Paris, France – Safran, a leading French aerospace-industry supplier, has announced a share buyback program of up to 1 billion euros ($1.11 billion) following improved earnings and revenue in the first half of the year. The company’s strong performance can be attributed to the robust demand for spare parts in the narrowbody air traffic sector.
For the three months ending June 30, Safran reported adjusted revenue of EUR5.68 billion, marking a significant increase of 26.5% in reported terms and 27% organically. Despite facing ongoing industry-wide supply chain challenges, Chief Executive Olivier Andries stated that the company remains on track to meet its delivery commitments.
During the first half of the year, Safran achieved an adjusted recurring operating income of EUR1.40 billion, representing an impressive growth of 33% in reported terms and 27.3% organically. However, the company experienced a decline in free cash flow, from EUR1.67 billion to EUR1.46 billion.
With regards to its guidance for the year, Safran has revised its adjusted recurring operating income forecast from approximately EUR3 billion to roughly EUR3.1 billion. Additionally, the company now expects a minimum free cash flow of EUR2.7 billion, up from the previous estimate of at least EUR2.5 billion. Safran maintains its expectation of achieving adjusted revenue of at least EUR23 billion.
To strengthen its position further, Safran plans to initiate and complete its share buyback program by the end of 2025.