Safran’s LEAP Engine Deliveries Drop in 3Q Amid Boeing and HPT Challenges

Safran

French aerospace manufacturer Safran, through its joint venture CFM International with GE Aerospace, reported a decline in LEAP engine deliveries in the third quarter of 2024. The decrease is attributed to lower deliveries of LEAP-1B engines to Boeing, coupled with high-pressure turbine (HPT) blade yield issues affecting the Airbus variant.

Key Delivery Figures

• Total LEAP Engines Delivered: 365, down by 24 units from the same period last year.
• Sequential Growth: Deliveries increased by 68 units compared to the second quarter due to improved HPT yield.

Boeing’s reduced 737 Max production—driven by systemic production issues, a federal limit, and ongoing labor strikes—has created a surplus of LEAP-1B inventory. Safran estimates Boeing's excess stock to be in the “three-digit” range but refrained from providing specifics.

Developments in HPT Blade Technology

• A new HPT blade for the LEAP-1A is expected to receive certification in the coming weeks, with initial shipments ready for the maintenance, repair, and overhaul (MRO) market.
• The LEAP-1B blade is scheduled for certification by the end of 2025.

Airbus and Safran’s Production Adjustments

• Safran reported a buildup of low-pressure modules due to limitations on LEAP engine production.
• It remains cautious about destocking to ensure readiness for anticipated production ramp-ups at Airbus and eventually Boeing.

Landing Gear and Nacelle Deliveries

• A320 Landing Gear: 142 units delivered, down by 11 units year-on-year.
• A350 Landing Gear: Flat at 11 units, though below pace.
• A320neo Nacelles: Deliveries increased by 25% to 159 units.
• 787 Landing Gear: More than doubled to 14 units, up from six a year earlier, as unaffected by Boeing’s 737 Max issues.

Financial Highlights

Safran’s civil aftermarket performance supported strong financials, with:

• Revenues up 14% to €6.6 billion ($7.1 billion).
• A 20% rise in propulsion aftermarket services, reflecting robust demand for engine maintenance and repairs.

Outlook

Safran expects the Boeing strike to resolve in the coming weeks but acknowledges that full supply chain normalization won’t occur until after 2025. The company is closely monitoring 20 critical suppliers to ensure future stability.