After record H1: French group raises outlook significantly

Safran has raised its full-year outlook after reporting record profitability and higher activity across several defence businesses in the first half of 2026.

The French group’s adjusted revenue increased 19 per cent to EUR 17.57bn, while recurring operating income rose 29 per cent to EUR 3.24bn. The operating margin reached 18.4 per cent, up from 17 per cent a year earlier.

Safran now expects recurring operating income of between EUR 6.4bn and EUR 6.5bn for the full year, up from its previous forecast of between EUR 6.1bn and EUR 6.2bn. Revenue is expected to grow by around 15 per cent.

Civil aircraft engines and related services remained the main drivers of the group’s financial performance. However, Safran also recorded increased deliveries of military engines, missile propulsion systems and defence electronics.

Deliveries of M88 engines, which power the Rafale fighter aircraft, increased from 10 in the first half of 2025 to 33 in the same period this year. Safran said military engine revenue rose due to higher deliveries, a more favourable customer mix and aftermarket activity.

Missile propulsion revenue also benefited from increased deliveries, although the group did not disclose the number of systems delivered or the resulting revenue growth.

Defence electronics recorded higher volumes in inertial navigation systems, optronics and AASM Hammer air-to-surface weapons.

Defence activities lift earnings

Safran does not report defence as a separate financial segment. Its military activities are divided between Propulsion and Equipment & Defence, both of which also include substantial civil aerospace businesses.

Equipment & Defence revenue reached EUR 6.93bn, an increase of 23.6 per cent from the first half of 2025. Organic growth was 14 per cent, or 12.4 per cent before the internal transfer of activities from the Aircraft Interiors division.

Recurring operating income in Equipment & Defence rose 29 per cent to EUR 907m, lifting the margin from 12.5 per cent to 13.1 per cent. Safran said higher defence electronics deliveries contributed to the improvement, alongside growth in civil aircraft equipment and services.

The group is investing EUR 190m to increase capacity across several defence technology areas. This includes EUR 120m to triple production capacity for inertial navigation systems at Montluçon in France between 2026 and 2032.

Safran is also investing EUR 50m in positioning, navigation, timing and optronics capacity in Germany and EUR 20m in optronics and intelligence, surveillance and reconnaissance capacity in France.

The group continues to list supply-chain production capacity as a risk to its full-year outlook.