Safran Stock Gains On FY25 Profit, Dividend Hike, Positive FY26 View; FY28 Outlook Upgrade

(RTTNews) - Shares of Safran SA (SAFRF.PK, SAF.PA) were gaining around 7 percent on the Paris Stock exchange, after the French aircraft equipment manufacturer reported Friday a consolidated profit in fiscal 2025, compared to prior year's loss, amid increased revenues. Further, the firm raised dividend, and issued fiscal 2026 outlook, expecting growth. The company also raised profit outlook for fiscal 2028.

In fiscal 2025, consolidated net income (Group share) was 7.18 billion, compared to prior year's loss of 667 million euros.

Earnings per share were 17.17 euros, compared with loss of 1.60 euros in 2024.

Adjusted net income (Group share) increased 3 percent to 3.17 billion euros from last year's 3.07 billion euros. Adjusted earnings per share were 7.60 euros, higher than 7.29 euros last year.

The consolidated recurring operating income for 2025 was 4.79 billion euros, or 15.3 percent of revenue, up 14.4 percent from 4.19 billion euros or 15.1 percent of revenue last year.

Adjusted recurring operating income reached 5.20 billion euros, a 26.2 percent year-over -year increase, driven by robust aftermarket activities and volume growth, and despite the impact from tariffs.

Adjusted recurring operating margin stood at 16.6 percent, up 150 basis points from lat year's 15.1 percent.

Consolidated revenue for 2025 grew 12.5 percent to 31.19 billion euros from last year's 27.72 billion euros, mainly driven by higher deliveries and robust aftermarket activities.

Adjusted revenue stood at 31.329 billion euros, up 14.7 percent compared to 2024. adjusted revenue growth was 14.8 percent organically.

In the fourth quarter, adjusted revenue climbed 14.1 percent to 8.71 billion euros from 7.63 billion euros last year.

Further, the company plans to propose a dividend of 3.35 euros per share, subject to shareholders' approval at upcoming Annual Shareholders' Meeting on May 21.

It represents an increase of 16 percent over the prior year dividend 2.90 euros per share.

The company added that it will continue to execute 5 billion euros share buyback programme.

Looking ahead for fiscal 2026, Safran expects to achieve, excluding Safran Passenger Innovations, revenue growth in up low to mid-teens, and recurring operating income of 6.1 billion euros to 6.2 billion euros.

Further ahead, for fiscal 2028, the company now expects recurring operating income of 7.0 billion euros to 7.5 billion euros, higher than previous estimate of 6.0 billion euros to 6.5 billion euros.

In Paris, the shares were trading 7.4 percent higher at 329.90 euros.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.