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Safran, a jet engine manufacturer, raises its targets after a record-breaking first-half profit

French jet engine maker Safran joined its partner ?GE Aerospace in raising financial targets after ?posting stronger-than-expected first-half profits on Tuesday.

The French company said that strong demand for spares contributed to a first-half operating profit margin record of 18.4%.

CFM, which is the largest jet engine manufacturer in the world by?numbers of units sold?, reaps maintenance profits on its CFM56 engines. These engines continue to power thousands planes, even though they have been replaced by the more recent LEAP jet engine for current narrow body deliveries.

Safran's mid-year operating profit increased 29% to EUR3.24 billion ($3.68 billion), and revenue grew 19% to EUR17.57 milliards. Widely watched sales of'spare parts for Civil Engines rose 27.9% in dollars.

Analysts expected an average operating profit of EUR3,06 billion on revenues of EUR17.47billion.

Safran's core Propulsion Division, which accounts for just over half of the company's revenue, saw its earnings rise by 28% to EUR2.25billion, while Equipment & Defense grew 29% to EUR907m.

Aircraft Interiors has continued its gradual turnaround, with a profit of EUR54million up from EUR27million.

Safran has raised its "percentage target" for full-year revenue to "mid-teens", up from "low-to mid-teens".

Safran also forecast a full-year operating loss of EUR6.4 billion?to EUR6.5billion, up from an earlier goal?of EUR6.1billion to EUR6.2billion. It also raised its projection for growth in LEAP engines deliveries from a prior?target?of 15% to the "high 'teens".

GE Aerospace raised its revenue and profit estimates for 2026 last week, driven by the demand for engine equipment and services.

(source: Reuters)