BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Safran (SAF.PA, 0IU8.L, SAFRF.PK) announced the company targets recurring operating income margin should trend to a 16% to 18% range by 2022. Organic revenue growth is projected to be in a mid-single digit range on average over the 2019-2022 period.
The company said free cash flow generation will remain a strong focus over 2018-2022 with EBITDA growing by approximately 50%. FCF is expected to grow every year. EBIT to FCF conversion should be above 50% each year, and trend above 60%, in 2022.
Safran said it will continue to increase cash returns to shareholders. The company said, over 75% of cumulated FCF is expected to be returned to shareholders over 2018-2022 through share buybacks and with the existing dividend practice. The Board will review the practice in 2020 to ensure growing return for shareholders.
Safran plans to maintain its disciplined capital allocation with the priority focus on organic development. The company does not currently expect to make any further major acquisitions.
Copyright RTT News/dpa-AFX