By Pierre Bertrand


Safran anticipates further growth and profitability after unveiling targets for next year and 2028.

On a preliminary basis, the French aerospace-industry supplier said it is targeting recurring operating income next year between 4.7 billion and 4.8 billion euros ($4.94 billion-$5.05 billion), on revenue expected to grow around 10%.

The company on Thursday confirmed its outlook for 2024 of recurring operating income at around 4.1 billion euros.

By 2028, recurring operating income should reach 6.0 billion to 6.5 billion euros, the company said, adding that revenue growth over the 2024-2028 period ought to reach a high-single digit compound annual growth rate.

This revenue increase will be driven by air traffic growth, defense budgets, production ramp and pricing, the company said.

Safran also said it intends to return about 70% of its cash generation to shareholders in the form of a 40% dividend payout and a 5 billion euro share buyback from 2025 to 2028.

"Our 2028 financial ambition reflects our confidence in sustained value creation, driven by the ramp-up for both original equipment and maintenance, repair and overhaul markets, the smooth aftermarket transition from [engine types] CFM56 to LEAP, and the profitable growth trajectory for both equipment and defense and aircraft interiors," Chief Executive Olivier Andries said.


Write to Pierre Bertrand at pierre.bertrand@wsj.com


(END) Dow Jones Newswires

12-05-24 0300ET