Safran SA - ADR

**Strong Revenue Growth**: Safran reported a 17.4% growth in revenue for the first nine months of 2024, reaching approximately €20.5 billion. This was largely driven by a 26.2% increase in civil aftermarket services, reflecting robust demand and operational resilience in the face of supply chain constraints. Q3 revenue alone was €6.6 billion, up 14% year-over-year, indicating consistent performance.

**Revised Full-Year Guidance**: The company has updated its full-year 2024 revenue forecast to around €27.1 billion (down from €27.4 billion) and raised its EBIT target to €4.1 billion, an increase from close to €4 billion. This reflects a strong performance despite downward revisions in OE (Original Equipment) deliveries, specifically for narrowbody aircraft due to persistent supply chain bottlenecks.

**Challenges in LEAP Engine Deliveries**: LEAP engine deliveries have been impacted by supply chain issues, particularly with high-pressure turbine (HPT) blades, leading to revised expectations for a 10% decline in total LEAP engine deliveries in 2024. Although deliveries in Q3 improved sequentially, they remained below expectations due to ongoing challenges, which poses risks to the revenue outlook for the remainder of the year.