Slides
Page 1
Q3 AND 9M 2026 REVENUE October 23, 2026 Olivier ANDRIES Chief Executive Officer Pascal BANTEGNIE Chief Financial Officer
Page 2
This document and the information therein are the property of Safran. They must not be copied or communicated to a third part y without the prior written authorization of Safran 2 SAFRAN - Q3 & 9m 2026 Revenue / October 23, 2026 FORWARD-LOOKING STATEMENTS This document contains forward-looking statements relating to Safran, which do not refer to historical facts but refer to expectations based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those included in such statements. These statements or disclosures may discuss goals, intentions and expectations as to future trends, synergies, value accretions, plans, events, results of operations or financial condition, or state other information relating to Safran, based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “would,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “possible,” “potential,” “predict,” “project” or other similar words, phrases or expressions. Many of these risks and uncertainties relate to factors that are beyond Safran’s control. Such factors may cause Safran’s actual results, performance or plans to differ materially from any future results, performance or plans expressed or implied by such forward looking statements. Therefore, investors and shareholders should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: uncertainties related in particular to the economic, financial, competitive, tax or regulatory environment; the risks that the new businesses will not be integrated successfully or that the combined company will not realize estimated cost savings and synergies; Safran’s ability to successfully implement and complete its plans and strategies and to meet its targets; the benefits from Safran’s plans and strategies being less than anticipated; the risks described in the Universal Registration Document (URD). The foregoing list of factors is not exhaustive. While the list of factors presented here is representative, no list should be considered a statement of all potential risks, uncertainties or assumptions that could have a material adverse effect on Safran’s consolidated financial condition or results of operations. Forward-looking statements speak only as of the date they are made. Safran does not assume any obligation to update any public information or forward-looking statement in this document to reflect events or circumstances after the date of this document, except as may be required by applicable laws. USE OF NON-GAAP FINANCIAL INFORMATION This document contains supplemental non-GAAP financial information. Readers are cautioned that these measures are unaudited and not directly reflected in the Group’s financial statements as prepared under International Financial Reporting Standards and should not be considered as a substitute for GAAP financial measures. In addition, such non-GAAP financial measures may not be comparable to similarly titled information from other companies. ADJUSTED DATA All figures in this presentation represent adjusted data(1) (except where noted). Safran’s consolidated income statement has been adjusted for the impact of: ▪ purchase price allocations with respect to business combinations. Since 2005, this restatement concerns the amortization charged against intangible assets relating to aircraft programs revalued at the time of the Sagem-Snecma merger. With effect from the first half 2010 interim financial statements, the Group decided to restate: ▪ the impact of purchase price allocations for business combinations, particularly amortization and depreciation charged against intangible assets and property, plant and equipment recognized or remeasured at the time of the transaction and amortized or depreciated over extended periods due to the length of the Group’s business cycles and the impact of remeasuring inventories, as well as ▪ gains on remeasuring any previously held equity interests in the event of step acquisitions or asset contributions to joint ventures ▪ the mark-to-market of foreign currency derivatives, in order to better reflect the economic substance of the Group’s overall foreign currency risk hedging strategy: ▪ revenue net of purchases denominated in foreign currencies is measured using the hedged rate, resulting from the exchange rate effectively obtained over the year under hedging strategies, including premiums on settled options, and ▪ all mark-to-market changes on instruments hedging future cash flows are neutralized ▪ The resulting changes in deferred tax have also been adjusted. ORGANIC GROWTH ▪ Organic variations were determined by excluding the effect of changes in scope of consolidation and the impact of foreign currency variations. ADDITIONAL INFORMATION Amounts shown on subsequent pages may not add due to rounding. Safran does not sponsor any American Depositary Receipt (ADR) facility or program in respect of its shares. Any ADR facility or program whatsoever in respect of Safran shares is “unsponsored” and has no ties whatsoever to Safran. Safran disclaims any liability in respect of any such facility or program. Disclaimer & foreword (1) See slide 13 for bridge with consolidated data
Page 3
This document and the information therein are the property of Safran. They must not be copied or communicated to a third part y without the prior written authorization of Safran 3 7,852 9,003 Q3 2025 Q3 2026 Adjusted revenueIn €M +14.7% +13.4% org. SAFRAN - Q3 & 9m 2026 Revenue / October 23, 2026 ▪ Robust Q3 performance in a complex environment ▪ Continuing solid aftermarket trends • Spare parts for civil engines up 17% (in $) in Q3 (+24% over 9 months) • Services for civil engines up 19% (in $) in Q3 (+32% over 9 months) ▪ Strong level of LEAP engine deliveries • 535 units in Q3, up 5% YoY • 1,565 units over 9 months, up 26% ▪ Strong momentum in defense • Significant growth in defense electronics • Further investment launched to expand capacity and meet demand ▪ FY 2026 outlook confirmed Q3 key highlights 22,621 26,574 9m 2025 9m 2026 Adjusted revenueIn €M +17.5% +17.9% org.
Page 4
This document and the information therein are the property of Safran. They must not be copied or communicated to a third part y without the prior written authorization of Safran 4 Business highlights SAFRAN - Q3 & 9m 2026 Revenue / October 23, 2026 Texas: turbojet capacity to double by 2028 with a new TR40 assembly line ArianeGroup: first successful M51.3 submarine launch and 6 additional Ariane 6 launches ordered by Amazon Turkish Airlines: MoU for >300 LEAP-1B engines, services for >600 and MSA for its future MRO shop SkyNaute selected for the Airbus A220, marking its debut in commercial aviation
Page 5
Q3 2026 REVENUE
Page 6
This document and the information therein are the property of Safran. They must not be copied or communicated to a third part y without the prior written authorization of Safran 6 FX SAFRAN - Q3 & 9m 2026 Revenue / October 23, 2026 ▪ 2026 hedge rate set at $1.12 ▪ $61.1bn hedge book(1) as of September 2026 ($59.5bn as of June 2026) (1) The hedge book includes barrier options with knock-out triggers (American or European) ranging from $1.17 to $1.35 representing a risk to the size of the book and to targeted hedge rates from 2026 onwards in case of sudden and significant exchange rates fluctuations (2) Annual net exposure capped at $17bn from 2027 onwards (working hypothesis) Note: Approx. 45% of Safran US$ revenue is naturally hedged by US$ procurement Estimated net exposure(2) ($bn) 16 17 17 17 2026e 2027e 2028e 2029e 2030e €/$ hedge rate target 1.12 1.12 1.12 1.12 – 1.14 n.d. Spot rate €/$ Q3’25 Q3’26 Average spot rate 1.17 1.15 €/$ 9m’25 9m’26 Average spot rate 1.12 1.16
Page 7
This document and the information therein are the property of Safran. They must not be copied or communicated to a third part y without the prior written authorization of Safran 7 Q3 2026 revenue SAFRAN - Q3 & 9m 2026 Revenue / October 23, 2026 Revenue ▪ Currency: 1.1% • €/$ spot rate: 1.15 in Q3’26 (1.17 in Q3’25) ▪ Scope: +0.2% • Including 1 month contribution of Actuation and flight controls business offset by Safran Passenger Innovations divestment 7,852 8,903 9,0031,051 84 15 Q3 2025 Organic growth Q3 2026 at Q3 2025 scope & FX Currency impact Change in scope Q3 2026 itleIn €M +13.4% org. +14.7%In €M +13.4% org. +14.7% +13.4% org. +14.7% +13.4% org. +14.7%
Page 8
This document and the information therein are the property of Safran. They must not be copied or communicated to a third part y without the prior written authorization of Safran 8 Adjusted data (In €M) Propulsion 4,044 4,628 14.4% 13.2% Equipment & Defense(1) 3,004 3,623 20.6% 15.7% Aircraft Interiors(1) 802 751 (6.4)% 5.8% Others 2 1 - - Safran 7,852 9,003 14.7% 13.4% Q3 2025 Q3 2026 Change Organic Change SAFRAN - Q3 & 9m 2026 Revenue / October 23, 2026 Q3 2026 revenue per activity ▪ Propulsion ▪ Civil engines o 535 LEAP deliveries (up 4.7% yoy and 4.9% seq.) o Spare parts in $ up 17.0% driven by both CFM56 and LEAP o Services in $ up 19.0% supported by LEAP RPFH ▪ Military revenue down (phasing of Rafale deliveries) ▪ Helicopter turbines revenue up both for OE and services ▪ Equipment & Defense ▪ OE: +16.2% led by o Defense: significant growth, notably in AASM HAMMER, optronics, inertial navigation systems, and missile seekers o Power distribution systems (787, A350), electrical systems (on both Airbus and Boeing), and nacelles (A320neo) ▪ Services: +14.7% led by nacelles (A320neo) and actuation ▪ Aircraft Interiors ▪ OE: +4.4% notably on business class seats (volume and pricing) ▪ Services: +8.0% mainly driven by Seats (volume and pricing), with Cabin also contributing, notably in Middle East, Europe and the Americas (1) Organic change includes the transfer of Safran Ventilation Systems activities from Aircraft Interiors to Equipment & Defense. Before the transfer, organic growth is 14.1% for Equipment & Defense and 11.6% for Aircraft Interiors
Page 9
This document and the information therein are the property of Safran. They must not be copied or communicated to a third part y without the prior written authorization of Safran 9 SAFRAN - Q3 & 9m 2026 Revenue / October 23, 2026 Other items ▪ Update on share buyback program • €875m purchased between January and July (c. 2.8m shares) • €375m buyback tranche launched on September 21 and completed on October 20 (c. 1.2 million shares) • As of today, Safran owns 4 million shares (1% of capital share) to be cancelled by year-end ▪ Proposed extension of the French corporate surtax • 2027 draft Finance Bill proposes extending the French corporate surtax in 2027 • Potential impact for Safran in 2027 : ~€400-500 million of cash outflow depending on final rate (31.4% or 41.2%) ▪ Credit rating • On September 14, 2026, Standard & Poor’s revised upwards its long-term issuer credit rating on Safran and its rating on the senior unsecured debt to ‘A’ with a stable outlook (from ‘A-‘ with a positive outlook) ▪ Save-the-date • IFRS18 workshop - December 3, 2026(1) : implementation in Safran’s financial statements (1) from 8:30am to 9:30am CET
Page 10
FY 2026 OUTLOOK
Page 11
This document and the information therein are the property of Safran. They must not be copied or communicated to a third part y without the prior written authorization of Safran 11 SAFRAN - Q3 & 9m 2026 Revenue / October 23, 2026 FY 2026 outlook confirmed ▪ Civil engines • LEAP deliveries up high-teens • Spare parts revenue (in $) up mid-twenties • Services revenue (in $) up mid-twenties ▪ Free Cash Flow • Including an estimated ~€(500)M impact of French corporate surtax • Subject to payment schedule of some advance payments and the rhythm of payments by state-clients Revenue up mid-teens Recurring operating income €6.4 - 6.5bn Free Cash Flow €4.7 - 4.9bn ▪ FX • €/$ spot rate: 1.15 • €/$ hedge rate: 1.12 ▪ Scope • Including Collins’ actuation and flight control business • Excluding Safran Passenger Innovations ▪ Watch item • Supply chain production capabilities • Potential impact of the Middle East conflict Main assumptions
Page 12
Pour changer d’image : • Faire un clic droit sur la diapositive • Cliquer sur « Mise en forme de l’arrière plan » • Choisir l’image souhaitée (1920x1080px) To change the visual: • Right click on the slide • Click on “Format Background” • Import a visual from your computer (1920x1080px) APPENDIX
Page 13
This document and the information therein are the property of Safran. They must not be copied or communicated to a third part y without the prior written authorization of Safran 13 Q3 2026 (In Euro million) Deferred hedging gain (loss) Revenue 8,890 113 - - - 9,003 PPA impacts - other business combinations Consolidated revenue Hedge accounting Business combinations Adjusted revenue Re-measurement of revenue Amortization of intangible assets - Sagem/Snecma SAFRAN - Q3 & 9m 2026 Revenue / October 23, 2026 Q3 and 9m 2026 consolidated and adjusted revenue 9m 2026 (In Euro million) Deferred hedging gain (loss) Revenue 26,135 439 - - - 26,574 Re-measurement of revenue Amortization of intangible assets - Sagem/Snecma PPA impacts - other business combinations Consolidated revenue Hedge accounting Business combinations Adjusted revenue
Page 14
This document and the information therein are the property of Safran. They must not be copied or communicated to a third part y without the prior written authorization of Safran 14 Units % Units % LEAP engines 511 535 24 5% A320 landing gear sets 166 192 26 16% CFM56 engines 15 12 (3) (20)% A320neo nacelles 186 224 38 20% High thrust engines 55 86 31 56% A320 emergency slides 1,186 1,228 42 4% Helicopter engines 192 213 21 11% A330neo nacelles 14 17 3 21% M88 engines 7 0 (7) (100)% A350 landing gear sets 9 10 1 11% A350 lavatories 126 102 (24) (19)% 787 landing gear sets 18 21 3 17% 787 primary power distribution systems 97 180 83 86% Small nacelles (bizjet & regional jets) 195 241 46 24% Business class seats 428 635 207 48% Number of units delivered Q3'25 Q3'26 YoY change Number of units delivered Q3'25 Q3'26 YoY change Quantity of products delivered on major aerospace programs – Q3 SAFRAN - Q3 & 9m 2026 Revenue / October 23, 2026
Page 15
This document and the information therein are the property of Safran. They must not be copied or communicated to a third part y without the prior written authorization of Safran 15 Units % Units % LEAP engines 1,240 1,565 325 26% A320 landing gear sets 486 507 21 4% CFM56 engines 41 34 (7) (17)% A320neo nacelles 493 625 132 27% High thrust engines 162 221 59 36% A320 emergency slides 3,318 3,549 231 7% Helicopter engines 520 530 10 2% A330neo nacelles 50 47 (3) (6)% M88 engines 17 33 16 94% A350 landing gear sets 32 33 1 3% A350 lavatories 289 411 122 42% 787 landing gear sets 48 63 15 31% 787 primary power distribution systems 290 480 190 66% Small nacelles (bizjet & regional jets) 556 634 78 14% Business class seats 1,666 1,917 251 15% 9m'25Number of units delivered 9m'25 9m'26 YoY change Number of units delivered 9m'26 YoY change Quantity of products delivered on major aerospace programs – 9m SAFRAN - Q3 & 9m 2026 Revenue / October 23, 2026
Page 16
This document and the information therein are the property of Safran. They must not be copied or communicated to a third part y without the prior written authorization of Safran 16 (1) Retrofit is included in OE OE / Services revenue split SAFRAN - Q3 & 9m 2026 Revenue / October 23, 2026 OE Services OE Services Propulsion 4,083 7,503 4,846 8,959 % of revenue 35.2% 64.8% 35.1% 64.9% Equipment & Defense 5,181 3,431 6,412 4,143 % of revenue 60.2% 39.8% 60.7% 39.3% Aircraft Interiors(1) 1,503 915 1,320 887 % of revenue 62.2% 37.8% 59.8% 40.2% REVENUE Adjusted data (in €M) 9m 2025 9m 2026 OE Services OE Services Propulsion 1,460 2,585 1,563 3,065 % of revenue 36.1% 63.9% 33.8% 66.2% Equipment & Defense 1,818 1,186 2,234 1,388 % of revenue 60.5% 39.5% 61.7% 38.3% Aircraft Interiors(1) 503 299 440 311 % of revenue 62.7% 37.3% 58.5% 41.5% Q3 2025 Q3 2026REVENUE Adjusted data (in €M)
Page 17
This document and the information therein are the property of Safran. They must not be copied or communicated to a third part y without the prior written authorization of Safran 17 ▪ Spare parts (expressed in $) ▪ This non-accounting indicator (non-audited) comprises “Spare parts” revenue (in USD terms) for all civil aircraft engines (CFM56, LEAP , high-thrust engines) ▪ Services (expressed in $) ▪ This non-accounting indicator (non-audited) comprises “Services” revenue (in USD terms) for all civil aircraft engines (CFM56, LEAP , high-thrust engines; RPFH and internal T&M) Definitions SAFRAN - Q3 & 9m 2026 Revenue / October 23, 2026