Safran hikes forecasts after strong Q3 for jet engine services

PARIS, Oct 24 (Reuters) - French aerospace group Safran SAF.PA raised full-year forecasts on Friday as it posted higher-than-expected third-quarter revenues, led by its core jet engine division.

The company, which co-produces LEAP jet engines with GE Aerospace GE.N through their CFM venture, said it had achieved a "strong catch-up" on delayed deliveries in the quarter, shipping more than in any previous quarter.

Safran said its third-quarter revenue rose 18.3% to 7.85 billion euros ($9.15 billion). Propulsion revenues grew 25.6%, with widely watched aftermarket, or services, up 21.1%.

Services for civil engines rose 24.2% in dollar terms.

Analysts were on average expecting quarterly revenues of 7.59 billion euros, according to a consensus compiled by the company.

Engine makers have seen strong demand for spares and parts as airlines fly older planes for longer, due in part to congestion at maintenance centres and delayed jet deliveries from Airbus AIR.PA and Boeing BA.N.

Safran said it was upgrading its revenue growth forecast for the full year to between 11% and 13% from a previous forecast of "low-teens." A French version of its earnings release clarified that the forecast had previously stood at 10% to 12%.

It also raised the forecast for operating income to 5.1 billion to 5.2 billion euros from a previous range of 5.0 billion to 5.1 billion and upgraded its free cash flow forecast to a range of 3.5 billion to 3.7 billion euros from 3.4 billion to 3.6 billion.

All targets now include the impact of tariffs.

Safran followed GE Aerospace in lifting 2025 growth forecasts for LEAP deliveries to more than 20% from 15% to 20%.

($1 = 0.8575 euros)