Safran Reaffirms Guidance as Q3 Sales Meet Consensus; Shares Drop 10%
SAFRY is trading near its 52-week low of $76.86 (15% above the low).
Summary
Safran posted Q3 organic sales growth of 13.4% to €9B, in line with the company-compiled consensus, with propulsion up 13.2% and aftermarket up 18.7%. The problem is the mix: Jefferies flagged that propulsion aftermarket growth slowed and missed expectations, and Barclays called spare parts slightly below expectations, making for a slightly underwhelming release. Management reaffirmed rather than raised FY2026 guidance — mid-teens revenue growth, recurring operating income of €6.4B-€6.5B and free cash flow of €4.7B-€4.9B — when Citi noted the market had been expecting further upgrades. That gap between expectations and delivery is what drove the 10% slide in European trading. CEO Olivier Andries pushed back on spare-parts weakness, saying full-year spare parts growth should rise about 25% year over year. SAFRF is the other listed line for the same company.
At the time of this announcement, SAFRY was trading at $88.14 on OTC in the Energy & Transportation sector, with a market capitalization of approximately $141.2B. The 52-week trading range was $76.86 to $106.71. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.