PARIS (dpa-AFX) - French aircraft equipment manufacturer Safran SA (SAFRF.PK) on Thursday confirmed its fiscal 2024 outlook, and issued guidance for fiscal 2025 and 2028, expecting growth in profit and revenues.
The company added that it is increasing shareholder returns, representing around 70% of Free Cash Flow or FCF over '24-'28. The company noted 40% dividend payout and further 5 billion euros share buybacks to be cancelled over '25-'28.
In Paris, Safran shares were losing around 5% to trade at 217.20 euros.
Ahead of its 2024 Capital Markets Day, Safran said it is committed to delivering sustainable growth in earnings and cash flows.
For fiscal 2024, the company continues to expect revenue to be 27.1 billion euros.
For fiscal 2025, at constant scope, the company projects around 10% revenue growth, 4.7 billion euros to 4.8 billion euros recurring operating income and 2.8 billion euros to 3.0 billion euros FCF generation.
Further for fiscal 2028, at constant scope, the company projects to deliver record performance with high single digit CAGR '24-'28 revenue growth, and 6 billion euros to 6.5 billion euros recurring operating income in 2028.
CEO Olivier Andriès said, 'Our 2028 financial ambition reflects our confidence in sustained value creation, driven by the ramp-up for both OE and MRO markets, the smooth aftermarket transition from CFM56 to LEAP, and the profitable growth trajectory for both Equipment & Defense and Aircraft Interiors. Our robust Free Cash Flow generation will enable us to increase shareholder return while investing in growth and innovation to prepare for next-generation aircraft and decarbonization.'
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