Safran Hikes Dividend After Surge in Profit on Strong Demand for Aircraft Parts

By Mauro Orru

Safran is raising its dividend after its profit and revenue jumped last year as the postpandemic recovery in air traffic translated into strong demand for narrowbody aircraft components.

The French aerospace-industry supplier on Thursday posted an adjusted net profit of 2.03 billion euros ($2.18 billion) for 2023, up 72% on year. Adjusted recurring operating income--the company's preferred measure of profitability--came in at EUR3.17 billion, up 31.5%.

"We remain committed to our capital allocation strategy by deploying our strong balance sheet towards organic investment, targeted M&A, share buybacks and 2023 dividend distribution at EUR2.20 per share," said Chief Executive Olivier Andries.

The dividend that Safran plans to propose at its May 23 shareholders' meeting represents a 63% increase over the EUR1.35 per share it paid for 2022. Free cash flow increased to EUR2.95 billion from EUR2.67 billion.

The group posted adjusted revenue of EUR23.20 billion for last year, up 21.9% in reported terms and 23.6% organically. In the fourth quarter, adjusted revenue jumped 14.3% in reported terms and 18% organically to EUR6.43 billion.

For 2024, Safran is targeting adjusted revenue of roughly EUR27.4 billion, with adjusted recurring operating income close to EUR4 billion and free cash flow of around EUR3 billion.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

February 15, 2024 01:23 ET (06:23 GMT)

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