Safran (SAF) Q2 2026 earnings summary

Executive summary

• Record first-half performance driven by exceptional civil engine aftermarket demand, with spare parts up 27.9% in USD and services up 40.4%, and robust LEAP and M88 engine deliveries.

• 1,030 LEAP engines delivered, up 41% year-over-year, marking a record high.

• Portfolio management included divestments (Safran Passenger Innovations, EZAir JV) and acquisitions (Tikehau Capital stake in Aubert & Duval, Collins actuation and flight control activities).

• Defense segment saw strong demand, new partnerships, and major contract wins, with over 80% of electronics backlog international.

• Minimal impact from Middle East conflict, with continued commercial momentum and expanded MRO capacity globally.

Financial highlights

• Revenue reached €17,571 million, up 20.2% organically and 19% reported year-over-year.

• Recurring operating income rose 29% to €3,237 million, with a record 18.4% margin.

• Free cash flow increased 43% to €2,616 million, with EBITDA cash conversion over 80%.

• Net income attributable to parent was €1,924 million, up 21% year-over-year; EPS €4.63.

• One-off items totaled €-177 million, mainly from program impairments and M&A costs.

Outlook and guidance

• Full-year 2026 revenue guidance raised to mid-teens growth, above €36 billion.

• Recurring operating income guidance raised to €6.4–6.5 billion; free cash flow guidance raised to €4.7–4.9 billion.

• Spare parts and services revenues expected up in the mid-20s percent; LEAP deliveries up in the high teens.

• Assumptions include €/$ spot rate at 1.15, hedge rate at 1.12, and inclusion of Collins actuation business.

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