Aircraft seats are core to Safran’s business, but the French aerospace giant continues to eye eventual divestment of certain non-core cabin interiors activities, management confirmed during a conference call to report earnings for the third quarter and the first nine months of 2025.
Approximately 30% of the former activities of Zodiac Aerospace — which was acquired by Safran in 2018 — are in line to be divested, as management declared both in 2021 and more recently as part of its Capital Markets guidance in 2024.
The majority of this 30% slice will be related to aircraft interiors, though Safran wants to “recover” the operational performance of those activities before starting the process of disposal.
“We are on that path,” Safran CEO Olivier Andriès said during the earnings call.
Indeed, in the third quarter, Safran’s overall aircraft interiors business saw a near 10% year-over-year increase in revenues, as demand for original equipment, such as galleys, inserts and inflight entertainment systems, continued apace including in support of airframers’ aircraft production ramp-ups and a vibrant aftermarket.
Safran allows its airline customers to lead the messaging around new contracts so we don’t always have full visibility into all its new wins until the products break cover in revenue service. But the company is also actively expanding its work packages with existing airline clients. For example, this year China Southern Airlines revealed it has broadened its contract with Safran and is now slated to bring the Safran RAVE IFE system to its new Airbus A350 and A321 twinjets.
Of note, Safran’s cabin equipment gains during the third quarter 2025 were “slightly offset” by lower business class seat deliveries due to certification challenges that are besetting the entire industry. Supply chain issues have also had an impact, though Safran has observed significant improvements on this front.
Management also admitted on the call that its pricing for seats has historically not extracted full value. Pricing has been improved on recent wins and this will materialize in EBIT in two years.
Despite some challenges, Safran has raised its overall 2025 earnings outlook after achieving robust revenue growth in both the third quarter and the first nine months of 2025 — driven by record deliveries for the LEAP aircraft engine which it produces via its CFM joint venture with GE.
Safran forecasts revenue growth of 11% to 13% for the full year, which now includes the anticipated net impact of tariffs. And it expects recurring operating income to hit EUR 5.1 to EUR 5.2 billion versus a prior estimate of EUR 5.0 to EUR 5.1 billion.
“The third quarter confirmed the strength of our civil engines aftermarket and saw record LEAP engine deliveries. Over the first nine months of the year, revenue grew by 15%, reflecting strong organic growth, notably in services across the board,” said Andriès.
“The integration of the flight control and actuation activities, acquired in July, is progressing smoothly. In light of this solid performance and despite the estimated impact of tariffs now taken into account, we are raising our full-year guidance on all metrics.”
Total revenue for the third quarter stood at EUR 7.85 billion, up 18.3% year-over-year, whilst revenue for the nine months ended 30 September climbed to EUR 22.6 billion, a 14.9% increase over the same period in 2024.
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Featured image credited to John Walton
