Safran Third-Quarter Revenue Climbs 14.7% as LEAP Deliveries Rise

Safran reported adjusted revenue of 9,003 million euros for the third quarter of 2026 on October 23, 2026, an increase of 14.7% from the same period of 2025 and of 13.4% on an organic basis, and confirmed the full-year 2026 outlook it revised upward in July 2026, according to the company’s third-quarter revenue release.

On a consolidated basis, third-quarter revenue was €8,890 million, up 15.2%. Adjusted revenue for the first nine months of 2026 was €26,574 million, up 17.5%, and consolidated nine-month revenue was €26,135 million, up 15.7%. Safran prepares adjusted figures alongside its consolidated statements: foreign-currency revenue net of purchases is measured at the hedged rate, and mark-to-market changes on instruments hedging future cash flows are neutralized. The published reconciliation adds a €113 million currency-hedging remeasurement to the €8,890 million consolidated third-quarter figure to arrive at the €9,003 million adjusted figure, and a €439 million remeasurement to the nine-month consolidated figure.

The third-quarter bridge shows organic growth of €1,051 million, a positive currency impact of €84 million and a positive change in scope of €15 million. The average euro/dollar spot rate was 1.15 in the quarter versus 1.17 in the third quarter of 2025, while the hedge rate was unchanged at 1.12. For the first nine months, the full release document reports organic growth of €4,040 million, or 17.9%, a positive scope effect of €570 million and a negative currency impact of €657 million, with an average spot rate of 1.16 versus 1.12 a year earlier. The scope effects reflect the consolidation of Collins Aerospace’s flight control and actuation activities from August 2025, the divestment of Safran Passenger Innovations in January 2026 and the consolidation of Attollo from January 2026.

Chief Executive Officer Olivier Andriès said Safran “once again delivered robust revenue growth in Q3, at 15%,” pointing to healthy demand across commercial original equipment and services activities, solid progress on the LEAP ramp-up supported by improving supply chain conditions, and continued strength in civil engine spare parts. He said the group’s defense activities are benefiting from robust market dynamics and that Safran is expanding production capabilities, adding that “we are confident in Safran’s ability to deliver on its commitments for 2026 and accelerate production across both civil and defense.”

Division Revenue and Deliveries

Propulsion organic revenue rose 13.2% in the quarter, with aftermarket up 18.7% and original equipment up 3.5%; segment revenue was €4,628 million versus €4,044 million a year earlier. Civil engine spare parts sales increased 17.0% in US dollars, driven by CFM56 pricing and improved part availability, supporting an elevated but stable workscope level compared with the first half of 2026, and by LEAP, which benefited from higher third-party shop visit volumes, expanded workscope and pricing. Services revenue rose 19.0% in dollars, mainly reflecting growth of LEAP rate-per-flight-hour contracts. Over the nine months, spare parts revenue rose 23.9% and services revenue 32.5%, both in dollar terms.

LEAP engine deliveries totaled 535 in the quarter versus 511 a year earlier, up 5% both year over year and sequentially, with a normalizing spare engine ratio compared with the first half of 2026, the company said. Nine-month LEAP deliveries reached 1,565 units, up 26%. Military engine revenue declined year on year, primarily on lower M88 deliveries reflecting the phasing of Rafale deliveries to export customers: no M88 engines were delivered in the third quarter of 2026 versus seven a year earlier, while nine-month deliveries were 33 versus 17. Helicopter turbine activities grew on higher deliveries and a higher level of services, with 213 units delivered in the quarter versus 192.

Equipment and Defense organic revenue rose 15.7%, with segment revenue of €3,623 million versus €3,004 million and a positive scope effect of €122 million that mainly reflects the flight control and actuation activities consolidated from August 2025. Original-equipment sales grew 16.2%, led by defense activities including the AASM Hammer, optronics, inertial navigation systems and missile seekers, with nacelles for the A320neo and electrical systems for the 737 MAX, 787 and A350 also contributing. Aftermarket services increased 14.7%, particularly in nacelles and actuation systems.

Aircraft Interiors organic revenue rose 5.8%, while reported segment revenue fell 6.4% to €751 million from €802 million after a negative €107 million scope effect that includes the Safran Passenger Innovations disposal. Aftermarket activities rose 8.0%, mostly driven by Seats on both volume and price, with Cabin also contributing on activity for customers in the Middle East, Europe and the Americas. Original-equipment sales rose 4.4%, mainly on business class seat deliveries, which reached 635 units versus 428 a year earlier, an increase of 48%. Safran said seats market demand continues to outpace supply, allowing more favorable contractual terms even though the industry still faces certification challenges.

Buyback, Hedging and 2026 Outlook

Within its €5 billion share repurchase program for cancellation, Safran launched a €375 million buyback tranche on September 21, 2026 and completed it on October 20, 2026. As of October 20, the company had repurchased roughly 4 million shares in 2026, or 1% of share capital, for a total of €1.25 billion, with the shares scheduled for cancellation before the end of the year. The results presentation details €875 million of purchases between January and July 2026 covering about 2.8 million shares, with the €375 million tranche accounting for approximately 1.2 million shares.

On September 14, 2026, Standard & Poor’s raised its long-term issuer credit rating on Safran and its rating on the senior unsecured debt to ‘A’ with a stable outlook, from ‘A-‘ with a positive outlook.

The hedging portfolio, expressed in US dollars, stood at $61.1 billion in September 2026 versus $59.5 billion in June 2026. The company states that 2026 is fully hedged at a targeted euro/dollar rate of 1.12 against a net annual exposure of $16 billion as a working hypothesis, that 2027 and 2028 are fully hedged at 1.12 with net annual exposure capped at $17 billion, that 2029 is fully hedged at a targeted 1.12 to 1.14 with exposure capped at $17 billion, and that hedging for 2030 amounts to $8.2 billion as of the end of September 2026. The presentation adds that the hedge book includes barrier options with knock-out triggers ranging from $1.17 to $1.35, which it describes as a risk to the size of the book and to targeted hedge rates from 2026 onwards in case of sudden and significant exchange-rate fluctuations, and that approximately 45% of its US-dollar revenue is naturally hedged by dollar procurement. Estimated net exposure for 2030 is $12 billion.

Safran confirmed its full-year 2026 outlook as revised upward in July: revenue growth up mid-teens, recurring operating income of €6.4 billion to €6.5 billion, and free cash flow of €4.7 billion to €4.9 billion, the cash-flow figure including an estimated negative impact of approximately €500 million from the French corporate surtax and subject to the payment schedule of some advance payments and the pace of payments by state customers. The outlook assumes LEAP engine deliveries up high-teens, spare parts and services revenue in dollars each up mid-twenties, a euro/dollar spot rate of 1.15 and a hedge rate of 1.12. Listed watch items are supply chain production capabilities and the potential impact of the Middle East conflict.

The presentation also states that France’s 2027 draft Finance Bill proposes extending the corporate surtax into 2027, with a potential impact for Safran of roughly €400 million to €500 million of cash outflow depending on the final rate of 31.4% or 41.2%.

Third-quarter business highlights cited in the presentation include Turkish Airlines’ memorandum of understanding for more than 300 LEAP-1B engines, with services for more than 600 and an MSA for its future MRO shop; a new TR40 assembly line in Texas, with turbojet capacity to double by 2028; the selection of the SkyNaute inertial navigation system for the Airbus A220, marking its debut in commercial aviation; and ArianeGroup’s first successful M51.3 submarine launch together with six additional Ariane 6 launches ordered by Amazon.

Safran scheduled an IFRS18 workshop for December 3, 2026, from 8:30 a.m. to 9:30 a.m. CET, full-year 2026 results for February 9, 2027, first-quarter 2027 revenue for April 23, 2027, its annual general meeting for May 27, 2027, first-half 2027 results for July 28, 2027 and third-quarter 2027 revenue for October 21, 2027. The company hosted a webcast for analysts and investors at 8:30 a.m. CET on the release date.