(AOF) - Driven by sustained momentum in defense, the aerospace equipment manufacturer (+7.39% at 330.40 euros) led the CAC 40 index in the wake of its annual performance. Adjusted net income, Group share, reached 3,174 million euros, up 3.45% year-on-year. Earnings per share stood at 7.60 euros, compared to 7.37 euros in 2024, marking a 3.12% increase.

Meanwhile, revenue came in at 31,329 million euros, up 14.7% from 2024. This growth was fueled by the strong recovery in air traffic, particularly dynamic aftermarket activity (+21.0% for civil engine services), and record production of LEAP engines (1,802 units, +28%).

EBITDA rose by 16.63% to 6,318 million euros, compared to 5,417 million euros a year earlier. Adjusted recurring operating income amounted to 5,197 million euros, up 26%, bringing the margin to 16.6% of revenue, an improvement of 150 basis points compared to 2024 (15.1%).

Free cash flow exceeded expectations at 3,921 million euros, up 23% compared to the 3,189 million euros generated in 2024. This performance is explained by robust operating cash flow, effective working capital management (+1,070 million euros), and this despite an increase in investments to 1,800 million euros, versus 1,543 million euros in 2024.

"2025 was a remarkable year for our businesses, driven by record passenger traffic and sustained momentum in defense," said Olivier Andrés, CEO of Safran. "The operating margin improved by 150 basis points to 16.6% of revenue, and cash generation reached 3.9 billion euros, even as significant investments [...] were made," summarized the executive.

For fiscal year 2026, Safran is targeting revenue growth between 12% and 15%, recurring operating income between 6.1 and 6.2 billion euros, and free cash flow between 4.4 and 4.6 billion euros, factoring in an estimated negative impact of 470 million euros related to the exceptional corporate tax contribution.

The group has significantly raised its 2028 targets: average annual revenue growth now expected at around 10% (versus 7-9% previously), recurring operating income forecast between 7.0 and 7.5 billion euros (versus 6.0 to 6.5 billion euros), and cumulative free cash flow of about 21 billion euros over 2024-2028 (versus 15 to 17 billion euros previously).

Analysts Remain Confident in the Stock

Berenberg confirmed its "buy" rating on the stock following these results, with an unchanged price target of 350 euros. The broker considers the data broadly in line for revenue and EBIT, and notes that FCF is 7% above expectations, supported by customer advances, offsetting operational performance deemed in line with the market's high expectations.

For its part, Oddo BHF maintains its "neutral" rating with an unchanged price target of 285 euros. While the analyst indicates a preference for Rolls-Royce in the sector, he notes that Safran remains "a quality stock" benefiting from an estimated 2024-2028 EPS CAGR of around 17% and an attractive yield for shareholders.

Jefferies also reiterates its "buy" rating on Safran, with an unchanged price target of 360 euros, highlighting results in line with expectations and a positive surprise on cash flow. The note emphasizes the upward revision of 2028 targets, with recurring operating income expected between 7 and 7.5 billion euros and cumulative free cash flow for 2024-2028 of about 21 billion euros, described as "a key positive driver."

Finally, Saïma Hussain, who covers the stock for AlphaValue, also mentions results "broadly in line with expectations" and highlights the 2026 forecasts, which "demonstrate the continued strength of the civil aftermarket and defense markets." Overall, "solid execution, strong cash generation, and raised medium-term ambitions should support further upward revisions; we expect a positive market reaction," she concludes.