Safran Sa Unsponsored Adr (SAFRY)
OTHER OTC:SAFRY
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SAFRAN SA
(OTC:SAFRY)
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Rating:75Outperform
Price Target:
$93.00
▼(-0.17% Downside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by solid financial performance (strong revenue trajectory and consistently positive cash generation, tempered by earnings volatility), supported by bullish technical trend signals. Upgraded guidance and positive earnings-call sentiment add confidence, while valuation is the main offset due to a moderate P/E and low dividend yield.
Positive Factors
Revenue Growth
Sustained double-digit top-line growth and an upgraded multi‑year revenue CAGR (~10% to 2028) indicate durable demand across OEM and services channels. This growth trajectory supports scale advantages, larger installed base and a steadier aftermarket revenue stream over the medium term.
Negative Factors
Earnings Volatility
Material year‑to‑year swings in net results and episodic losses show earnings are sensitive to one‑offs, tax items and timing. This volatility reduces near‑term predictability of profits and capital allocation, complicating sustainable margin forecasting over a multi‑year horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained double-digit top-line growth and an upgraded multi‑year revenue CAGR (~10% to 2028) indicate durable demand across OEM and services channels. This growth trajectory supports scale advantages, larger installed base and a steadier aftermarket revenue stream over the medium term.
Read all positive factors
SAFRAN SA (SAFRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$138.10B
Dividend Yield0.94%
Average Volume (3M)77.96K
Price to Earnings (P/E)14.6
Beta (1Y)0.76
Revenue Growth14.84%
EPS Growth164.83%
CountryUS
Employees96,390
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.10
Shares Outstanding1,673,378,500
10 Day Avg. Volume192,404
30 Day Avg. Volume77,961
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)8.35
Price to Sales (P/S)4.13
P/FCF Ratio28.76
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue3.77
Enterprise Value/Gross Profit12.26
Enterprise Value/Ebitda20.50
Forecast
1Y Price Target
$104.40Price Target Upside12.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.98
Revenue Forecast (FY)$41.55B
SAFRAN SA Business Overview & Revenue Model
Company Description
Safran SA, together with its subsidiaries, engages in the aerospace and defense businesses worldwide. The company operates through three segments: Aerospace Propulsion; Aircraft Equipment, Defense and Aerosystems; and Aircraft Interiors. The Aeros...
How the Company Makes Money
Safran makes money primarily through (1) selling original equipment to aerospace and defense manufacturers and (2) providing high-margin aftermarket services over the operating life of the equipment it installs on aircraft and other platforms.
Ke...
SAFRAN SA Earnings Call Summary
Earnings Call Date:Feb 13, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial performance: robust revenue growth (+14.7% to EUR 31.3bn), record LEAP deliveries (+28%), significant margin expansion (+150 bps to 16.6%), and materially higher free cash flow (+23% to EUR 3.9bn). Management upgraded multi‑year targets and reiterated strong 2026 guidance. Key risks include FX volatility and hedging exposure, a non‑trivial French corporate surtax impact, one‑off charges, tariffs and ongoing supply‑chain/raw‑material risks, and the timing of LEAP RPFH profit recognition (mostly post‑2030). Overall, the positives (revenue, margin, cash generation, market share gains, upgraded guidance and defense momentum) materially outweigh the headwinds.Positive Updates
Strong Group Revenue Growth
Group revenue EUR 31.3 billion in 2025, up EUR 4.0 billion or +14.7% year-on-year (14.8% organic). OE sales +11.3% and Services revenue +18%.
Negative Updates
FX Headwinds and Volatility
US dollar weakness vs euro dragged results: FX translation reduced revenues by ~3.2% in 2025. Hedging hit an event in late January that cost <USD 1 billion of hedging volume (under 2% of portfolio), exposing sensitivity to EUR/USD moves above KO barriers.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Group Revenue Growth
Group revenue EUR 31.3 billion in 2025, up EUR 4.0 billion or +14.7% year-on-year (14.8% organic). OE sales +11.3% and Services revenue +18%.
Read all positive updates
Company Guidance
Safran’s 2026 guidance calls for group revenue up low‑ to mid‑teens, recurring operating income of EUR 6.1–6.2bn and free cash flow of EUR 4.4–4.6bn (including an estimated EUR 470m French surtax hit); LEAP OE deliveries are expected to rise ~15% in 2026 (after 1,802 LEAP deliveries in 2025, 562 in Q4) with a target of ~2,600 engines by 2028, propulsion margin guidance lifted to 22–24% in 2028, Equipment & Defense targeted at mid‑teens and Aircraft Interiors at high single‑digit margins. The company expects CFM56 shop visits to plateau at ~2,300–2,400/yr through 2028, spare parts growth mid‑teens and services around +20%, has increased 2024–2028 revenue CAGR to ~10%, raised 2028 EBIT by EUR 1bn, is targeting an additional EUR 4–6bn free cash flow over 2024–2028 (cumulative ~EUR 21bn), and confirms a $1.12 hedge rate for 2026 with $16bn exposure in 2026/$17bn thereafter (grading $1.12–1.14 for 2029), while flagging tariff and surtax headwinds.SAFRAN SA Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 29.96B | 27.72B | 23.65B | 19.52B | 15.13B |
| Gross Profit | 4.30B | 13.27B | 11.21B | 2.19B | 980.00M |
| EBITDA | 5.40B | 676.00M | 4.41B | 3.68B | 1.55B |
| Net Income | 6.89B | -667.00M | 3.44B | -2.46B | 43.00M |
Balance Sheet | |||||
| Total Assets | 61.79B | 55.01B | 50.47B | 46.83B | 41.72B |
| Cash, Cash Equivalents and Short-Term Investments | 6.79B | 6.76B | 6.68B | 6.93B | 5.35B |
| Total Debt | 5.97B | 5.06B | 6.58B | 6.95B | 7.13B |
| Total Liabilities | 46.33B | 44.29B | 38.38B | 35.96B | 28.45B |
| Stockholders Equity | 14.83B | 10.18B | 11.58B | 10.41B | 12.84B |
Cash Flow | |||||
| Free Cash Flow | 4.31B | 3.19B | 3.44B | 2.95B | 2.00B |
| Operating Cash Flow | 5.50B | 4.73B | 4.27B | 3.54B | 2.44B |
| Investing Cash Flow | -3.24B | -1.85B | -1.70B | -1.29B | -738.00M |
| Financing Cash Flow | -1.93B | -3.07B | -2.58B | -815.00M | -268.00M |
SAFRAN SA Technical Analysis
Negative
93.16
Price Trends
90.82
Negative
89.50
Negative
86.76
Negative
Market Momentum
-2.97
Negative
42.37
Neutral
82.54
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAFRY, the sentiment is Negative. The current price of 93.16 is above the 20-day moving average (MA) of 85.07, above the 50-day MA of 90.82, and above the 200-day MA of 86.76, indicating a bearish trend. The MACD of -2.97 indicates Negative momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 82.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAFRY.
SAFRAN SA Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $98.75B | 19.57 | 26.50% | 1.55% | -0.14% | 72.35% | |
75 Outperform | $138.10B | 14.63 | 51.15% | 0.94% | 14.84% | 164.83% | |
75 Outperform | $266.32B | 38.02 | 10.62% | 1.44% | 8.79% | 39.63% | |
74 Outperform | $95.01B | 21.58 | 17.57% | 1.73% | 11.86% | 17.39% | |
74 Outperform | $146.77B | 22.26 | 80.53% | 2.77% | 2.88% | -35.15% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $166.73B | 74.05 | -94.94% | ― | 10.19% | -6.03% |
* Industrials Sector Average
SAFRY
SAFRAN SA
82.90
25.66
44.83%
BA
Boeing
212.30
72.91
52.31%
GD
General Dynamics
351.39
101.81
40.79%
LMT
Lockheed Martin
637.90
206.33
47.81%
NOC
Northrop Grumman
695.79
211.60
43.70%
RTX
RTX
198.41
79.95
67.49%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.