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Safran sets course for higher revenue, profit by 2028
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(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.
(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)
Operating income is the profit a company makes from its core business operations, excluding any income derived from non-operating activities such as investments or sales of assets.
Revenue growth refers to the increase in a company's sales over a specific period, often expressed as a percentage. It indicates how well a company is performing in generating sales.
Free cash flow is the cash a company generates after accounting for capital expenditures. It is an important measure of financial performance and liquidity.
Recurring operating income is the income generated from a company's regular business operations, excluding one-time gains or losses, providing a clearer picture of ongoing profitability.
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