How Investors Are Reacting To Safran (ENXTPA:SAF) Launching Its First Overseas R&T Hub In UK

• In December 2025, Safran created Safran Tech UK, its first Research & Technology centre outside France, deepening its 90-year footprint in the country and supporting a UK business that now generates about £1.50 billion in annual revenue across 14 sites.
• The new centre focuses on electrification of propulsion and actuation systems and high‑performance composite materials, underlining how Safran is tying its UK expansion directly to aviation decarbonization, which already accounts for three‑quarters of its R&T spending.
• We’ll now examine how anchoring electrification and advanced materials R&T in the UK could influence Safran’s existing investment narrative and risk profile.

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Safran Investment Narrative Recap

To own Safran, you generally need to believe in long‑term demand for fuel‑efficient aircraft engines and high‑margin aftermarket services, supported by disciplined capital allocation. Safran Tech UK modestly reinforces the near term catalyst around lower‑emission propulsion, but does not materially change the key risk that heavy R&D and integration spending, including recent acquisitions, could pressure execution and margins if benefits are slower than expected.

The creation of Safran Tech UK lines up closely with Safran’s raised 2025 guidance, which leans on continued momentum in propulsion and advanced technology programs. The new UK R&T footprint sits alongside the Collins actuation and flight control acquisition, which together expand Safran’s mission‑critical systems offering and help support its broader investment case around fuel efficiency and aviation decarbonization.

Yet, despite this expansion, investors should be aware that concentration in a few major airframers and airlines still leaves Safran exposed if...

Read the full narrative on Safran (it's free!)

Safran's narrative projects €39.3 billion revenue and €5.0 billion earnings by 2028. This requires 10.2% yearly revenue growth and about a €0.7 billion earnings increase from €4.3 billion today.

Uncover how Safran's forecasts yield a €328.67 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community currently see Safran’s fair value between €231.86 and €328.67, underlining how far views can differ. Set against that spread, the heavy R&D and integration commitments around electrified propulsion and advanced materials could meaningfully shape how these differing expectations play out over time, so it is worth comparing several of these perspectives before forming a view.

Explore 6 other fair value estimates on Safran - why the stock might be worth 21% less than the current price!

Build Your Own Safran Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Safran research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Safran research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Safran's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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