Safran sets course for higher revenue, profit by 2028

(Reuters) -French jet engine maker Safran is targeting annual revenue growth in a high single-digit percentage and a sharply higher profit by 2028, it said on Thursday ahead of its investor day event in Paris.

The aerospace supplier said it expects air traffic growth, defense budgets, production ramp-up and pricing to drive annual sales growth over the next four years.

It aims for a recurring operating income of between 6 billion and 6.5 billion euros ($6.32 billion and $6.85 billion) by 2028, with low-twenties percentage growth in the propulsion business buoyed by the transition from the CFM56 to LEAP engines.

Safran, which co-produces with GE Aerospace the LEAP engines that power flagship Boeing and Airbus planes, also confirmed its current-year targets and gave a preliminary outlook for 2025.

For next year, it forecast revenue growth of around 10%, a recurring operating income of 4.7 billion to 4.8 billion euros and a free cash flow of between 2.8 billion and 3.0 billion euros, based on estimated growth of 15% to 20% in LEAP engine deliveries.

($1 = 0.9491 euros)

(Reporting by Gianluca Lo Nostro in Gdansk and Tim Hepher in Paris Editing by Milla Nissi)