By Tom Batchelor

Jul 31, 2025, © Leeham News: Safran has reported a robust set of half-year results for 2025, underpinned by booming aftermarket services, a ramp-up in LEAP engine deliveries, and strong growth across all business segments.

The aerospace and defence supplier posted revenues of €14.8bn ($16.9bn) for the first six months of the year, up 13.2% compared to H1 2024.

The Paris-based group’s propulsion division led the charge, with revenue up 16.9%, boosted by a 21.3% surge in aftermarket services and a 9.7% rise in original equipment (OE) sales.

All eyes on LEAP

Safran’s civil engine spare parts sales were up 21.6% in US dollar terms, driven by high demand for CFM56 and LEAP engines, while LEAP engine deliveries rose 10% to 729 units.

Bernstein analysts said after CFM joint venture partner GE released its results earlier in July that a strike in Q1 had led to concerns that the LEAP engine deliveries target of +15-20% growth in 2025 would be missed, not least because there was a 13% decline in that three-month period.

However LEAP deliveries in Q2 were up 38%. “They still need to grow by +20% in H2 to meet the low-end of the guide, but that should ease the concerns,” the research note said.

Elsewhere, Safran said revenue in its Equipment & Defense division was up 8%, driven by landing systems and defense activities, while Aircraft Interiors saw 15.5% growth.

OE sales growth of 14.4% was mainly driven by Safran seats, particularly business class seat deliveries, which jumped to 1,238 units in H1 2025 vs 750 in H1 2024.

Income and margins up

The French aerospace group’s operating income reached €2.5bn – up by more than a quarter year-on-year – with a group-wide operating margin of 17%.

Propulsion margins stood out at 23.3%, with that unit’s operating income of €1.8bn, up by 37%, bolstered by strong aftermarket volumes, the start of profit recognition on LEAP-1A flight-hour contracts, and continued strength in military and helicopter engine activity.

Safran’s free cash flow hit €1.83bn, driven by strong operational performance, though working capital requirements and capital expenditure slightly offset gains.

Net cash stood at €1.87bn at the end of June, after €1.2bn in dividend payments and €713m in share buybacks.

Highlights from Safran’s H1 2025 earnings report. Credit: Safran

Last week the group announced the acquisition of Collins Aerospace’s flight control and actuation business, a move that Safran says will cement its leadership in this area.

The transaction, valued at $1.8bn, will bring in an estimated $50m in annual pre-tax cost synergies by 2028.

There is a “promising growth outlook for both civil aerospace and defense,” according to Olivier Andriès, Safran’s CEO.

Commenting on the earnings announcement, he said: “Reflecting this positive environment, Safran delivered excellent results in the first half of 2025 achieving a record operating margin of 17% as well as unprecedented cash generation, driven by robust civil engine aftermarket activities.

“In the light of this strong performance, we are raising our full-year guidance on all metrics and reiterate our confidence in our mid-term outlook.

“On the trade front, we welcome the progress made on transatlantic tariff exemption for most aerospace products, and remain vigilant and proactive in managing any residual exposure.”

Notable milestones include Ryanair purchasing 30 LEAP-1B spare engines, and a partnership with Saft to co-develop a high-voltage battery system for aviation electrification.

Safran also plans to build a new aircraft carbon brake production facility near Lyon in France.

Scheduled to begin operations in 2030, the site will enable Safran to achieve an increase in volumes of 25% by 2037, supported by existing production plants elsewhere in France, the U.S. (Walton) and Malaysia.

Raising full-year guidance

Looking ahead, Safran now expects revenue to grow in the low teens (previously around 10%), recurring operating income to reach between €5-5.1bn, and free cash flow of €3.4-3.6bn, all excluding contributions from the Collins acquisition and any tariff impact.

With LEAP engine deliveries forecast to grow 15–20% this year and aftermarket revenues climbing steadily, Safran remains well-positioned.

The company hopes to benefit from planned increases in defense budgets, and sees LEAP engine deliveries increasing by between 15-20% this year.

However it cautioned that the “main risk factor is the supply chain production capability.”