Safran Expects Significant Growth in LEAP Engine Deliveries for 2025

Recovery Driven by Rising Demand for Narrowbody Jets
French aerospace manufacturer Safran, in collaboration with CFM International, is projecting a 15-20% increase in LEAP engine deliveries in 2025. The rise is fueled by the growing demand for key narrowbody jets, particularly the Airbus A320neo and Boeing 737 MAX, which are powered exclusively by the LEAP engine. Safran expects deliveries to reach between 1,649 and 1,727 engines, a notable rebound following a 10% decline in 2024.

Challenges to Meet Growth Targets Amid Production Issues
Boeing’s Production Slowdown and Turbine Blade Yield Problems
Despite the positive forecast, Safran acknowledges production challenges that could temper the delivery growth. Boeing’s ongoing production slowdowns with the 737 MAX, along with persistent turbine blade yield issues for the A320neo engine variant, are potential risks that could impact the company’s ability to meet its 2025 delivery goals. These issues are slowing down the overall recovery in the market.

Aftermarket Revenue Growth Expected to Slow in 2025
Modest Growth Forecast for Spare Parts and Services
In addition to the LEAP engine delivery forecast, Safran has revised its civil aftermarket revenue growth expectations for 2025. The company expects spare parts revenue to increase by mid-to-high single digits, while services revenue is forecast to grow in the mid-teens percentages. This represents a slowdown compared to the robust growth seen in 2024, when aftermarket revenues grew at a mid-twenties pace due to strong demand and a rising share of service contracts.

Supply Chain Challenges Persist as Key Risk
Improvement Expected, but Full Recovery Unlikely by 2025
Although supply chain conditions are improving, Safran has warned that a full recovery will not be realized by 2025. The company has highlighted production capacity limitations within the aerospace supply chain as a primary concern. Safran has repeatedly emphasized this risk in its reports and at its capital markets day event, underlining the challenges still facing global aerospace manufacturing despite the increasing demand for narrowbody jets and the continued investment in engine technology.