Safran's Profit Surge: Air Traffic Boosts 2024 Results

PARIS — French aerospace and defense giant Safran has raised its full-year 2024 outlook following a strong performance driven by robust air traffic and a resilient civil aftermarket. The company's adjusted data for the year shows a 17.8% increase in revenue, a 30.1% jump in recurring operating income, and a 15.1% operating margin, reflecting its strategic focus on operational excellence and aftermarket activity.

Safran's CEO, Olivier Andriès, attributed the company's success to the efforts of its teams, despite persistent supply chain difficulties and residual inflationary pressures. The strong aftermarket activity across all divisions, relentless focus on operational excellence, and the return to profitability of Aircraft Interiors were key factors in the company's record-breaking year.

The company's civil aftermarket (in $) increased by 24.9% in 2024, supported by strong air traffic momentum and an increasing contribution of CFM flight hour contracts. This growth was further boosted by Safran's ability to offset lower LEAP engine delivery volumes with a favorable customer mix and price. The company delivered 1,407 LEAP engines in 2024, down 10% compared to 2023, but the lower volume was more than offset by the customer mix and price.

Safran's OE sales also grew by 24.5% in 2024, primarily driven by Seats, with a significant increase in Business class seat deliveries. The company's Aircraft Interiors division saw a solid 25.2% growth, although it was still 5% below 2019 levels. This growth reflects the recovery of the widebody market and airlines' eagerness for cabin retrofitting.

Looking ahead to 2025, Safran expects its revenue to increase by around 10%, with recurring operating income projected to reach €4.8 - €4.9 billion. The company plans to close the Collins' actuation and flight control activity by mid-year, propose a €2.90 dividend per share, and initiate the execution of its €5 billion share buyback program. These capital deployment strategies, along with Safran's strong financial performance in 2024, position the company well for continued profitable growth in 2025 and beyond.

In conclusion, Safran's robust 2024 results and raised outlook reflect the company's strategic focus on operational excellence and aftermarket activity, as well as its ability to adapt to market conditions and execute on its strategic initiatives. With a strong performance in the civil aftermarket and OE sales, Safran is well-positioned to continue its profitable growth in the coming years.