JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com -- Safran (EPA:SAF) on Friday reported stronger-than-expected revenue for the first quarter, driven by solid growth in its civil aftermarket services, sending its shares rising more than 3% in Paris trading.
The French aerospace supplier posted adjusted revenue of €7.26 billion ($8.27 billion), up 17% year-on-year on a reported basis and 14% organically, beating analyst expectations of €7.05 billion based on a company-compiled consensus.
The company’s propulsion segment led the performance, with adjusted revenue rising 19% to €3.68 billion, supported by strong demand for civil engine spare parts and services.
Safran’s equipment and defense division also posted a solid quarter, with revenue increasing 14% to €2.78 billion, helped by higher sales of nacelles, landing systems, and electronic components.
The aircraft interiors segment recorded €788 million in revenue, marking a 17% rise from the previous year.
Safran maintained its full-year outlook but noted that its forecast does not yet account for any potential impact from tariffs, which it said are still too uncertain to assess.
The company expects revenue growth of around 10% in 2025, with recurring operating income between €4.8 billion and €4.9 billion, and free cash flow of €3.0 billion to €3.2 billion.
The outlook assumes a 15–20% year-on-year increase in LEAP engine deliveries and now sees spare parts revenue rising in the low teens, slightly higher than its previous high-single-digit forecast.
"We believe the update to the company’s FY outlook is encouraging and consistent with GE Aerospace’s commentary earlier this week," RBC Capital Markets analysts said in a note.
Separately, JPMorgan analysts said they expect Safran to address three main issues on its earnings call: the potential impact of U.S. tariffs, risks to its FX hedging strategy if the EUR/USD moves past $1.15, and how it plans to recover LEAP engine deliveries after a Q1 decline to meet its full-year growth target.