Safran Raises 2026 Targets After Record H1 Margin, Boding Well for GE Aerospace JV
GE sits 38% above its 52-week low of $261.71.
Summary
Safran, GE Aerospace's partner in the CFM engine joint venture, posted a record first-half operating margin of 18.4% and raised its full-year revenue, profit, and LEAP delivery targets. H1 recurring operating profit of €3.24B beat consensus by 6%, driven by a 27.9% surge in civil engine spare parts sales. This follows GE Aerospace's own Q2 beat and guidance raise on July 16, reinforcing the strong aftermarket demand that benefits both partners. The raised LEAP delivery growth forecast to 'high teens' from 15% signals confidence in the narrow-body ramp, directly impacting CFM's output and GE's engine revenue. With GE's backlog at $210.8B and CFM securing record orders from BOC Aviation and IndiGo in recent weeks, the joint venture's momentum is a material positive for GE's commercial engines segment.
At the time of this announcement, GE was trading at $361.77 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $375.2B. The 52-week trading range was $261.71 to $382.97. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.