Safran: Initiation of Coverage- Will the LEAP Engine Ramp-Up Reverse Its Stock Slide?

Safran’s financial results show a strong performance in 2024, with record highs in revenue, profit, and cash flows. Revenue increased by 18% to €27.3 billion, largely driven by a 25% growth in civil aftermarket activities. Operating margin improved by 150 basis points to 15.1%, supported by operational excellence and strong aftermarket demand. The company’s free cash flow was impressive at €3.2 billion, despite supply chain constraints impacting Original Equipment (OE) deliveries.