Safran (SAF) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 revenue reached €8.624 billion, up 23% organically year-over-year, driven by strong aftermarket demand and robust performance in both aerospace and defense segments.

• Aftermarket services, especially for commercial engines (CFM56 and LEAP), saw significant growth, with spare parts up 29% and services up 43%.

• LEAP engine deliveries exceeded 500 units for the third consecutive quarter, up 63% year-over-year.

• Portfolio management included the divestment of Safran Passenger Innovations and the acquisition of Syntony, a leader in resilient navigation technologies.

• New industrial investments and facilities announced to support ramp-up for Airbus and Boeing programs, including a new forging press and facilities in Morocco and Belgium.

Financial highlights

• Q1 2026 revenue: €8.624 billion, up 18.8% reported and 23% organically year-over-year.

• Currency headwinds reduced revenue by €600 million due to a less favorable euro-dollar rate; average spot rate was 1.17 in Q1 2026.

• Scope effects added 4% to revenue, mainly from the Collins acquisition and offset by divestments.

• Propulsion revenue up 33% organically; Equipment & Defense up 13.5% organically; Aircraft Interiors up 9.2% organically.

• Services revenue for civil engines (USD) up 43.1%; spare parts revenue up 29.3%.

Outlook and guidance

• Confident in reaching the high end of full-year 2026 guidance, supported by strong Q1 momentum; full-year outlook confirmed with revenue, recurring operating income, and free cash flow expected to rise low to mid-teens.

• Recurring operating income guidance: €6.1–6.2 billion; free cash flow: €4.4–4.6 billion.

• LEAP engine deliveries projected up ~15%; civil engine spare parts revenue up mid-teens; services revenue up ~20% (in $).

• No current plans to revise guidance until H1 results, despite Q1 performance being ahead of expectations; upside opportunity for revision anticipated at half-year results.

• Watch items: supply chain production capabilities and potential Middle East conflict impact.