Full Year 2024 Safran SA Earnings Call Transcript
Key Points
- Safran SA (SAFRF) achieved record levels in revenues, profits, and cash flows for 2024, with a significant 18% revenue growth to EUR27.3 billion.
- The company improved its operating margin by 150 basis points, reaching 15.1%, demonstrating strong operational excellence.
- Safran SA (SAFRF) completed the acquisition of CRT, a US MRO leader, and divested its 50% share of Roxel, indicating strategic portfolio management.
- The LEAP-1A engine achieved FAA and EASA certification for a new high-pressure turbine durability kit, enhancing its durability and profitability.
- Safran SA (SAFRF) is on track with its sustainability goals, dedicating 88% of its EUR700 million research and technology budget to environmental efficiency and increasing its EcoVadis rating to 65 out of 100.
- Original Equipment (OE) deliveries were down 10% due to supply chain constraints, impacting lead volumes.
- Despite strong aftermarket growth, the company faces ongoing supply chain issues that are expected to persist into 2025.
- The Aircraft Interiors division, although back to profitability, is still 5% below the record levels of 2019.
- The company is exposed to potential tariff impacts due to its global supply chain, particularly concerning parts crossing borders between the US, Mexico, and Canada.
- Safran SA (SAFRF) faces challenges in managing inventory and customer advance payments amidst a volatile market environment.
Welcome to the Safran full year 2024 results. At this time, I would like to turn the conference over to your host, Olivier Andriès, Safran's CEO; and Pascal Bantegnie, Group CFO.
Mr. Andriès, please go ahead.
Good morning, everyone, and thank you for joining us to our full year 2024 earnings call. I'm here with Pascal.
Starting with our key highlights. 2024 has been a landmark year for Safran with revenues, profits, and cash flows reaching record levels. These achievements were underpinned by strong aftermarket activity across the board. With notably, civil aftermarket activity growing by 25% in dollar terms, supported among other things by the more than 10,000 aircraft in service powered by the second-generation CFM56.
Our focus on operational excellence continues to deliver results. We improved our operating margin by 150 basis points year over year. And we are pleased to see South France seats reaching operating breakeven, marking another milestone in our turnaround
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