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| Safran Aerosystems |
French aerospace manufacturer Safran anticipates a 15-20% increase in LEAP engine deliveries in 2025 as demand rebounds for the Airbus A320neo and Boeing 737 MAX.
LEAP Engine Delivery Forecast
Safran, in collaboration with CFM International, expects LEAP engine deliveries to grow to approximately 1,649-1,727 units in 2025, a recovery from the estimated 10% decline in 2024 deliveries from 1,570 units in 2023. The LEAP engine powers Boeing’s 737 MAX exclusively and competes with Pratt & Whitney’s PW1100G-JM for installation on Airbus’s A320neo jets.
The projected recovery remains tempered by:
- 737 MAX production slowdowns at Boeing.
- Turbine blade yield issues affecting the Airbus A320neo engine variant.
Aftermarket Revenue Outlook
Safran expects lower year-over-year revenue growth in its civil aftermarket segment for 2025:
- Spare parts revenue is forecast to grow in the mid-to-high single digits.
- Services revenue is projected to increase by mid-teens percentages.
This marks a slowdown compared to the mid-twenties growth rate anticipated for overall aftermarket revenues in 2024. From 2025 onward, Safran plans to split its aftermarket revenue reporting into spare parts and services to reflect the increasing share of service contracts.
Supply Chain Challenges Persist
While the aerospace supply chain is improving, Safran highlighted that full recovery is unlikely by 2025. The company cited supply chain production capability as the main risk to meeting its guidance. Safran reiterated these concerns in its October report and during its recent capital markets day.
Despite challenges, Safran’s cautious optimism aligns with the ongoing recovery in global aerospace manufacturing, supported by rising demand for narrowbody jets and sustained investment in engine technology.
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