Safran is targeting average annual growth in adjusted revenue of "
more than 10%
" over the period 2021-2025 and accelerating its research spending to reduce the carbon footprint of aviation, announced Thursday. French group.
The aeronautical engine and equipment manufacturer indicated, during an investor day, that he considered himself "
well positioned to face the growth dynamics of the aeronautics market
", which has faced the sudden drop in its price. activity with the Covid-19 pandemic.
Our economic model is anchored on solid foundations and leading positions in our markets (...) Safran is rebounding after the crisis with strong and profitable growth, at the forefront of sustainable aviation
", affirms its managing director Olivier Andriès, quoted in a press release.
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The group, which in 2018 acquired the equipment supplier Zodiac Aerospace, specializing in on-board aircraft systems or even cabin fittings, also indicated that a “
” led to the conclusion that 70% of the activities from Zodiac were "
confirmed as essential
", the remaining 30% being "
" with a view to possible disposal. Over the period 2021-2025, the increase in its revenues will be driven by "
the growth in revenues from civil engine services activities of around 15%.
While air traffic should return to its pre-crisis level between 2023 and 2025, companies will need more spare parts and maintenance for their engines, highly profitable activities for the group, which carries out half of its activity. in aeronautical propulsion.
Safran relies on its Leap engine
The group also considers itself well positioned to take advantage of the deliveries of new aircraft, in particular on short and medium-haul aircraft, for which Boeing and Airbus have started to increase production rates: the market share of its Leap engine, which equips the totality of the 737 MAX and more than half of the devices of the family, amounts to 72%, according to him. Leap deliveries, which should reach "
" in 2021, against 1,700 in 2019, will "
increase again to reach 2,000 engines from 2023
", predicts the engine manufacturer. For the group as a whole, also present in defense, the current operating margin “
should reach 16% to 18% by 2025
”, ie five points more than in 2021.
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Finally, Safran, which like the entire sector is aiming for carbon neutrality by 2050, intends to accelerate its research and technology (R&T) spending, maintained during the pandemic, in particular thanks to public support.
The group "is
thus accelerating its investment in R&T between 2021 and 2025 with a self-financed portion representing 2.8 billion euros and expected public funding of 1.4 billion euros
Safran is betting heavily on the Rise program, developed with its American partner General Electric "
which aims to provide breakthrough technologies for future engines for short and medium-haul aircraft