• In recent days, Safran’s CEO confirmed that fourth-quarter LEAP engine deliveries are expected to match third-quarter levels, while also noting active discussions over supplying Boeing 737 engines to a Turkish airline and announcing a €200 million investment in Moroccan engine manufacturing.

• This move positions Morocco as a new entrant among the few countries capable of full aircraft engine production and responds to growing aerospace demand, while Safran has also updated its 2025 outlook to reflect tariff impacts for the first time.

• We’ll now explore how Safran’s Moroccan manufacturing expansion and solid engine production outlook influence its investment narrative.

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Safran’s investment case rests largely on sustained global demand for narrowbody jet engines and recurring aftermarket revenues, supported by its technology and cost efficiency improvements. The latest confirmation of steady LEAP engine deliveries into the fourth quarter helps maintain near-term momentum for one of Safran’s main business drivers, although it does not fully dispel the supply chain risks that have occasionally pressured output and margins.

Of the recent announcements, the €200 million Morocco manufacturing expansion stands out, as it enhances Safran’s global production capacity and brings another potential lever against supply chain constraints. This move is especially relevant in the context of currently robust commercial demand and the need to reduce overreliance on any single production hub.

Yet, in contrast to the strong delivery signals, investors should remain aware of continuing risks related to labor or component shortages that could disrupt manufacturing and limit upside opportunities…

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Safran’s outlook anticipates €39.3 billion in revenue and €5.0 billion in earnings by 2028. This is based on a forecasted annual revenue growth rate of 10.2% and a €0.7 billion earnings increase from current earnings of €4.3 billion.

Uncover how Safran’s forecasts yield a €320.35 fair value, a 5% upside to its current price.

Six community fair value estimates for Safran range from €220.06 to €320.35, highlighting wide differences in outlook. While many see opportunity in global air travel trends, others point to persistent supply chain risk as a key concern for future returns.

Explore 6 other fair value estimates on Safran – why the stock might be worth 28% less than the current price!