Safran Sees Income Margin, Revenue Growth Through 2025
02 Dezember 2021 - 9:12AM
Dow Jones News
By Olivia Bugault
Safran SA said Thursday ahead of its capital markets day
starting later today that it expects profit margin and revenue to
grow through 2025, while it also disclosed other mid-term
targets.
The French defense-and-aerospace company said it expects its
recurring operating income margin to reach 16% to 18% by 2025. The
target would represent "more than 5 points margin expansion from
2021, mainly driven by growth in services across all divisions," it
said. Its propulsion division is expected to have the highest
margin, with an expected recurring operating margin of more than
20% by 2025.
Meanwhile, Safran expects its organic revenue growth to reach at
least 10% at a compound annual growth rate from 2021 to 2025, with
civil aftermarket activities growing around 15%, it said.
It also said that in 2023, it expects to resume its "historical
practice" of distributing 40% of its earnings to shareholders
through dividend, and that the board of directors will review this
dividend practice beyond 2023.
"A portfolio review, conducted after three years of experience
since their acquisition, concluded that 70% of the former Zodiac
Aerospace businesses are core and 30% under assessment," Safran
said. Safran acquired Zodiac Aerospace in 2018.
Further divestments and bolt-on acquisitions are also considered
after the portfolio review, it said.
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
December 02, 2021 02:57 ET (07:57 GMT)
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