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Revenue: 31.3 billion, up 14.7% year-over-year.

Organic Growth: 14.8% organic growth in revenue.

Operating Margin: Improved by 150 basis points to 16.6% of sales.

Net Income: 3.2 billion, up 3% year-over-year.

Earnings Per Share (EPS): 7.6 per share.

Free Cash Flow: 3.9 billion, up 23% year-over-year.

Propulsion Revenue: 15.7 billion, 17.6% organic increase.

Equipment and Defense Revenue: 12.3 billion, 11% organic growth.

Aircraft Interiors Revenue: 3.3 billion, 14% increase.

Recurring Operating Income: 5.2 billion, more than 1 billion higher than last year.

Dividend Proposal: 3.35 per share, up 16% year-over-year.

Engine Deliveries: 1,802 LEAP engines, 28% growth compared to 2024.

Order Intake in Defense Electronics: Record level with a 1.6 book-to-bill ratio.

Cash Conversion Ratio: 75% EBITDA to cash conversion.

Share Buyback: 5.1 million shares bought back for 1.3 billion.

Release Date: February 13, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Safran SA (SAFRF) delivered record financial results in 2025, with a 14.8% organic revenue growth and a 28% increase in engine deliveries.

The company achieved a significant improvement in operating margins, up by 150 basis points, reaching 16.6% of sales.

Free cash flow increased by 23% to 3.9 billion, with a strong EBITDA growth and positive working capital changes.

Safran SA (SAFRF) secured new contracts and strategic partnerships, including a major export contract with the Indian Navy and a material service agreement with Ryanair.

The defense and space segment showed strong performance, with a record order intake and a 1.6 book-to-bill ratio, driven by high demand for military propulsion and defense electronics.

Negative Points

The company faced challenges from a volatile foreign exchange environment, with the weakening dollar impacting financial results.

There were significant one-off items totaling 479 million, including capital losses from divestments and impairment charges.

Safran SA (SAFRF) continues to deal with supply chain challenges, particularly in raw materials, forging, and casting.

The French corporate surtax had a substantial impact on the company’s tax rate, affecting earnings per share.

Despite strong performance, the company anticipates potential risks in the wide-body aircraft market due to certification challenges and rising expectations.

Q & A Highlights

Q: Can you explain the cash conversion expectations for 2028 and whether there is a phasing on cash related to prepayment outflows? A: We have upgraded our 2024-2028 cumulative free cash flow guidance to 21 billion, which implies a cash conversion slightly below 70% in the outer years. We haven’t included any impact from a potential continuation of the French corporate surtax for 2027 and 2028, which could be half a billion each year. Additionally, we haven’t factored in new RA advance payments from new contracts. The free cash flow upgrade is due to upward revisions in aftermarket and Leap engine deliveries. The working capital expectations include a decrease in inventory DSOs starting in 2025 and continuing forward.

Q: What is the timeline for the rate 75 capacity you’re putting online, and can we assume propulsion margins will be at the high end of the range? A: We are investing to prepare for rate 75, but it’s not up to us to comment on when Airbus will be ready to reach rate 75 full year. Our new assembly line in Morocco will be ready by 2028. Regarding propulsion margins, we expect margin expansion at the group level and in all branches, including propulsion, which started at 23% this year. We anticipate continued margin growth in propulsion, equipment, and defense, and aircraft interiors despite divestments.

Q: Given the strength of the free cash flow upgrade, will you accelerate the existing buyback, and how are you thinking about capital allocation? A: There is no need to change our capital allocation policy. We maintain a 40% payout dividend policy and are executing a 5 billion share buyback program. In 2025, we executed a quarter of that program, and we expect to execute another quarter in 2026. We can adjust the speed of the program as needed, but there is no reason to change it as long as it remains in force.

Q: How do you expect the proportion of light scope events to evolve with the durability kit for Leap 1A and 1B, and what does this mean for free cash flow? A: The durability kits increase the intervals between shop visits, which is positive for us as it increases engine maturity. Most of our contracts are RPFH, so fewer early shop visits mean less spending. The mix will evolve favorably, benefiting EBIT and free cash flow, and this is already factored into our 2028 guidance.

Q: Can you provide an overview of the supply chain situation and the propulsion margin swing factors? A: We see an improvement in the supply chain, though challenges remain, particularly with raw materials, forging, and casting. We are investing in our own facilities to reduce dependency. For propulsion margins, key drivers include the number of installed engines, spare engine ratios, aftermarket strength, and profit release on Leap RPFH contracts. We aim to avoid any margin dips and expect to release more profits post-2030.

Q: What are the expectations for CFM56 shop visits post-2028, and how will pricing and scope offset declines? A: We expect CFM56 shop visits to remain at peak levels of 2,300-2,400 until 2028. The dynamic post-2028 will depend on factors like Airbus and Boeing’s production rates, aircraft retirement levels, and traffic growth. Pricing and work scope will support CFM56 revenues through the decade.

Q: Can you update us on the progress of divesting legacy Zodiac assets and the 2026 FX assumption? A: We’ve divested assets like Safran Passenger Innovation and EA, representing a few percentage points of the Zodiac portfolio. We aim to continue divesting in 2026, focusing on performance recovery first. The 2026 FX assumption of $1.15 per EUR was based on the rate when we built our budget, though it’s currently at $1.18.

Q: How does the margin differential between time and materials versus services contracts compare for wide-body engines? A: Generally, there is a similar margin differential for wide-body engines as seen with narrow-body engines like the Leap.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.