By Olivier Cherfan April 23 (Reuters) - French jet engine maker Safran on Thursday reported a stronger-than-expected rise in first-quarter revenue and said it expected to reach the high end of its
Safran flags missile propulsion growth, sees little impact from Iran war
Safran’s Financial Performance and Market Outlook
By Olivier Cherfan
April 23 (Reuters) - French jet engine maker Safran said on Thursday it expected its missile propulsion business to grow sharply over the medium term, after reporting first-quarter revenue beat and projecting earnings at the upper end of the full-year forecast.
Missile Propulsion Business Growth
Safran said in a call with analysts that missile propulsion revenue should grow about 20% in 2026 from a year earlier, with production expected to rise four- to five-fold by 2030, supported by a strong backlog and demand for missiles, seekers and guidance systems.
Impact of Middle East Conflict
The French group said the Middle East conflict had "no impact in the first quarter" and was not expected to significantly affect the second quarter, although it had driven sharp price increases in some raw materials, including cobalt and tungsten, which the group said it could absorb for now.
First-Quarter Revenue and Engine Deliveries
Safran, which also makes landing gear, brakes and cabin interiors, reported first-quarter adjusted revenue of 8.62 billion euros ($10.09 billion), up 18.8% on-year and ahead of analysts' 8.28 billion euro forecast, helped by LEAP engine deliveries rising more than 60% and strong spare-parts and services sales.
LEAP Engine Production and Partnerships
The French group co-produces LEAP jet engines for narrow-body Boeing and Airbus jetliners with GE Aerospace through their CFM International joint venture, the world's largest engine maker by units sold.
Market Share and Strategic Positioning
CEO Olivier Andriès said that CFM held about 60% of the A320neo-family order book and that Safran had no ambition to increase that share despite Pratt & Whitney's current engine-supply problems.
Analyst Commentary
"CFM is positioned to outperform on LEAP deliveries this year, as any sequential improvement off the 520 deliveries in 1Q26 would represent upside," RBC Capital Markets said in a note.
Shares rose 0.2% at 0922 GMT.
Future Revenue and Earnings Projections
Safran expects 2026 revenue to rise by a low- to mid-teens percentage, with recurring operating income of 6.1 to 6.2 billion euros and free cash flow of 4.4 to 4.6 billion euros.
($1 = 0.8546 euros)
(Reporting by Olivier Cherfan in Gdansk; Editing by Nivedita Bhattacharjee and Mrigank Dhaniwala)
