Safran's third-quarter revenue edges past forecasts on strong engine aftermarket

what happened

Jet engine maker Safran reported third-quarter revenue of €9 billion, about $10.09 billion, up 13.4% on an organic basis. Analysts had expected €8.99 billion on average, based on a consensus the company itself compiled, according to Reuters.

Its Equipment and Defence unit brought in €3.6 billion, against the €3.5 billion analysts projected. The propulsion business, which accounted for half of 2025 revenue, grew organically by 13.2%, while aftermarket sales jumped 18.7%. Chief Executive Olivier Andries credited steady airline spending on maintenance for the strong aftermarket trend.

Safran kept its 2026 guidance, targeting mid-teens revenue growth and recurring operating income of €6.4 to €6.5 billion. Separately, GE Aerospace, whose CFM venture with Safran builds LEAP engines for Boeing and Airbus narrow-bodies, lifted its 2026 profit outlook on Tuesday despite fuel costs squeezing airlines.

why it matters

Demand for spare parts and engine maintenance is keeping profits up across the engine sector, even as higher fuel prices weigh on airlines. For investors tracking aerospace, the picture points to a resilient aftermarket, which often matters more than new deliveries for margins.

market impact

Aerospace: strong spare-parts demand supports Safran and GE Aerospace earnings; airlines face fuel-cost pressure

tags

instruments