GE Aerospace Partner Safran Rises On Rosy Guidance For 2026 And Beyond

French jet engine manufacturer Safran surged on Friday after it provided an updated outlook, as the company anticipated a rosy several years for its business, including its joint venture with GE Aerospace (GE).

On Friday, Safran’s U.S. -listed shares, which trade over the counter under the ticker SAFRY, were up around 8% in the morning hours. Meanwhile, its main shares listed on the Euronext Paris exchange closed the day up 8%.

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Safran Earnings

Safran produces jet engines in a joint venture with GE Aerospace under the brand name CFM International. Both Boeing (BA) and Airbus (EADSY) buy Safran engines, making it a critical player in the aviation industry’s supply chain.

On Friday, GE Aerospace shares ticked up around 1%, as they neared a breakout. Boeing and Airbus both rose a little more than 1%.

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Investors appeared to excuse the earnings and revenue miss for full-year 2025. Instead, the updated guidance for 2026 and through 2028 drove the stock higher. Safran appears poised to capitalize on the heavy demand for both its jet engines and the maintenance and repair services it offers to its customers.

Safran 2026 Outlook

For 2026, Safran forecasts revenue will grow in the low- to mid-teens to deliver between €6.1 billion and €6.2 billion euros in operating income ($7.25 billion to $7.36 billion). It expects free cash flow for 2026 to be in a range of €4.4 billion to €4.6 billion ($4.4 billion to $5.23 billion).

That level of growth would be a continuation of this year’s results. In 2025, Safran reported a 14.7% increase in revenue to $37.21 billion. Diluted earnings per share rose roughly 4% to $9.03.

Both of those numbers fell short of analyst expectations. Wall Street was looking for revenue of $31.35 billion and EPS of $9.78, according to FactSet.

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But the earnings miss had virtually no effect on the stock. Instead, much of the attention was on Safran’s promising outlook.

The company also raised its long-term outlook through 2028. Safran now expects a compound annual growth rate between 2024 and 2028 of 10%, up from an earlier forecast of high single digits. The company projects free cash flow of $24.94 billion over the same period, which is an increase from its previous range of between $17.82 billion and $20.19 billion.

Aviation Stocks Rise

Aviation parts suppliers like Safran have had excellent starts to the year. The industry as whole has been buoyed by twin factors. Airlines are placing huge orders with Boeing and Airbus. And both manufacturers have gargantuan backlogs.

As Boeing and Airbus secure more new business, they naturally need more jet engines, which boosts Safran’s business. But as their backlogs grow and they take longer to deliver new jets to their customers, that means existing planes have to stay operational for longer. When that happens, those planes need more maintenance and repair work — services that Safran provides.

Safran’s U.S. listed shares are up about 55% over the last 12 months and 13% year to date. Other suppliers have also had blistering starts to 2026. Howmet (HWM), which supplies Safran with turbine blades, is up over 20% this year. The fuel system components supplier Woodward (WWD), which bought Safran’s North American defense business last July, has gained around 25% in 2026.

Meanwhile, repair shop FTAI Aviation (FTAI), which specializes in fixing CFM56 engines produced by Safran’s joint venture with GE Aerospace, is up more than 40%. The recently public StandardAero (SARO), another aftermarket aircraft repair company, rose about 7% over the course of this year.

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