Safran Sees Growth In Organic Revenue, Recurring Operating Income Margin By 2025

French Aerospace company Safran (SAF.PA,0IU8.L,SAFRF.PK) Thursday said it expects organic revenue growth over 2021-2025 to reach 10 percent CAGR.

Further, recurring operating income margin is expected to reach 16 percent to 18 percent by 2025, representing more than 5 points margin expansion from 2021 mainly driven by growth in services across all divisions.

Safran, which is hosting its 2021 Capital Markets Day today, said its expected organic revenue growth will be driven by higher OE build rates and a recovery in aftermarket activities. LEAP deliveries will ramp again up to 2,000 engines from 2023. Civil aftermarket revenue should grow at around 15 percent CAGR over the period.

By division, Safran's recurring operating margin ambition by 2025 is above 20 percent for Propulsion, around 15 percent for Equipment & Defense, and above 10 percent for Aircraft Interiors.

The company further said it targets to resume historical practice of 40 percent dividend payout ratio related to fiscal year 2022, to be paid in 2023.

In addition and beyond 2023, the Board of directors will review its practice in order to ensure growing and attractive returns to shareholders.

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