SAFRAN SA (SEJU) AI Stock Analysis

3 Followers

SAFRAN SA

(Frankfurt:SEJU)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Strong multi-year revenue growthSafran has expanded revenue substantially across its aerospace, defense, and systems businesses over several years. This scale growth indicates broadening program participation and supports greater operating leverage, installed-base monetization, and reinvestment capacity over the next several quarters.

Negative Factors

Earnings volatilityThe pronounced year-to-year swings in net results make underlying earnings power less predictable than the revenue trend. Volatility can complicate planning, reduce confidence in near-term profit conversion, and leave results more sensitive to program developments and exceptional items.

SAFRAN SA (SEJU) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 143.95B
Dividend Yield: 1.06%
Average Volume (3M): 8
Price to Earnings (P/E): 33.6
Beta (1Y): 0.90
Revenue Growth: 14.27%
EPS Growth: -9.87%
Country: Germany
Employees: 110,535
Sector: Industrials
Sector Strength: 63
Industry: Aerospace & Defense

SAFRAN SA Business Overview & Revenue Model

Company Description

Safran S.A. operates as a leading global entity within the aerospace and defense industries, conducting its business through three primary segments. The Aerospace Propulsion division is dedicated to the full lifecycle – from design and development to...

SAFRAN SA Earnings Call Summary

Earnings Call Date:Jul 28, 2026(Q2-2026)|% Change Since:-7.27%|Next Earnings Date:Feb 09, 2027

Earnings Call SentimentPositive

The call presented a strongly positive operational and financial picture: record revenue, elevated margins and exceptional free cash flow drove an upgraded full-year outlook and continued investments in capacity, R&D and defense wins. Key execution risks remain (FX headwinds, one-off charges, French surtax, timing of LEAP-1B RPFH recognition, supply-chain constraints and seats certification/cash conversion). Overall, the positives materially outweigh the outlined challenges.

Positive Updates

Record Half-Year Revenue

Revenue reached EUR 17.6 billion in H1 2026 (reported +19% YoY; organic ~+20%), driven by broad-based civil and defense momentum.

Negative Updates

Foreign Exchange Headwind

Negative currency impact of EUR 742 million on revenue (USD strengthened: average spot 1.17 vs 1.09 prior year) and recorded FX losses of EUR 188 million in financial expense.

Company Guidance

Safran raised its 2026 outlook: group revenue is now expected to grow in the mid‑teens to above €36.0bn, recurring operating income guidance was increased by €300m at the midpoint (management points to roughly €6.5bn ROP), and free cash flow guidance was also uplifted by €300m at midpoint; spare parts and services revenues are now expected to rise in the mid‑20s percentage range and LEAP deliveries are guided to grow in the high‑teens. The upgrade is underpinned by a strong H1 (revenue €17.6bn, +19% reported/>20% organic; recurring operating income €3.2bn; free cash flow €2.6bn; 1,030 LEAP deliveries in H1, +41% YoY; propulsion margin 24.5%), and management notes the higher EBIT guidance increases the estimated French corporate surtax hit to nearly €500m for the year (about €180m incremental in H2).

SAFRAN SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:SEJU against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HONA	78Outperform	$52.78B	28.30	-221.47%	―	8.36%	-32.92%
HEI	76Outperform	$40.75B	57.46	18.30%	0.04%	20.69%	31.56%
GE	71Outperform	$349.18B	39.37	50.64%	0.52%	19.62%	15.45%
RTX	71Outperform	$270.25B	32.31	12.77%	1.40%	11.63%	26.50%
HWM	68Neutral	$87.11B	43.67	36.71%	0.23%	22.02%	43.31%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

DE:SEJU and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:SEJU	Safran Sa Unsponsored Adr	76.50	0.08	0.11%
GE	Ge Aerospace	342.75	40.21	13.29%
HEI	HEICO Corporation	349.35	32.17	10.14%
RTX	Rtx Corporation	201.29	29.88	17.43%
HWM	Howmet Aerospace Inc.	224.00	23.14	11.52%
HONA	Honeywell Aerospace Inc	169.53	-30.47	-15.23%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

SAFRAN SA AI Stock Analysis