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SAFRAN SA (SAFRY) AI Stock Analysis
SAFRAN SA
(Other OTC:SAFRY)
The score is driven primarily by solid financial performance (strong revenue growth and reliable cash generation) and a very positive earnings update with raised 2026 guidance. These are partially offset by weak technicals (downtrend vs major moving averages and negative MACD) and a premium valuation (P/E ~29.5 with a modest ~1.28% yield).
SAFRAN SA (SAFRY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $128.00B
- Dividend Yield
- 1.27%
- Average Volume (3M)
- 195.55K
- Price to Earnings (P/E)
- 29.6
- Beta (1Y)
- 0.90
- Revenue Growth
- 22.57%
- EPS Growth
- -3.89%
- Country
- US
- 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...
How the Company Makes Money
Safran makes money primarily by selling aerospace hardware and by providing long-duration services tied to that hardware. A large share of revenue comes from propulsion, where Safran earns from (1) original equipment (OE) sales of aircraft engines an...
SAFRAN SA Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Strong multi-year revenue growth and consistently positive operating/free cash flow support a solid fundamental profile. The key offset is earnings volatility (loss years mixed with very strong profit years), and the balance sheet is manageable but not conservative due to a material debt load.
Income Statement
74PositiveBalance Sheet
67PositiveCash Flow
78Positive| 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 | 5.46B | 676.00M | 4.51B | 3.79B | 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 Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAFRY, the sentiment is Negative. The current price of 76.94 is below the 20-day moving average (MA) of 85.05, below the 50-day MA of 91.59, and below the 200-day MA of 90.92, indicating a bearish trend. The MACD of -4.47 indicates Positive momentum. The RSI at 26.91 is Positive, neither overbought nor oversold. The STOCH value of 8.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAFRY.
SAFRAN SA Peers Comparison
Overall Rating
HONA78Outperform
HEI76.4Outperform
GE71Outperform
RTX71Outperform- SAFRY70Outperform
HWM68Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HONA | 78Outperform | $48.87B | 25.73 | -221.47% | ― | 8.36% | -32.92% |
| HEI | 76Outperform | $37.93B | 52.85 | 18.30% | 0.04% | 20.69% | 31.56% |
| GE | 71Outperform | $311.87B | 34.66 | 50.64% | 0.59% | 19.62% | 15.45% |
| RTX | 71Outperform | $269.62B | 32.07 | 12.77% | 1.41% | 11.63% | 26.50% |
| SAFRY | 70Outperform | $128.80B | 29.61 | 26.45% | 1.27% | 22.57% | -3.89% |
| HWM | 68Neutral | $79.22B | 38.86 | 36.71% | 0.25% | 22.02% | 43.31% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SAFRY | Safran Sa Unsponsored Adr | 76.94 | -11.76 | -13.26% | |
| GE | Ge Aerospace | 301.80 | -5.17 | -1.68% | |
| HEI | HEICO Corporation | 321.36 | 6.77 | 2.15% | |
| RTX | Rtx Corporation | 199.80 | 25.35 | 14.53% | |
| HWM | Howmet Aerospace Inc. | 199.22 | -7.09 | -3.44% | |
| HONA | Honeywell Aerospace Inc | 154.15 | -45.85 | -22.92% |
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.
Date of analysis: Oct 28, 2026