RBC: Safran to Post 'Strong' Q2 Results, Upgrade FY26 Guidance

05:41 AM EDT, 07/27/2026 (MT Newswires) -- RBC Capital Markets forecasts Safran (SAF.PA) to upgrade its full-year 2026 outlook amid expectations that the company will report "strong" second-quarter results on July 28. The French aircraft engines maker is anticipated to raise its guidance for adjusted revenue to mid-teens from low-mid-teens, supported by sustained growth at its civil aftermarket segment, according to RBC's aero engine earnings preview note released Monday. "Despite SAF's strong 1Q26 results, which featured civil AM spare parts up 29% and services up 43% (both well ahead of guide), the company maintained its guidance given the ongoing Iran conflict. The company has since signaled continued strength in the civil AM (consistent with GE), notably with continued elevated work scopes for the CFM56, as supply chain and parts availability continue to improve," the research firm wrote. "While we believe a guidance raise is largely expected by investors, we believe this would be a positive for investor sentiment as current consensus estimates are at the upper end of the current guidance. While we can appreciate focus is shifting to 2027 services growth, we do not expect management to comment much on the 2027 outlook)." The outperform recommendation on the stock and price target of 370 euros were left unchanged.