Latest news with #Safran
News18
a day ago
- Business
- News18
India Explores Engine Deal With France's Safran For Advanced Tejas Mk2 Fleet
Last Updated: After Operation Sindoor, there is a renewed urgency to scale up production and delivery of advanced fighter jets, said defence officials India is exploring a possible collaboration with French aerospace giant Safran to develop jet engines for its next-generation Tejas Mk-2 light combat aircraft. While US-based GE Aerospace currently provides the F404-IN20 engines powering the Tejas Mk-1, supply delays have disrupted delivery schedules, creating challenges for Hindustan Aeronautics Limited (HAL) and slowing the Indian Air Force's efforts to strengthen its fighter fleet, senior defence officials told Moneycontrol. The delays have prompted India to reassess its options and seek additional partnerships that could speed up domestic engine development, they added. The Indian Air Force (IAF), which aims to operate 42 fighter squadrons, currently has just 31 active. Following the heightened security challenges after Operation Sindoor, there is a renewed urgency to scale up production and delivery of advanced fighter jets, said the officials, adding that defence planners are now prioritising alternatives to ensure engine availability and reduce dependence on any single supplier. The strategic reassessment also stems from concerns about the consistency of foreign technology transfers and supply chains. 'All viable options are being evaluated to meet the IAF's growing needs," a senior official told Moneycontrol. India's indigenous fighter program began gaining momentum with the IAF's first Tejas Mk-1 order in 2009-10, comprising 40 aircraft (32 fighters and 8 trainers). A second, much larger order for 83 Tejas Mk-1A jets was signed in 2021, valued at ₹48,000 crore. Deliveries were initially scheduled to begin in mid-2024, but delays in engine shipments from GE have pushed back timelines. GE has delivered one of the 99 F404 engines contracted in 2021, on top of the 65 engines supplied earlier for the Mk-1 fleet. The more advanced F414 engines—also from GE—are designated to power the Tejas Mk-2 variant and India's future fifth-generation Advanced Medium Combat Aircraft (AMCA). However, recurring delays and strategic concerns have brought Safran into focus as a potential partner, the officials said. If discussions succeed, the French firm may be involved in developing engines specifically for the Tejas Mk-2 platform. Future-Ready: The Tejas Mk-2 The Tejas Mk-2, a 4.5-generation fighter weighing approximately 17.5 tonnes, is slated to eventually replace ageing aircraft in the IAF fleet, including the Mirage-2000, Jaguar, and MiG-29. It promises greater range, payload, and versatility than its predecessor, making timely engine development critical. Officials noted that diversifying partnerships is not only about avoiding supply bottlenecks but also about acquiring the technical expertise necessary to build engines domestically. This aligns with India's broader goal under the 'Aatmanirbhar Bharat" initiative to reduce reliance on imported defence hardware. As India balances growing security imperatives with industrial ambition, a partnership with Safran—if finalised—could mark a turning point in the country's journey toward self-sufficiency in combat aviation. First Published: May 27, 2025, 23:51 IST
News18
2 days ago
- Business
- News18
Post Op Sindoor, India Eyes Partnership With France's Safran To Power Next-Gen Tejas Mk2 Jets
Post Op Sindoor, India Eyes Partnership With France's Safran To Power Next-Gen Tejas Mk2 Jets
Yahoo
5 days ago
- Business
- Yahoo
Bull of the Day: Safran (SAFRY)
Safran (SAFRY), a global aerospace and defense technology leader based in France, stands out as a rare long-term outperformer in the European equities landscape. The company specializes in aircraft propulsion, equipment, and defense systems, boasting strong competitive advantages through its technological expertise, deep relationships with global aerospace manufacturers, and exposure to high-barrier-to-entry markets. Safran's durable business model is backed by significant aftermarket services revenue, which provides a steady and recurring cash flow base. This year, the stock has surged 33%, handily outperforming both the broader European indices and US benchmarks. Its ascent is supported by two powerful macro tailwinds: the migration out of US dollar-denominated assets and renewed investor interest in European defense names, especially in light of shifting geopolitical priorities across the EU. What's more, Safran's long-term track record is equally impressive. Over the past decade, the stock has compounded at an annual rate of 15.1%, consistently outperforming major global benchmarks, even as European equities as a whole have struggled to keep pace with their U.S. counterparts. With strong price momentum, secular defense tailwinds, and a Top Zacks Rank to back it up, Safran is positioned as a very compelling investment opportunity going forward. Image Source: Zacks Investment Research As European defense budgets continue to surge, it's no surprise that analysts are taking a more bullish stance on key players in the region and Safran is at the top of that list. The company is widely viewed as a strategic beneficiary of the EU's renewed commitment to defense modernization and autonomy, particularly amid heightened geopolitical uncertainty and shifting NATO dynamics. Reflecting this favorable outlook, analysts have been steadily raising their earnings forecasts. Over the past 30 days, consensus estimates for Safran's current-year earnings have climbed by 5.45%, while projections for 2026 have increased by 4.87%. These upward revisions give Safran it Zacks Rank #1 (Strong Buy) rating, signaling improving earnings momentum and growing confidence in the company's ability to capitalize on structural tailwinds in aerospace and defense. Upward earnings revisions like these are often one of the most powerful catalysts for stock performance, and in Safran's case, they reinforce the company's position as a core holding for investors seeking exposure to both high barrier to entry aerospace manufacturers and long-term defense growth. Image Source: Zacks Investment Research Safran shares have clearly rerated higher, now trading at a forward earnings multiple of 34.7x, which is well above their 10-year median of 26.5x. While that might seem elevated at first glance, the valuation premium appears more justified in light of the sweeping geopolitical shifts driving defense spending across Europe. Importantly, this rerating isn't unique to Safran. The broader aerospace and defense industry is also seeing multiple expansion, with the sector average forward P/E climbing to 28.2x, also significantly above its long-term median of 21.7x. This signals a revaluation by the market, as investors increasingly favor companies with durable competitive advantages and exposure to rising global defense budgets. Adding to Safran's investment appeal is its robust earnings growth outlook. The company is expected to grow earnings at an annual rate of 19.5%, further supporting the case for its premium valuation and underscoring the company's long-term potential in both commercial aerospace and defense markets. Image Source: Zacks Investment Research Safran offers a rare blend of strong fundamentals, thematic tailwinds, and consistent execution. With rising earnings estimates, top-tier growth potential, and a strategic foothold in both commercial aerospace and defense, SAFRY remains a high-conviction idea, despite its premium valuation. For investors seeking long-term exposure to Europe's industrial resurgence and defense rearmament, Safran is a name worth owning. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Safran SA (SAFRY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Qatar Tribune
6 days ago
- Business
- Qatar Tribune
QFZ partners with Safran for aerospace innovation in Qatar
Tribune News Network Doha Qatar Free Zones Authority (QFZ) and Safran, an international high-technology group, operating in the aviation, defense and space markets, announced the establishment of Safran's corporate office in Qatar's free zones, laying the groundwork for a new era of innovation and excellence in aerospace and defense activities in Qatar and the region. The announcement follows an agreement between QFZ and Safran, signed by Sheikh Mohammed Bin Hamad Bin Faisal Al-Thani, CEO of QFZ, and Christophe Bruneau, Executive Vice President and General Manager, Military Engines at Safran Aircraft Engines, on the sidelines of their participation at Qatar Economic Forum 2025. The signing ceremony brought together high-ranking officials and representatives from both entities. Safran's establishment in QFZ marks an initial strategic move underscoring its commitment to support aerospace and defense activities in Qatar. The new corporate office establishes a clear pathway for Safran's future expansion, taking account of business growth, operational needs, and opportunities within the Qatari and regional markets. The office will be first operated by Safran Aircraft Engines and will serve as a center for its aircraft engines commercial and support activities, leveraging QFZ's fully integrated aerospace and defense platform to access key partners, new customers, and high-potential markets, benefitting from Qatar's unparalleled connectivity and strong supply chain capabilities. Safran's operations in Qatar's free zones support the company's wider vision to contribute to a safer and more sustainable world through environmentally friendly, comfortable and accessible air transport. The new facility is planned to form an integral part of Safran's extensive global network that spans 276 locations across 27 countries with over 100,000 employees. Sheikh Mohammed Bin Hamad Bin Faisal Al-Thani, CEO of Qatar Free Zones Authority (QFZ), commented on the occasion: 'Safran's presence in our free zones marks a pivotal step in reinforcing Qatar's position as a premier hub for innovation and collaboration in the aerospace and defense sector. This partnership is fully aligned with our mandate to accelerate economic diversification and sustainable development in alignment with Qatar's National Vision 2030 and Third National Development Strategy. Today, our multimodal transport ecosystem receives a significant boost, as we welcome yet another global leader into our industrial landscape. World-class companies continue to choose our free zones for the unparalleled competitive advantage they offer: seamless connectivity, strategic geographic location, and a pro-business environment, further fostering cross-border cooperation, knowledge exchange, and long-term capacity building.' Christophe Bruneau, Executive Vice President and General Manager, Military Engines at Safran Aircraft Engines, said: 'We are pleased to partner with Qatar Free Zones Authority and open this new office in this dynamic and attractive country, Qatar, in the GCC region. This decision reflects our engagement to strengthen our long-standing and trusted relationship with our customers and contribute to Qatar's economic growth and its aspirations under Qatar National Vision 2030. We are excited about the opportunities ahead and look forward to driving enhanced outcomes in the already flourishing aerospace sector in Qatar and the region.' As part of its long-term vision, QFZ is actively forging strategic partnerships with leading local and global enterprises to build a dynamic, innovation-driven ecosystem that promotes advanced technologies, research and industrial capabilities. By attracting world-class companies to its zones, QFZ continues to play a vital role in advancing Qatar's national development priorities while contributing to the growth of globally significant sectors.
Reuters
7 days ago
- Business
- Reuters
Boeing back in 'dynamic' production mode, engine supplier Safran says
PARIS, May 22 (Reuters) - U.S. planemaker Boeing (BA.N), opens new tab has returned to a more "dynamic" production profile after years of uncertainty surrounding setbacks to its 737 MAX passenger jet, the head of engine maker and key Boeing supplier Safran ( opens new tab said on Thursday. Production of the benchmark narrow-body jet stands at almost 38 a month, the ceiling imposed by U.S. regulators after the blowout of a door plug on an Alaska Airlines aircraft last year, Safran CEO ( opens new tab Olivier Andries told an annual meeting. Boeing Commercial Airplanes Vice President of Quality Doug Ackerman told reporters on Tuesday the planemaker expects to stabilize 737 MAX production at 38 airplanes a month over the next couple of months. Safran co-produces the world's most-sold jet engines with GE Aerospace (GE.N), opens new tab through their CFM International joint venture. CFM's LEAP engines power all Boeing 737 MAX and compete with Pratt & Whitney for airline contracts on the Airbus A320neo. Safran's upbeat tone on Boeing's progress towards restoring jet production contrasts with a more cautious perspective from one of the world's largest leasing firms earlier on Thursday. Boeing and Airbus ( opens new tab have made progress, but there is "a way to go" to get a stable, predictable production cycle, SMBC Aviation Capital CEO Peter Barrett said. Safran's Andries told shareholders that demand for aftermarket services for jet engines had risen in part due to delays in production of new aircraft, caused by snags in aerospace supply chains. Airbus has said CFM is itself one of two suppliers slowing down increases in its output in the first half of the year, while CFM has said it is confident of accelerating in the second quarter. The Airbus and Boeing versions of LEAP are different sizes of engine with a broadly different set of parts. Andries said Safran was meanwhile getting encouraging results from CFM's wind-tunnel and other tests to demonstrate technology for a successor to the LEAP engine called RISE, designed to reduce fuel consumption and emissions by 20%.
