By Mauro Orru

Safran is launching a share buyback program of up to 1 billion euros ($1.11 billion) and raised its guidance for the year after posting improved earnings and revenue in the first half, as narrowbody air traffic is translating into strong demand for spare parts.

The French aerospace-industry supplier on Thursday posted adjusted revenue of EUR5.68 billion for the three months ended June 30, up 26.5% in reported terms and 27% organically.

"We are on track to meet our delivery commitments despite continuing industry-wide supply chain challenges," Chief Executive Olivier Andries said.

In the first half, adjusted recurring operating income, a closely watched metric that excludes items such as capital gains or impairments, came in at EUR1.40 billion, up 33% in reported terms and 27.3% organically.

Free cash flow fell to EUR1.46 billion from EUR1.67 billion.

For the year, Safran now expects adjusted recurring operating income of roughly EUR3.1 billion compared with about EUR3 billion it previously expected, and free cash flow of at least EUR2.7 billion as opposed to at least EUR2.5 billion previously. It continues to expect adjusted revenue of at least EUR23 billion.

Safran is aiming to complete its buyback program by the end of 2025.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

July 27, 2023 01:20 ET (05:20 GMT)

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