French aerospace group Safran on Friday set a higher profit objective for 2026 after reporting a marked improvement in profitability in 2025, largely attributed to flourishing aftermarket activity for its civil jet engines.
For 2026 Safran forecast recurring operating profit of between 6.1 billion and 6.2 billion euros. The company said that estimate assumes revenue growth in the "low to mid teens" percentage range over the period - a figure specified in a French-language version of its earnings statement as a 12% to 15% increase.
Safran, which co-produces engines for Airbus and Boeing aircraft with GE Aerospace as part of the CFM venture, reported adjusted full-year 2025 results that showed recurring operating income rose 26% to 5.2 billion euros. The adjusted operating margin improved by 1.5 percentage points to 16.6%.
Adjusted revenue increased 15% to 31.33 billion euros in 2025, and the group generated 3.92 billion euros in free cashflow for the year.
These outcomes compared with a company-compiled analyst consensus that expected total recurring operating income of 5.22 billion euros, revenue of 31.49 billion euros and free cashflow of 3.66 billion euros.
Services revenue for Safran's civil engines grew by 30% in U.S. dollar terms, the company said. Safran attributed the boost in aftermarket sales to sustained demand for air travel and continued operation of older jets while deliveries of new aircraft remain delayed. The group also noted positive momentum in its defence activities, in part driven by new orders for the Rafale fighter, for which Safran supplies engines.
Looking further ahead, Safran raised its financial target for 2028, increasing the forecast range for recurring operating income to 7.0 billion to 7.5 billion euros. This upswing replaces the prior guidance given at an investor day in 2024, which had set a 2028 recurring operating income range of 6.0 billion to 6.5 billion euros.
The company included an exchange-rate reference in its release, noting $1 = 0.8430 euros.
Context and implications
Safran's results show a combination of stronger services demand for in-service engines and emerging defence order flow supporting margin expansion and cash generation. The upgraded 2028 profit range signals management confidence in continuing recovery and growth across its core aerospace and defence activities.