%
52-week range
265.20363.60

Price history

Loading chart…

Technical reading

RSI (14)
47.3
neutral
Bollinger (20, 2)
261.97 – 332.73
in the upper half of the band · %B 0.50 · band width 23.8%
SMA 50 / 200
317.41 / 315.93
mixed trend
MACD (12, 26, 9)
-10.13 / -11.45
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyEURO STOXX 50vs EURO STOXX 50Vertical median
1 month−9.7%−0.6%−9.0 pp—
3 months−16.2%−4.2%−12.0 pp—
6 months+0.9%+4.3%−3.4 pp—
Year to date+0.1%+7.5%−7.4 pp—
1 year−3.0%+9.9%−13.0 pp−6.8%
3 years+98.4%+49.8%+48.6 pp−15.9%
5 years+147.3%+42.8%+104.4 pp—
Max drawdown (1y)
−25.2%
12 Aug 2026 → 23 Oct 2026
Max drawdown (5y)
−28.2%
10 Nov 2021 → 13 Jun 2022
Compound annual growth (5y)
+19.8%
EURO STOXX 50 +7.4%

Price returns, dividends excluded.

Quarterly results

ESEF annual reports carry no quarters: the results are annual (below).

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 100 percentile of its own 1-quarter history (min 17.3, median 17.3, max 17.3; quarters with earnings only).

Fiscal years

Fiscal year202320242025
Revenue23.7 bn28.2 bn31.7 bn
Revenue YoYunavailable+19.0%+12.4%
Net income3.4 bn-667.0 m7.2 bn
Net income YoYunavailable−119.4%unavailable
Diluted EPS-8.07-1.6017.17
Diluted EPS YoYunavailableunavailableunavailable
net %14.6%-2.4%22.7%
Free cash flowunavailableunavailableunavailable

Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
6.8 bn EUR
Financial debt
unavailable EUR
Net debt
unavailable EUR
Equity
15.5 bn EUR
Total assets
61.8 bn EUR
Debt / equity
unavailable
Current ratio
unavailable
ROE
54.8%
ROA
12.3%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (EUR)

Margins

Income statement · EUR

Revenue
2023
23.7 bn
2024
28.2 bn
2025
31.7 bn

esef· 07 Apr 2026verified

Operating income
2023
2.8 bn
2024
4.2 bn
2025
—

esef· 15 Apr 2025verified

Pre-tax income
2023
4.8 bn
2024
-859.0 m
2025
10.3 bn

esef· 07 Apr 2026verified

Income tax
2023
1.2 bn
2024
-284.0 m
2025
3.0 bn

esef· 07 Apr 2026verified

Net income
2023
3.4 bn
2024
-667.0 m
2025
7.2 bn

esef· 07 Apr 2026verified

Diluted EPS
2023
-8.07
2024
-1.60
2025
17.17

esef· 07 Apr 2026verified

Dividend per share
2023
—
2024
—
2025
2.90

esef· 07 Apr 2026verified

Balance sheet · EUR

Cash
2023
6.7 bn
2024
6.5 bn
2025
6.8 bn

esef· 07 Apr 2026verified

Receivables
2023
9.4 bn
2024
10.6 bn
2025
14.2 bn

esef· 07 Apr 2026verified

Inventories
2023
7.9 bn
2024
9.5 bn
2025
10.3 bn

esef· 07 Apr 2026verified

Current assets
2023
29.2 bn
2024
31.5 bn
2025
—

esef· 15 Apr 2025verified

Property, plant & equipment, net
2023
4.1 bn
2024
4.6 bn
2025
5.4 bn

esef· 07 Apr 2026verified

Goodwill
2023
4.7 bn
2024
4.9 bn
2025
5.8 bn

esef· 07 Apr 2026verified

Intangibles (excl. goodwill)
2023
7.8 bn
2024
7.9 bn
2025
7.5 bn

esef· 07 Apr 2026verified

Total assets
2023
50.5 bn
2024
55.0 bn
2025
61.8 bn

esef· 07 Apr 2026verified

Accounts payable
2023
8.1 bn
2024
9.8 bn
2025
13.4 bn

esef· 07 Apr 2026verified

Current liabilities
2023
30.8 bn
2024
37.4 bn
2025
—

esef· 15 Apr 2025verified

Equity
2023
12.1 bn
2024
10.7 bn
2025
15.5 bn

esef· 07 Apr 2026verified

Shares outstanding at year end
2023
418.0 m
2024
416.9 m
2025
418.0 m

esef· 07 Apr 2026derived

Cash flow · EUR

Operating cash flow
2023
4.3 bn
2024
4.7 bn
2025
5.7 bn

esef· 07 Apr 2026verified

Investing cash flow
2023
-1.7 bn
2024
-1.8 bn
2025
-3.4 bn

esef· 07 Apr 2026verified

Financing cash flow
2023
-2.6 bn
2024
-3.1 bn
2025
-2.0 bn

esef· 07 Apr 2026verified

Computed indicators

Growth

Revenue growth (YoY)
12.4%
computed by olivLawFY 2025
Revenue CAGR 3Y
unavailable
input data missing
Revenue CAGR 5Y
unavailable
input data missing
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
input data missing
Net income CAGR 5Y
unavailable
input data missing
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
input data missing
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
unavailable
input data missing

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
unavailable
input data missing
EBIT margin
13.2%
computed by olivLawFY 2025
Net margin
22.7%
computed by olivLawFY 2025
FCF margin
unavailable
input data missing

Returns

ROE
57.4%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROA
12.3%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
16.9%
computed by olivLawFY 2025
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
unavailable
input data missing
Quick ratio
unavailable
input data missing
Cash ratio
unavailable
input data missing

Cash

Operating cash flow
5.7 bn EUR
computed by olivLawFY 2025
Capital expenditure
unavailable
input data missing
Free cash flow
unavailable
input data missing
FCF conversion
unavailable
input data missing
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
143 days
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
124.4 bn EUR
computed by olivLawbalance sheet at 31 Dec 2025
Enterprise value
unavailable
input data missing
Market cap / net income TTM
17.3x
computed by olivLawFY 2025
P/E (TTM)
17.3x
computed by olivLawFY 2025
Earnings yield
5.8%
computed by olivLawFY 2025
P/B
8.4x
computed by olivLawbalance sheet at 31 Dec 2025
P/S
3.9x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
unavailable
input data missing
FCF yield
unavailable
input data missing
Dividend yield
1.0%
computed by olivLawFY 2025
Shareholder yield (distributions)
unavailable
input data missing

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • indicators available: 2 of at least 6
  • score weight coverage: 16.7% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

297.60 EUR

05 Nov 2026Source: olivLaw, closing series

Market cap: 124.4 bn EUR

Key indicators

Market capitalisation
124.4 bn EUR
computed by olivLawbalance sheet at 31 Dec 2025
P/E (TTM)
17.3x
computed by olivLawFY 2025
P/B
8.4x
computed by olivLawbalance sheet at 31 Dec 2025
EV/EBITDA
unavailable
input data missing
ROE
57.4%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Net margin
22.7%
computed by olivLawFY 2025
Revenue growth (YoY)
12.4%
computed by olivLawFY 2025
Dividend yield
1.0%
computed by olivLawFY 2025

Coverage and freshness

22/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 31 Dec 2025
Latest balance sheet date: 31 Dec 2025
Share count (cover of the latest filing), as of: 31 Dec 2025
Source: esefpublished 07 Apr 2026
verified 66derived 3

Score by group

17% · Insufficient data

Estimated value range

Low
190.44
EUR per share
Mid
294.13
EUR per share
High
511.68
EUR per share
Price: 297.60 EUR
The price is within the range
Potential to the central value: -1.2% (value / price − 1)
Margin of safety: -1.2% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 190.44 – 511.68 EUR.

Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (EUR per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/E190.44 – 511.68 (Mid 294.13)
    20 companies used · median multiple 17.1x · quartiles 11.1x – 29.8x
    74SW.PA, ABEO.PA, AC.PA, ADP.PA, AF.PA, AI.PA, ALBON.PA, ALCIS.PA, ALCLA.PA, ALFER.PA, ALHEX.PA, ALO.PA, ALPWG.PA, ALSOG.PA, ANTIN.PA, ARAMI.PA, ATE.PA, AUB.PA, AURE.PA, BB.PA
  • Dividend discount (DDM)outside the aggregate39.44 – 53.78 (Mid 45.51)
    a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate

Assumptions (illustrative, editorial)

Risk-free rate
3.0%
Equity risk premium
5.5%
Beta (default)
1.00
Cost of equity
8.5%
Terminal growth
2.0%

Factor scorecard

Insufficient data

Minimum-evidence gate: indicators available: 2 of at least 6; score weight coverage: 16.7% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality22.7%95 (vs peers)38%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growthunavailableunavailable—
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheetunavailableunavailable—
P/E (TTM) · Valuation17.3x57 (vs peers)63%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuationunavailableunavailable—
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partialunavailable · 0/3 factors with a value
  • Growth· partialunavailable · 0/2 factors with a value
  • Quality· partial95/100 · 1/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation· partial57/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

SAFRAN (SAF.PA). Latest full fiscal year: 2025; data up to 2025-12-31.

Figures computed from the financial statements: revenue 31.7 bn EUR in 2025; YoY growth 12.4%; net margin 22.7%; ROE 57.4%.

The estimated value range is 190.44–511.68 EUR per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 294.13 EUR, the price of 297.60 EUR leaves a potential of -1.2% (value / price − 1) and a margin of safety of -1.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (indicators available: 2 of at least 6; score weight coverage: 16.7% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 22.7%

What contradicts it

No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.

Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, Current ratio, EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Listed companies from France · same country · compared with 39 companies

Multiples and returns vs the median

P/E
17.3x
vertical median 18.3x
below median (−5.1%)
EV/EBITDA
—
vertical median 6.3x
P/S
3.9x
vertical median 0.5x
above median (+667.7%)
P/B
8.4x
vertical median 1.1x
above median (+694.2%)
ROE
57.4%
vertical median 4.2%
above median (+1,281.1%)
Net margin
22.7%
vertical median 1.1%
above median (+1,911.7%)
EBIT margin
13.2%
vertical median 3.2%
above median (+317.0%)
Revenue YoY
12.4%
vertical median 0.6%
above median (+2,013.1%)
Net debt/EBITDA
—
vertical median -1.2x
Dividend yield
1.0%
vertical median 1.7%
below median (−42.7%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
SAF.PASafran124.4 bn17.357.4%22.7%+12.4%+3% / +85%
AI.PAL'air Liquide Societe Anonyme Pour L'etude Et L'exploitation Des Procedes Georges Claude109.3 bn33.212.9%12.2%−2.0%+26% / +32%
AC.PAAccor13.8 bn30.79.6%8.0%+0.6%+6% / +56%
ADP.PAAeroports De Paris11.7 bn34.17.8%5.6%+12.1%−7% / +4%
AKE.PAArkema7.1 bn115.40.9%0.7%−5.0%+12% / −37%
ALO.PAAlstom5.8 bn18.33.1%1.7%+3.7%−51% / −4%
AF.PAAir France - Klm4.3 bn13.6—1.0%+4.8%+20% / +9%
ATE.PAAlten3.1 bn29.54.8%2.6%−1.1%+33% / −29%
BB.PASociete Bic2.7 bn31.35.0%4.1%−4.8%+32% / +5%
ANTIN.PAAntin Infrastructure Partners1.4 bn13.021.9%36.6%−8.1%−24% / −35%
74SW.PA74software792.7 m20.98.9%8.5%+44.8%−13% / +41%
AUB.PAAubay667.4 m17.813.6%6.3%+11.3%+3% / +45%
ASY.PAAssystem507.1 m69.92.5%1.1%+7.4%−19% / −18%
ATO.PAAtos Se483.0 m—-23,400.0%-17.5%−16.5%−45% / −94%
ARAMI.PAAramis Group298.8 m15.010.0%0.8%+6.3%−33% / −16%
ARVEN.PAArverne Group246.1 m—-14.0%-115.3%+27.0%+20% / −35%
BGO.PACompagnie Chargeurs Invest189.4 m—-8.6%-5.7%−2.9%unavailable / unavailable
ALCIS.PACatering International & Services145.0 m28.49.3%1.9%+5.8%+39% / +107%
ALCGM.PACegedim144.6 m—-2.6%-1.2%+10.9%−26% / −49%
ATEME.PAAteme144.0 m151.32.8%1.0%+2.2%+82% / +77%
ALHEX.PAHexaom144.0 m6.79.9%2.2%+13.1%−32% / +7%
ALBON.PACompagnie Lebon111.7 m16.54.2%8.8%−17.9%+6% / +8%
ALHYF.PALhyfe75.8 m—-33.4%-570.5%+287.2%unavailable / unavailable
ALFER.PASergeferrari Group61.5 m11.55.1%1.5%+7.4%−33% / −27%
ABEO.PAAbeo60.8 m7.36.9%3.0%+12.6%−13% / −54%

1- and 3-year price returns: for SAF.PA from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (EUR)

Estimated priceBearBaseBull
1 years
189.94
Total return -35% · Per year -35%
334.62
Total return 14% · Per year 14%
502.40
Total return 70% · Per year 70%
3 years
214.93
Total return -25% · Per year -9%
423.04
Total return 46% · Per year 13%
692.91
Total return 138% · Per year 33%
5 years
243.21
Total return -14% · Per year -3%
534.83
Total return 87% · Per year 13%
955.65
Total return 230% · Per year 27%
What moves the 3-year price the most
  • Exit P/E± 105.76
  • Net margin± 74.03
  • Annual revenue growth± 56.47
  • Annual dilution± 6.22

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Safran designs, develops and manufactures engines, equipment and systems for civil aviation and defence, with a strong position in propulsion and aftermarket services. For fiscal 2025 the group reported adjusted revenue of 31.329 bn EUR, and its recent acquisitions and growing installed base make it an important reference for the European aerospace sector 1.

SWOT

Strengths

  • Strong position in civil propulsion, with the LEAP programme and aftermarket activities generating recurring revenue. Rising operating margin and a diversified portfolio across three divisions.
  • Global industrial presence, with new sites inaugurated in 2025 and expanded production capacity for long-term programmes.
  • Access to funding through confirmed credit lines and a commercial paper programme, which supports liquidity management.

Weaknesses

  • Dependence on a few major programmes and on partner GE Aerospace for certain engines, which limits strategic flexibility.
  • Significant foreign exchange exposure to the US dollar, since a large part of revenue is invoiced in this currency.
  • Reported results are influenced by complex accounting adjustments, which can make direct comparison harder for external investors.

Opportunities

  • Continued growth in air traffic could support demand for services and spare parts over the long term.
  • Demand for defence systems and space equipment could increase if government programmes expand.
  • Development of low-consumption engines and electric technologies could open new markets in the next generation of aircraft.

Threats

  • Trade tensions and customs duties could affect costs and margins, particularly for activities with cross-border supply chains.
  • Competition from large groups and emerging manufacturers could reduce market share in certain segments.
  • Limited availability of sustainable aviation fuels could delay the industry's decarbonisation targets.

Risks

  • Technological and decarbonisation riskshigh

    Choices in emerging technologies could prove less relevant over the long term, and competitors could launch more capable products. This could affect the group's activity and results.

  • Foreign exchange riskhigh

    Exposure to the US dollar could affect operating results if exchange rates move differently from expectations, even though the group uses hedging strategies.

  • Customer counterparty riskmedium

    Some customers, such as airlines, could face financial difficulties and delay payments or cancel orders, affecting cash flows.

  • Sales-related guaranteesmedium

    Financial commitments supporting engine sales could expose the group to losses if airlines fail to meet their obligations or if the second-hand aircraft market weakens.

  • Compliance and regulationlow

    The group is subject to multiple regulations on competition, corruption, export controls and sanctions. Potential non-compliance could lead to penalties and harm its reputation.

Investment thesis

What would need to be true (bull case)

  • If air traffic and service activity keep growing, recurring revenue could support group results and operating margins.
  • Record LEAP engine deliveries and the position in propulsion could strengthen the long-term competitive advantage.
  • Diversification across three divisions and defence demand could reduce reliance on a single segment.

What would break the thesis

  • If trade tensions and customs duties intensify, costs and margins could be hit harder than currently anticipated.
  • Failure of some decarbonisation technologies or delays in sustainable fuel availability could slow growth.
  • Currency exposure and the complexity of accounting adjustments could make results harder to interpret and more volatile.

What to watch

  • Evolution of adjusted revenue and operating marginQ1 2027
  • LEAP engine deliveries and aftermarket service volumes2027
  • Impact of customs duties on costs and margins2027
  • Progress of the RISE project and decarbonisation technologiesnext annual report

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Safran is an international aerospace and defence group headquartered in Paris, organised into three divisions: Propulsion, Equipment and Defence, and Aircraft Interiors. Its activity combines series production with a large volume of services for the existing fleet, which provides part of its revenue on a long-term recurring basis 1.

The adjusted figures reported by the company aim to reflect economic performance by restating the effects of acquisitions and foreign exchange derivatives. Adjusted indicators such as revenue and recurring operating income are the measures management uses for comparison with competitors 1.

During 2025 the group inaugurated several industrial and maintenance sites, including a global LEAP maintenance centre in Hyderabad, a new compressor blade plant in Belgium and an aeronautical electrical systems site in Singapore. These investments support production capacity for long-term programmes 1.

Segments

Propulsion

The Propulsion division grew 17.6 % organically in 2025, supported by civil engine aftermarket activities and record LEAP deliveries. The division's operating margin was 23 % of revenue, up 240 basis points 1.

Market context

The reference market is civil air traffic, particularly long-haul traffic, which has returned above pre-pandemic levels, and the installed fleet, which generates demand for services. The company points to solid traffic and a low aircraft retirement rate, factors that support aftermarket activity 1.

An important part of demand also comes from defence, where the M88 engine and missile systems benefit from high order backlogs, including from export customers. The defence market, however, depends on government budgets and state procurement decisions 1.

Trends

  • Growth in air traffic and the installed fleettailwind

    Robust air traffic and low aircraft retirement rates led to higher demand for spare parts and services than initially expected. If this trend persists, aftermarket activities could remain a major driver of results.

  • Higher demand for defencetailwind

    The geopolitical context has increased volumes for defence equipment and navigation and missile systems. This could support growth in the Equipment and Defence division, provided government budgets remain stable.

  • Impact of customs dutiesheadwind

    Customs duties weighed on the group's recurring operating income in 2025 even as volumes grew. Changes in trade policy could affect costs and margins, especially for activities with international supply chains.

  • Decarbonisation of aviationmixed

    The shift towards sustainable fuels and low-consumption technologies is both a development opportunity and a technological risk. Results could depend on the success of new engine programmes and on the availability of sustainable fuels, which remain uncertain.

Competitive position

Safran competes in engines and systems with large aerospace groups such as GE Aerospace and RTX, as well as with European and Asian component manufacturers. In propulsion its position rests on the LEAP programme, developed with GE Aerospace, and on associated services.

In equipment and interiors, the group faces specialist suppliers of landing gear, cabin systems and defence electronics. Its advantage lies in a broad portfolio and global presence, but competitive pressure remains high in some niches.

  • GE AerospaceGE

    Partner in the LEAP programme and the RISE project, and also a direct competitor in propulsion and civil engine services.

  • RTXRTX

    Aerospace and defence group with activities competing in engines, cabin systems and civil fleet services.

  • Rolls-Royce

    British aero-engine manufacturer competing in civil and military propulsion.

  • MTU Aero Engines

    German engine component and service provider active in the same aftermarket segments.

News & filings

Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.