Safran

Note: This is a daily stock update and the information stands true as of 14/02/25, 09:00 CET.

Company update:
Revenue +18% to €27.3bn, slightly above forecasts, driven by Propulsion (+15% yoy) despite weaker LEAP deliveries, thanks to stronger pricing.
• Operating margin at 15.1% (+150bps) met expectations, with notable gains in Equipment & Defense.
• FCF beat the consensus by 6% at €3.19bn; dividend was up 32% yoy to €2.90 (above our €2.7 estimate).
 
Guidance 25 raised with operating income now seen at €4.8-4.9bn (vs. €4.7-4.8bn) and FCF at €3-3.2bn (vs. €2.8-3bn).

Expert opinion: 
We expect momentum to remain strong. Recent comments by President Trump confirm that there will be pressure by the US for NATO allies to sharply increase their purchase of military equipment over the long run. Even if the Russia Ukraine war were to come to an end, we believe that the trend for more demand in military equipment will remain unchanged. Note that the US are requesting that allies buy more rom US military sources. BAE and RheinMetall have substantial production capacity in the US which may be a relatively favorable item.

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