Europe’s Industrial Crown Jewel That China Has Failed To Copy For 20 Years | VisualEconomik EN

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The analysis focuses on Safran's financial performance and its position in the aviation industry. The company's stock price has shown significant growth over the last decade, driven by strong performance in its propulsion and defense sectors. The propulsion division has a turnover of €15.7 billion, growing at 20% annually since 2020, while the equipment and defense division contributes €12.3 billion and grows at 16% annually. The interiors division, though smaller, contributes €3.3 billion and grows at 12% annually, leading to a gross margin of 46%. The "Power by the Hour" model, where airlines pay a fixed fee per flight hour, aligns incentives by ensuring engine reliability and minimizing downtime. CFM International, a joint venture between Safran and GE Aerospace, dominates the single-aisle aircraft engine market, powering over half of the global fleet. The LEAP engine, its successor, is the fastest-selling engine in aviation history. Safran's position is further strengthened by its role as the sole supplier for critical aircraft models like the Boeing 737 MAX and COMAC C919, and a significant supplier for the Airbus A320neo. The company's low debt levels and high operating margins, improving from 4% in 2020 to 16.6% in 2025, indicate strong financial health and a favorable outlook. This robust financial foundation and market dominance suggest a continued upward trajectory for the stock.

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