Safran, the leading French aerospace-industry supplier, has confirmed its positive outlook for the year after reporting significant revenue growth in the third quarter. The surge in air traffic for narrowbody jets has translated into a strong demand for spare parts, bolstering Safran's financial performance.
In terms of adjusted revenue, Safran posted an impressive figure of 5.83 billion euros ($6.16 billion), representing a 20% increase in reported terms and an even more impressive 26% growth organically.
The propulsion business segment saw a noteworthy climb of 23% in reported terms, reaching EUR3.08 billion. Additionally, the equipment and defense segment experienced solid growth with a 17% increase to EUR2.13 billion. The aircraft interiors business also made a significant contribution, generating EUR605 million in revenue, reflecting a 16% rise from the previous year.
According to Chief Executive Olivier Andries, Safran is benefiting from robust market conditions, particularly in terms of narrowbody air traffic. This positive trend is driving the strong demand for CFM56 spare parts. The company's primary focus remains on scaling up production while navigating the challenges of a constrained supply chain environment.
Looking ahead, Safran maintains its optimistic outlook for the year. The company expects to achieve adjusted revenue of at least EUR23 billion, an adjusted recurring operating income of approximately EUR3.1 billion, and free cash flow of at least EUR2.7 billion.