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SAFRAN SA
(OTC:SAFRY)
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Rating:74Outperform
Price Target:
$106.00
▲(3.90% Upside)
Action:Reiterated
Date:07/28/26
The score is driven primarily by solid financial performance (strong revenue growth and reliable cash generation, tempered by earnings volatility). The earnings call adds meaningful upside due to upgraded guidance and strong H1 execution. Technicals are moderately supportive over the longer term but show near-term consolidation, while valuation appears reasonable rather than distinctly cheap.
Positive Factors
Aftermarket & spare parts growth
Elevated spare-parts sales and rising shop visits indicate a structurally stronger recurring aftermarket stream. That recurring revenue is high-margin and less cyclical than new OE deliveries, supporting durable cash generation, margin resilience and long-term service relationships across the installed base.
Negative Factors
Earnings volatility
Large year-to-year profit swings reveal sensitivity to program timing, one-offs and cycle effects. Persistent volatility complicates long-term planning, weakens predictability for capital allocation and increases the chance of funding or covenant stress during industry downturns despite revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Aftermarket & spare parts growth
Elevated spare-parts sales and rising shop visits indicate a structurally stronger recurring aftermarket stream. That recurring revenue is high-margin and less cyclical than new OE deliveries, supporting durable cash generation, margin resilience and long-term service relationships across the installed base.
Read all positive factors
SAFRAN SA (SAFRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$161.89B
Dividend Yield1.04%
Average Volume (3M)49.40K
Price to Earnings (P/E)34.7
Beta (1Y)0.91
Revenue Growth22.57%
EPS Growth-3.89%
CountryUS
Employees110,535
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)2.35
Shares Outstanding1,673,378,500
10 Day Avg. Volume35,517
30 Day Avg. Volume49,395
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)8.35
Price to Sales (P/S)4.13
P/FCF Ratio28.76
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.97
Revenue Forecast (FY)$41.83B
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...
How the Company Makes Money
Safran primarily makes money by selling aerospace equipment and systems to aircraft manufacturers (OEM sales) and by earning recurring revenue from aftermarket services over the life of in-service aircraft and installed equipment. Key revenue stre...
SAFRAN SA Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 12, 2027
Earnings Call Sentiment Positive
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.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.79B | 29.96B | 27.72B | 23.65B | 19.52B | 15.13B |
| Gross Profit | 4.63B | 4.30B | 13.27B | 11.21B | 2.19B | 980.00M |
| EBITDA | 5.90B | 5.40B | 676.00M | 4.41B | 3.68B | 1.55B |
| Net Income | 3.90B | 6.89B | -667.00M | 3.44B | -2.46B | 43.00M |
Balance Sheet | ||||||
| Total Assets | 66.37B | 61.79B | 55.01B | 50.47B | 46.83B | 41.72B |
| Cash, Cash Equivalents and Short-Term Investments | 6.65B | 6.79B | 6.76B | 6.68B | 6.93B | 5.35B |
| Total Debt | 5.10B | 5.33B | 5.06B | 6.58B | 6.95B | 7.13B |
| Total Liabilities | 51.24B | 46.33B | 44.29B | 38.38B | 35.96B | 28.45B |
| Stockholders Equity | 14.51B | 14.83B | 10.18B | 11.58B | 10.41B | 12.84B |
Cash Flow | ||||||
| Free Cash Flow | 5.40B | 4.31B | 3.19B | 3.44B | 2.95B | 2.00B |
| Operating Cash Flow | 6.91B | 5.50B | 4.73B | 4.27B | 3.54B | 2.44B |
| Investing Cash Flow | -3.46B | -3.24B | -1.85B | -1.70B | -1.29B | -738.00M |
| Financing Cash Flow | -3.65B | -1.93B | -3.07B | -2.58B | -815.00M | -268.00M |
SAFRAN SA Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $267.95B | 34.36 | 11.79% | 1.43% | 11.84% | 24.93% | |
74 Outperform | $161.89B | 34.67 | 26.45% | 1.04% | 22.57% | -3.89% | |
74 Outperform | $37.33B | 51.37 | 18.30% | 0.04% | 20.69% | 31.56% | |
69 Neutral | $92.33B | 49.81 | 34.41% | 0.21% | 18.08% | 35.49% | |
67 Neutral | $347.49B | 38.19 | 49.03% | 0.51% | 21.69% | 18.42% | |
66 Neutral | $49.26B | 63.96 | -16.21% | ― | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
SAFRY
SAFRAN SA
93.61
10.64
12.82%
GE
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324.15
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15.71%
HEI
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312.49
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-2.53%
RTX
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198.12
42.78
27.54%
HWM
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227.91
44.08
23.98%
HONA
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153.75
-46.25
-23.13%
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.