SAFRAN SA (SAFRY) AI Stock Analysis

• Market Cap: $147.94B
• Dividend Yield: 0.94%
• Average Volume (3M): 39.40K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.71
• Revenue Growth: 14.84%
• EPS Growth: 164.83%
• Country: US
• Employees: 96,390
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.11
• Shares Outstanding: 1,673,378,500
• 10 Day Avg. Volume: 24,450
• 30 Day Avg. Volume: 39,404
• PEG Ratio: -0.02
• Price to Book (P/B): 8.35
• Price to Sales (P/S): 4.13
• P/FCF Ratio: 28.76
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 4.05
• Enterprise Value/Gross Profit: 13.18
• Enterprise Value/Ebitda: 22.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.01
• Revenue Forecast (FY): $41.76B

• Rating: 75 Outperform
• Price Target: $104.00 ▲(11.64% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 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

Durable Aftermarket & Installed Base

A higher, sustained shop-visit baseline and mid‑teens spare‑parts growth underpin recurring aftermarket revenue. This installed‑base economics provides durable cash flow, reduces revenue cyclicality from OE cycles, and supports long‑term margin resilience across economic swings.

Strong Free Cash Flow & Conversion

Consistent FCF generation and a high EBIT-to-cash conversion rate increase financial flexibility for reinvestment, R&D, MRO capacity, and shareholder returns. Durable cash conversion supports deleveraging and cushions the business through aerospace demand cycles.

Leading Propulsion Franchise & LEAP Ramp

A rapid LEAP production ramp plus high, improving propulsion margins signal strong scale and competitive advantage in engines. Large OE shipments expand the installed base, locking in long‑term aftermarket capture and structurally higher margin contribution over the medium term.

Negative Factors

Timing of LEAP RPFH Profit Recognition

Substantial modeled RPFH upside largely recognized post‑2030 reduces near‑to‑mid‑term profit visibility. This timing mismatch can delay margin realization from recovered program economics, making short‑to‑medium‑term earnings and cash forecasts more dependent on OE ramp and services execution.

French Corporate Surtax and Tax Drag

A multi‑year surtax materially reduces reported earnings and free cash flow, constraining distributable cash and reinvestment capacity. The structural tax burden increases leverage on operating performance to meet targets and limits visible cash available for buybacks or faster deleveraging.

Supply‑Chain & Raw‑Material Constraints

Persistent upstream bottlenecks and raw‑material risks can cap production ramp rates, raise unit costs, and delay deliveries. Even with internal investments, capacity and certification lead times mean these constraints can suppress margins and growth over the medium term.

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 Aerospace Propulsion segment designs, develops, produces, and markets propulsion and mechanical power transmission systems for commercial aircraft, military transport, training and combat aircraft, civil and military helicopters, and drones. This segment also offers maintenance, repair, and overhaul services, as well as sells spare parts. The Aircraft Equipment, Defense and Aerosystems segment provides landing gears and brakes; and engine systems and equipment, such as thrust reversers and nacelles. This segment also offers avionics, such as flight controls and onboard information systems; security systems, including evacuation slides, emergency arresting systems, and oxygen masks; onboard computers and fuel systems; electrical power management systems and associated engineering services; and optronic equipment and sights, navigation equipment and sensors, infantry, and drones, as well as sells spare parts. Its products and services are used in civil and military aircraft, and helicopters. The Aircraft Interiors segment designs, develops, manufactures, and markets aircraft seats for passengers and crew; cabin equipment, overhead bins, class dividers, passenger service units, cabin interior solutions, chilling systems, galleys, electrical inserts, and trolleys and cargo equipment; and water distribution equipment, lavatories, air systems, and in-flight entertainment and connectivity systems. Safran SA was incorporated in 1924 and is headquartered in Paris, France.

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. Key revenue streams: - Propulsion (aircraft engines): Revenue is generated from delivering engines to airframers and operators and from long-term aftermarket activities such as maintenance, repair and overhaul (MRO), spare parts sales, shop visits, and service agreements. In civil aviation, the installed base of engines creates recurring demand for parts and services throughout an engine’s life cycle, which is a major driver of cash generation. - Aerospace equipment: Safran sells systems and components (e.g., landing gear, wheels and brakes, nacelles, electrical power and wiring systems, avionics-related equipment) to aircraft and helicopter OEMs. It also earns recurring revenue from spares, repairs, and overhaul services for these systems once in service. - Aircraft interiors: Revenue comes from sales of aircraft seats, cabin interiors, and related equipment to aircraft manufacturers and airlines, plus aftermarket spares and support tied to the installed base. - Defense and security/identity solutions: Depending on program scope, revenue is generated through deliveries of equipment/systems and associated support services under contracts with governments and other customers. Revenue model characteristics and drivers: - Mix of OE and aftermarket: Original equipment sales can be cyclical with aircraft production rates, while aftermarket revenue is driven by fleet size, aircraft utilization (flight hours/cycles), and maintenance intervals; this tends to provide more recurring and resilient earnings over time. - Long product lifecycles and installed base economics: Once Safran equipment is selected and certified on an aircraft platform, switching is limited, supporting durable revenue from spares and services. - Partnerships and risk-sharing on major programs: Safran participates in large aerospace programs that may involve partnerships or joint ventures (notably in civil engines). Such arrangements can affect how program revenue and profits are shared across partners; specific financial split details are not provided here (null).

SAFRAN SA Financial Statement Overview

Summary

Strong multi-year revenue growth and consistently positive operating/free cash flow (with a sharp FCF improvement in 2025) support a solid profile. The main constraint is earnings volatility, including losses in 2022 and 2024, and a balance sheet that is manageable but not conservative given the sustained debt load.

Income Statement

Revenue has expanded strongly from 2020 to 2025 (from ~16.6B to ~30.0B), showing a solid multi-year growth trajectory. Profitability, however, has been volatile: net results swung from losses in 2022 and 2024 to strong profits in 2023 and a very strong 2025. The latest annual period shows high operating profit relative to revenue, but the year-to-year inconsistency (including a 2024 loss) keeps the score below top-tier.

Balance Sheet

Leverage looks manageable overall, with debt generally around roughly half of equity in recent years (about 0.50–0.67 debt-to-equity historically). Equity increased meaningfully into 2025, which supports balance-sheet resilience. That said, the combination of earnings volatility and a consistently material debt load suggests the capital structure is solid but not conservative, leaving some sensitivity if industry conditions weaken.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow have been positive every year provided, and free cash flow improved sharply in 2025 (up ~20% year over year to ~4.3B). While free cash flow growth has been uneven (including a decline in 2024), the business has demonstrated an ability to translate operations into cash across the cycle, which supports financial flexibility.

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

• Technical Analysis Sentiment: Negative
• Last Price: 93.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 below the 20-day moving average (MA) of 96.88, below the 50-day MA of 93.49, and above the 200-day MA of 86.05, indicating a neutral trend. The MACD of -0.72 indicates Positive momentum. The RSI at 38.62 is Neutral, neither overbought nor oversold. The STOCH value of 9.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAFRY.

SAFRAN SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOC	77 Outperform	$104.50B	19.57	26.50%	1.55%	-0.14%	72.35%
SAFRY	75 Outperform	$147.94B	17.96	51.15%	0.94%	14.84%	164.83%
RTX	75 Outperform	$272.54B	36.54	10.62%	1.44%	8.79%	39.63%
GD	74 Outperform	$96.05B	21.58	17.57%	1.73%	11.86%	17.39%
LMT	74 Outperform	$150.20B	22.26	80.53%	2.77%	2.88%	-35.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	56 Neutral	$160.81B	74.05	-94.94%	―	10.19%	-6.03%