logo
  

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.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The National Restaurant Association or NRA has urged the U.S. Congress to refill the Restaurant Revitalization Fund or RRF, which is expected to save more than 1.6 million jobs in the restaurant industry hit hard by the surge in Omicron Variant. In a letter to Congress, the association highlighted, based on its survey on 4,200 restaurant operators, the devastating impact so far on the industry... Industrial conglomerate General Electric Co. reported Tuesday a net loss for the fourth quarter compared to a profit last year, hurt by steep debt extinguishment costs and lower revenues. However, adjusted earnings per share topped analysts' expectations, while quarterly revenues missed them. Shares of LM Ericsson were gaining more than 7 percent in Swedish trading as well as in pre-market activity on Nasdaq, after the telecom equipment maker reported Tuesday higher profit and sales in its fourth quarter with strong demand. Further, the company lifted its full-year dividend, and maintained targets for fiscal 2022 EBIT growth as well as long-term target of EBITA margin.
Follow RTT