{"id":62442,"date":"2026-08-07T09:36:25","date_gmt":"2026-08-07T09:36:25","guid":{"rendered":"https:\/\/www.europesays.com\/france\/62442\/"},"modified":"2026-08-07T09:36:25","modified_gmt":"2026-08-07T09:36:25","slug":"safran-sa-safrf-h1-2026-earnings-call-highlights-strong-growth-in-revenue-and-engine-deliveries","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/france\/62442\/","title":{"rendered":"Safran SA (SAFRF) (H1 2026) Earnings Call Highlights: Strong Growth in Revenue and Engine Deliveries"},"content":{"rendered":"\n

This article first appeared on GuruFocus<\/a>. <\/p>\n

Revenue: EUR17.6 billion, up 20% on an organic basis. <\/p>\n

Recurring Operating Income: EUR3.2 billion, a 29% increase, with an operating margin of 18.4%. <\/p>\n

Free Cash Flow: EUR2.6 billion, up 43% year over year. <\/p>\n

LEAP Engine Deliveries: 1,030 engines in H1, a 41% increase year over year. <\/p>\n

Net Income: EUR1.9 billion, up 21% year over year. <\/p>\n

Earnings Per Share: EUR4.63. <\/p>\n

Propulsion Revenue: EUR9.2 billion, up 28% organically. <\/p>\n

Equipment & Defense Revenue: EUR6.9 billion, up 14% organically. <\/p>\n

Aircraft Interiors Revenue: EUR1.5 billion, up 6.6% organically. <\/p>\n

Operating Margin for Propulsion: 24.5% of sales. <\/p>\n

Operating Margin for Equipment & Defense: 13.1%. <\/p>\n

Operating Margin for Aircraft Interiors: 3.7%. <\/p>\n

Spare Parts Sales for Civil Engines: Increased by 28% in dollar value. <\/p>\n

Civil Engine Services Growth: More than 40% in dollar value. <\/p>\n

Net Cash Position: EUR1.7 billion. <\/p>\n

Release Date: July 28, 2026 <\/p>\n

For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>. <\/p>\n

Positive Points <\/p>\n

Safran SA (SAFRF<\/a>) reported a 20% organic revenue increase, reaching EUR17.6 billion, with a 29% rise in recurring operating income to EUR3.2 billion. <\/p>\n

The company delivered 1,030 LEAP engines in the first half, marking a 41% year-on-year increase, and maintained strong aftermarket demand for civil engines. <\/p>\n

Free cash flow increased by 43% to EUR2.6 billion, demonstrating strong cash generation and financial performance. <\/p>\n

Safran SA (SAFRF<\/a>) raised its full-year guidance, reflecting confidence in continued strong performance across its business segments. <\/p>\n

The company is expanding its global footprint with new facilities in Mexico and Singapore, enhancing its maintenance and production capabilities. <\/p>\n

Negative Points <\/p>\n

The ongoing Middle East crisis and currency volatility posed challenges, although they were managed effectively. <\/p>\n

Despite strong performance, the company faces potential headwinds from increased material costs and geopolitical uncertainties. <\/p>\n

The French corporate surtax impacted the reported tax rate, increasing the effective tax burden on the company. <\/p>\n

Supply chain challenges affected helicopter turbine original equipment (OE) deliveries, indicating ongoing operational hurdles. <\/p>\n

The Aircraft Interiors segment, while improving, still faces challenges in achieving higher margins and cash flow positivity. <\/p>\n

Q & A Highlights <\/p>\n

Q: Can you explain the drivers behind the exceptional 24.5% margin in Propulsion, given the increase in LEAP deliveries and service sales? A: The stellar performance was driven by strong spare parts sales, particularly on CFM56 and LEAP engines, benefiting from favorable workscope mix and pricing effects. Additionally, a significant volume of spare engines was delivered, and military engines, notably the M88, performed well. The one-off in Propulsion relates to commercial discussions on past operations, with cash impacts expected at the end of this year and next year. – Pascal Bantegnie, CFO <\/p>\n

Story Continues <\/p>\n

Q: Could you provide an update on the divisional EBIT margin guidance for the full year, especially for Equipment & Defense? A: We are raising our full-year outlook. For Propulsion, the margin should be at least at the upper end of the 20% to 24% guidance, around 24%. Equipment & Defense is expected to beat the 50 basis points margin improvement, and Aircraft Interiors should see at least a one-point improvement. Defense and nacelle businesses are key contributors to margin improvement. – Pascal Bantegnie, CFO <\/p>\n

Q: The guidance upgrade for services implies a deceleration in the second half. What are the key drivers for this? A: The main driver for services growth is the increase in LEAP shop visits, which have grown by over 30% due to the expanding LEAP in-service fleet and increasing workscope. The spare parts growth was driven by a higher proportion of heavy workscope. Despite the growth, the accounting strategy for RPFH profits means no impact on profits from revenue growth in H2. – Olivier Andries, CEO <\/p>\n

Q: How do you see the evolution of workscope as we move into H2 and beyond? Will it continue to be a tailwind? A: The workscope has been driven by material availability, which has improved, creating a tailwind. We expect this trend of heavy workscope shop visits to continue for at least the next two years, through 2027 and 2028. – Olivier Andries, CEO <\/p>\n

Q: Can you update us on the LEAP OE profitability journey and the spare engine ratio expected for this year? A: LEAP OE is already profitable when combining installed and spare engines. Installed engines remain slightly EBIT negative, but spare engines are strongly positive. In H1, 60% of expected spare engine volumes were delivered, with a spare engine ratio in the low double digits, expected to normalize to 10%-12% in H2. – Pascal Bantegnie, CFO <\/p>\n

For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"This article first appeared on GuruFocus. Revenue: EUR17.6 billion, up 20% on an organic basis. Recurring Operating Income:…\n","protected":false},"author":2,"featured_media":9642,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13022],"tags":[22865,38848,38849,34572,8083,4660],"class_list":["post-62442","post","type-post","status-publish","format-standard","has-post-thumbnail","category-safran","tag-aircraft-interiors","tag-equipment-defense","tag-equipment-defense-revenue","tag-leap-engine","tag-operating-margin","tag-safran"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/62442","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/comments?post=62442"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/62442\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media\/9642"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media?parent=62442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/categories?post=62442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/tags?post=62442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}