Zodiac Aerospace

Dec 2, 2021

12/02/2021 | 02:57am EST Message : By Olivia Bugault Safran SA said Thursday ahead of its capital markets day starting later today that it expects profit margin and revenue to grow through 2025, while it also disclosed other mid-term targets. The French defense-and-aerospace company said it expects its recurring operating income margin to reach 16% to 18% by 2025. The target would represent "more than 5 points margin expansion from 2021, mainly driven by growth in services across all divisions," it said. Its propulsion division is expected to have the highest margin, with an expected recurring operating margin of more than 20% by 2025. Meanwhile, Safran expects its organic revenue growth to reach at least 10% at a compound annual growth rate from 2021 to 2025, with civil aftermarket activities growing around 15%, it said. It also said that in 2023, it expects to resume its "historical practice" of distributing 40% of its earnings to shareholders through dividend, and that the board of directors will review this dividend practice beyond 2023. "A portfolio review, conducted after three years of experience since their acquisition, concluded that 70% of the former Zodiac Aerospace businesses are core and 30% under assessment," Safran said. Safran acquired Zodiac Aerospace in 2018. Further divestments and bolt-on acquisitions are also considered after the portfolio review, it said. Write to Olivia Bugault at olivia.bugault@wsj.com (END) Dow Jones Newswires