Safran SA (SAF) Earnings Call Transcript & Summary

Welcome to the Safran Half Year 2026 Results. At this time, I would like to turn the conference over to your host, Mr. Olivier Andries, Safran's CFO; and Pascal Bantegnie, Group CFO. Mr. Andries, please go ahead.

Good morning, everyone, and thank you for being with us today. So Q2 continued on the strong trends observed in Q1, resulting in an exceptional first half, marked by a stellar demand in the civil engine aftermarket, a strong ramp-up in LEAP and M88 engine deliveries and record financial performance. The Middle East conflict barely impacted our performance. Civil aftermarket activities remaining well above our pre-conflict forecast. Spare part sales for civil engines increased by 28% in dollar value. And civil engine services also grew by more than 40%. All this despite the geopolitical context in the Middle East. CFM56 continued to drive spare parts performance with the fleet benefiting from a low level of retirement, combined with a very strong demand for aftermarket. LEAP is also expanding with a fast-growing number of shop visits, significant workscope increase and more shop visits being performed by third-party maintenance, repair and overhaul shops. We delivered 1,030 LEAP engines in H1, a 41% increase year-on-year, aligning 4 consecutive quarters with over 500 deliveries. All of this translated into record financial performance. Revenue reached EUR 17.6 billion, up 20% on an organic basis. Recurring operating income climbed by 29% to EUR 3.2 billion, representing an unprecedented operating margin of 18.4%. Free cash flow was even stronger, up 43% to EUR 2.6 billion. Given this robust performance and the strong visibility in front of us, we are raising our full year guidance. Lastly, disciplined portfolio management remains a priority. We completed the divestment of Safran Passenger Innovation and of our 50% stake in EZ Air, our past joint venture with Embraer. Regarding Aubert & Duval, Airbus and Safran recently completed the acquisition of Tikehau Capital stake, further strengthening our objective to building a more resilient aerospace and defense supply chain. Turning to Slide 4. Safran is benefiting from strong commercial momentum across its civil businesses. We continue to ramp up our capacity to support growing demand and strengthen the resilience of our industrial footprint. In Mexico, we opened -- end of June, we opened a new LEAP maintenance shop in Querétaro and a new electrical wiring factory in Chihuahua. At Farnborough, LEAP confirmed its position as the engine of choice on narrow-body platforms as illustrated by the signature of an MoU by IndiGo for more than 1,000 LEAP-1A engine, our largest ever engine order to power its A320neo family fleet and support its new MRO facility. BOC Aviation also placed an order for up to 300 LEAP engines. The new LEAP Premier MRO license with IAG, and CFM, together with a full-fledged LEAP engine shop being developed in Singapore through our joint venture with Singapore Airlines will further expand maintenance capacity and strengthen the global LEAP ecosystem. We are also preparing the future of flight. Electra, a U.S. company selected Safran turbogenerator, Turbogen600 for its EL9 hybrid electric aircraft, a short and takeoff and landing aircraft with an initial order for 250 units. Turning to Slide 5. RISE technologies are now being matured towards ground and flight test demonstration this decade. Since CFM unveiled RISE in 2021, approximately 500 test campaigns and more than 5,000 endurance and dust cycles have been completed across Open Fan. Compact core and hybrid electric technologies, mobilizing more than 2,000 CFM engineers in both sides of the Atlantic Ocean. The program is moving from concept to reality. The compact core modules, the Open Fan blade and the OGV airfoil have passed preliminary design reviews, enabling the program to enter the detailed design, manufacturing and physical realization phase of the demonstrator, leveraging decades of expertise, including 4 composite fan blades in Safran. Mechanical and material tests are underway on blades and OGV, including impact, ingestion, fatigue, endurance, load, icing and vibration response. Wind tunnel campaigns have also demonstrated aeroacoustic performance above technology maturation objectives. Durability is being addressed earlier than ever in the new technology development cycle. More than 2,000 dust-ingestion cycles have already been completed on next-generation HPT airfoil in an engine core. A second campaign is now testing RISE HPT technologies in our more product representative LEAP-1B engine to assess their potential benefits for the fleet. On the fan system, the first high-speed low-pressure turbine has been tested for more than 1,000 hours, validating aerodynamic design and aerothermal performance. The next milestone is the preparation of a full-scale front module test in our new test cell at Villaroche, progressively building towards the low-pressure system, including the reduction gearbox. Finally, on hybrid-electric, Safran has launched the PHILEAS ground test campaign at Istres, a full-scale engine demonstrator with 2 electric machines installed on the high-pressure and low-pressure shafts with a campaign planned for approximately 6 months and nearly 300 hours. We are using our Silvercrest engine for that -- for those tests. Turning to Slide 6. Defense continues to show a particularly strong momentum. Eurosatory confirmed the depth of demand, which we are converting into major wins and partnerships. We are once again ramping up capacity in critical areas with major investment in hemispherical resonator gyroscope Inertial Navigation in [ Montluçon, ] in positioning navigation and timing equipment and optronics in Germany and optronics and surveillance and recognition system in Dijon, France. Numerous new partnerships were announced recently, supporting our global expansion as more than 80% of our defense electronics backlog is international. Safran joined Airbus, Destinus, MBDA Deutschland and Thales in signing a letter of intent to establish the Bliksem EXO consortium and develop a sovereign European exo-atmospheric interceptor against medium and intermediate range ballistic missiles. Finally, we are converting this demand into major wins. THUNDART is a key illustration with Safran and MBDA selected to provide France future long-range land strike capability with very strong export potential. We have seen a lot of European countries coming to us since this announcement. We also secured major contracts for JIM Compact, our portable electronics equipment and Skyjacker Advanced, which is our [ anti-UAV ] system. Pascal, the floor is yours.

Thank you, Olivier. Good morning, everyone. Today, I will guide you through the adjusted accounts, and you'll find a reconciliation to the consolidated statements in the appendix. So let's begin with the FX trends, which are highlighted on Slide 8. In the context of the ongoing Middle East crisis and its impact on the macro economy, volatility persisted during the first half with the dollar strengthening against the euro moving from 1.18 to 1.14. Given the level of activity observed in H1 2026, it is likely that we would need to revise upwards the volumes to be hedged for the remainder of the year and for future periods. This does not call into question the hedge risk targets shown in the graph, starting with 1.12 in 2026. Overall, our hedge portfolio continues to serve as a key protection mechanism, providing us with solid visibility on future dollar exposure despite currency volatility. Now let's turn to revenue and recurring operating income on Slide 9. Revenue reached EUR 17.6 billion in H1, representing a 19% increase on a reported basis and more than 20% organically. The negative currency impact of EUR 742 million reflects an average spot rate of 1.17 compared to 1.09 in H1 2025. This impact was partly offset by the scope effect, which had a positive impact of EUR 550 million, mainly due to the acquisition of Collins actuation and flight control activities and partially offset by the divestment of Safran Passenger Innovations. Recurring operating income rose by 29% to EUR 3.2 billion, significantly outpacing revenue growth. Despite some cost increases in certain materials, partly offset by tariff refunds, the margin improved by 140 basis points, reaching a record 18.4%. The main drivers of this performance were robust revenue growth, the outstanding performance of the civil engine aftermarket, strong defense activities and as usual, our sustained focus on operational excellence across the group. Moving on to Slide 10, you will find a summary of the income statement. One-off items amounted to minus EUR 177 million, which includes program impairment charges, M&A transaction costs and the outcome of commercial discussions concerning past operations. Net financial expense was EUR 123 million. This includes a positive EUR 57 million of net financial interest, reflecting our positive net cash position as well as EUR 188 million foreign exchange loss, which includes the impact of reassessing U.S. dollar provisions. The reported tax rate was 33%, which reflects a EUR 322 million impact from the French corporate surtax. Without this surtax, the effective tax rate would have been 22%. With the increased EBIT guidance, you should now expect nearly EUR 500 million impact for the full year, meaning an additional EUR 180 million in the second half from the surtax. Overall, net income attributable to the parent reached EUR 1.9 billion, up 21% year-over-year, resulting in earnings per share of EUR 4.63. Turning now to Propulsion on Slide 11. Revenue reached EUR 9.2 billion in H1, up 28% organically, driven by the strong momentum in both civil and military engines. In civil engines, aftermarket growth exceeded our expectation. Spare part sales grew by 28% in dollars, mainly supported by a continued favorable workscope mix on the CFM56, something we have seen since mid-2025 as well as a higher contribution from LEAP aftermarket with an increase in external shop visits. Pricing also supported growth on both CFM56 and LEAP. In addition, civil engine services were particularly strong, up 40% in dollars, led by LEAP RPFH contracts. It's important to note that the trigger to recognize LEAP-1B RPFH profit has not yet been reached. The introduction of the maverick blade is planned for later this year or early next year. On OE, we delivered 1,030 LEAP engines in the first half, up 41% year-over-year, including 24% growth in the second quarter. This marks the fourth consecutive quarters with over 500 deliveries, and you can expect further sequential growth in the second half. Military engines also contributed positively. As announced, Rafale production is ramping up from 2 aircraft per month in 2025 to 4 per month by 2029, resulting in M88 engine deliveries more than tripling in the first half. Revenue growth also benefited from a favorable customer mix and a solid level of services. Helicopter turbines benefited mainly from the aftermarket activity, while OE was slightly down due to ongoing supply chain challenges. Missile propulsion systems continue to grow, driven by increased deliveries. By the end of this year, we will have tripled our missile turbojet capacity compared to 2022. Recurring operating income reached EUR 2.3 billion, up almost EUR 500 million versus H1 2025. The margin increased by 120 basis points to 24.5% of sales, a record, exceeding our annual guidance of 22% to 24%, mainly thanks to the outstanding performance of the civil engine aftermarket and continued strength in military engine deliveries. Moving on to Equipment & Defense, Slide 12. Revenue reached EUR 6.9 billion in H1 2026, up 14% organically. The scope effect primarily reflects the full integration of the Flight Control and Actuation business. Organic growth also takes into account the transfer of Safran Ventilation Systems from Aircraft Interiors to Equipment & Defense. Without this transfer, organic growth would have been 12.4%. On the equipment side, we observed higher OE volumes across the board with particularly strong performance in nacelles for the A320neo. Electrical systems also delivered solid results, driven by strong demand for programs such as the 737 MAX, A320neo and the A350. Defense activities made a solid contribution as well, especially in inertial navigation systems, which recorded strong double-digit growth, along with robust performance in electronics and the Hammer guided bomb. Aftermarket services grew across all segments with especially strong growth in electrical systems, notably on the A380 and in nacelles for the A320neo. Recurring operating income reached EUR 907 million, up EUR 204 million year-over-year. The margin improved by 60 basis points to 13.1% or by 110 basis points to 13.6%, excluding the contribution from the Actuation business. All business units contributed to the strong overall performance, supported by higher volumes, improved pricing and continued focus on operations. Turning now to Slide 13 on Aircraft Interiors. Revenue reached EUR 1.5 billion, up 6.6% organically. When you exclude the transfer of Safran Ventilation Systems to Equipment & Defense, organic growth would have been 12.2%. In Cabin, aftermarket growth was led by spare parts, notably on the A350, A220 with good dynamics in all geographies. OE volumes also increased, driven by A350 lavatories as well as 737 and A320 galleys. In Seats, business class seats deliveries increased by 4% with a 21% catch-up in the second quarter. OE performance was also supported by a favorable pricing effect in line with the right pricing for value strategy that we presented at CMD. Aftermarket activities delivered good growth in both spare parts and services. Recurring operating income doubled to EUR 54 million, lifting the margin by 200 basis points to 3.7% despite the dilutive impact of the Safran Passenger Innovation divestment and the transfer of Safran Ventilation Systems. This margin expansion was driven by pricing on cabin and business classes and volume, spare parts. This performance confirms that Aircraft Interiors remains firmly on track with its road map for continuous margin improvement. Turning now to Slide 14. Free cash flow generation increased by EUR 800 million to EUR 2.6 billion, up 43% year-over-year, resulting in a very strong EBIT to cash conversion ratio of over 80%. This excellent performance was driven by a 24% increase in EBITDA as well as the positive changes in working cap. Indeed, inventory growth was more than offset by increases in advanced payments and deferred income, which benefited from defense-related advanced payments and deferred income related to the RPFH contracts on LEAP. It is worth highlighting that inventories grew at a slower rate than sales, allowing us to reduce our inventory DSO by 5 days. Income tax payments remained broadly stable as the cash impact of the French surtax will take place in the second half of the year. We continue to invest significantly to support our growth. Tangible CapEx reached EUR 750 million, up 15%, with spending focused on capacity expansion across the group, particularly for LEAP OE, MRO activities and defense electronics. Looking at Slide 15, Safran's net cash position remained almost stable at EUR 1.7 billion. 90% of the cash generated in the first half was used to pay the dividend of EUR 3.35 per share, totaling EUR 1.4 billion and to finance the share buyback program. In the first 6 months, we bought back 2.6 million shares for cancellation purpose. And looking specifically at the share buyback program, between Jan and July 2026, we repurchased around 2.8 million shares for cancellation. It's about 0.7% of the share capital for a total amount of EUR 875 million. These shares are scheduled to be canceled before year-end, and we also plan to launch an additional tranche in the coming weeks, which will be executed before the end of the year. M&A activity resulted in a limited net inflow of EUR 33 million, mainly reflecting the divestment of SPI, partly offset by smaller acquisitions, including Syntony, in inertial navigation. Finally, reflecting Safran's strong financial discipline, Standard & Poor's upgraded the outlook on Safran's A- credit rating to positive in July 2026. With that, I'll hand it over back to you, Olivier.

Thank you, Pascal. I am now on Slide 17. Building on our strong first half performance and sustained momentum across both Civil Aerospace and Defense, we are raising our 2026 outlook. Revenue should increase in mid-teens, above EUR 36 billion. Recurring operating income guidance is improved by EUR 300 million at midpoint to reflect better performance in civil aftermarket. Free cash flow guidance is improved by EUR 300 million at midpoint despite an increase of the estimated impact of the French corporate surtax. The revenue growth outlook for our 2 key indicators have been raised. Spare parts and services revenues are expected to be up in the mid-20s, while LEAP deliveries are now expected to be up in the high teens. Thank you, and we are ready now to answer to your questions.

[Operator Instructions] We are now going to proceed with our first question. And the questions come from the line of Olivier Brochet from Rothschild & Co.

I would have 2. First of all, on the margin in propulsion at 24.5%, which is quite exceptional. You have an increase in the LEAP deliveries and in services sales, which I would assume are dilutive. Could you share some color on the drivers for that performance in H1? And the second question is on the one-offs. Could you just give us a little bit more detail on what is within the propulsion number of minus EUR 134 million? And how much of that is cash rather than P&L?

Olivier, indeed, we recorded a stellar performance in margin in propulsion with a margin of 24.5%, exceeding our annual guidance of 22% to 24%, which was clearly driven by spare parts, notably on CFM56, but as well on LEAP. We benefited from the pricing effect on CFM56 that we had on 1st of August last year, but mainly from a very favorable workscope mix effect, meaning that airlines will spend a lot every time they come to maintain spare engines. And the second driver for this strong performance was the volume of spare engines that we delivered in H1. It's about 60% of the annual volume we expect to deliver spare engines for the full year. And I would even add a third item, which is a very good performance we enjoyed in the military engines, notably on the M88. As we said, we tripled the volume of engines we have delivered in H1 '26 compared to last year. Now looking to the one-off in propulsion. It's what we say on Slide 10. It's about the impact of the conclusion of commercial discussions that we had for long concerning past operations with some partners.

And is it cash or not cash?

The cash would be -- well, part of the cash will be at the end of this year and next year.

We are now going to proceed with our next question and the questions come from the line of Christophe Menard from Deutsche Bank.

I had 2. So for the full year, could you refresh a little bit the divisional EBIT margin guidance? I think you were last time mentioning Equipment & Defense to be slightly above 12.7%, but it seems that for the full year, it will be better. So that's the first question. And still in terms of the Equipment & Defense margin, which came out very strong in H1. You mentioned 110 basis point improvement linked to the structural business. What share of this is linked to defense and what is linked to electrical and nacelle in terms of margin improvement?

Christophe, so we are raising our full year outlook. So you -- one can expect that our margin should be slightly above what we communicated so far. Starting with propulsion, as we recorded a 24.5% operating margin in H1, I would expect the full year margin to be at least at the upper end of the 22%, 24% guidance, meaning around 24%, okay, which would be a point of improvement compared to what we had in 2025. In Equipment & Defense, we have always called for at least 50 basis points margin improvement including the Actuation business. Excluding the Actuation business, as we communicated back at the Capital Market Day in 2021, our target is to increase by at least 1 point the margin in that branch to reach 15% at the end of the day. Here again, as we had a strong margin in H1, I would expect to beat the 50 basis point margin improvement for the full year. And then on Aircraft Interiors, there have been a lot of changes in scope with the divestment of SPI with the transfer of Safran Ventilation System. But still, I would say, at least 1 point of improvement. And then on your specific question around Equipment & Defense. Defense is clearly a good contributor to the margin improvement. But as you rightly say, the nacelle business also enjoyed a pretty good growth momentum in profit. So I would say they will benefit at par to the margin improvement this year.

We are now going to proceed with our next question. And the questions come from the line of Ross Law from Morgan Stanley.

So the first is on the guidance upgrade in services to mid-20s. It implies a pretty aggressive deceleration in the second half, something in the sort of 10% low double-digit range. Can you just walk us through the key drivers of that? And then secondly, Airbus has indicated quite publicly that it wants to recalibrate the economic relationship between OE and aftermarket on the next-generation single aisle. I would be interested to hear how Safran thinks about this and whether you and your partner, GE would be willing to give up future aftermarket profits in return for better OE economics?

Ross, Olivier speaking. On the spare parts...

Services...

It was services, yes. Okay. It was services. Okay. Well, the main driver for the services growth is really the LEAP shop visit. The shop visit volume has increased by more than 30% compared to last year. This is basically this is just the consequence of the fact that the LEAP in service is simply growing. And also the workscope continues to increase on the LEAP as well. So this is the main driver for the services side. As Pascal has mentioned on the spare part side, the main driver for the growth has been the workscope. In fact, we have seen a higher proportion of heavy workscope, basically continuing the trend that has started in H2 2025. We've not been surprised by the volume of shop visits. It was as expected. So we confirm that we are going to be around 2,400 CFM56 shop visits. So no surprise on that. Pricing was obviously anticipated. So the main surprise, if you wish, which was well ahead of our expectation was about the workscope. So that's the main drivers.

If I may just add, Olivier. As you know, there is no impact on profits because whatever the revenues are, you know that from an accounting perspective, we have defined our strategy to release on the services, the portion of RPFH profit we want. So whatever the growth rate in H2, there will be no consequence on the EBIT.

Okay. So we have listened to the, let's say, Airbus communication as you did as well with an appetite basically to discuss the respective business model. As you know, on the engine side, when we invest on a brand-new engine development, we have to be quite patient to get our return because not only we spend a lot of money for the development of the engine, the industrialization, the ramp-up, getting into service and all that. On top of that, for years and years, when we deliver engines to the airframers, we do that at a loss. And we only make profit at the time when shop visits come up. So we have to wait quite a long time. So any potential discussion on business model has to be holistic, taking into account the OE side and the aftermarket side.

We are now going to proceed with our next question. And the questions come from the line of Sam Burgess from Goldman Sachs.

Maybe I'll just follow up on those last 2 questions with similar themes. So just on the workscope, looking forward, I mean, what do you see in terms of the evolution of this workscope as we move into H2 and then even beyond that into '27? Does this continue to be a tailwind and supportive? Or does it start to reverse at some stage? And then secondly, on the engine deliveries, I mean, they've been very, very strong in H1. Is there a possibility that we could see you maybe overdelivering to Airbus, particularly as we look towards '27, and we know that Airbus have been slightly out of pocket from the other supplier. Is there a possibility you could help them out?

Indeed, on workscope, in fact, interestingly, the workscope in 2025 has been mainly driven by material availability rather than demand. And the material availability does improve. And so basically, we are in a tailwind situation. And so we are indeed confident that the trend that we see now with, let's say, a significant proportion of shop visits with a heavy workscope is going to continue for at least the 2 next years in 2027 and 2028. This tailwind will go on for at least the next 2 years. On engine deliveries, we have revised up our guidance simply because we have gained confidence in our ability to deliver. We -- basically, with that, we are going to meet both Airbus and Boeing expectations as well as to deliver enough spare engines to the airlines in order to ensure that there's not going to be any aircraft on ground, which is a strong focus of ours, nothing is more frustrating for an airline that having bought an asset and having this asset grounded simply because there is an engine issue. So yes, in 2026, we are going to meet Airbus expectation. We are going to meet Boeing expectation. We are going to deliver what the market needs -- the airline market needs in terms of spare engines. And I can say that we are confident also in 2027 to meet both Airbus and Boeing expectation. Do we have enough, let's say, to offset some of the other guy, if I may say, lack of deliveries. This is -- I mean, if we can help in that respect, we would, obviously. But again, our first priority and our first commitment is to deliver on our promises, both Airbus and Boeing and the airlines.

And our next questions come from the line of Ian Douglas-Pennant from UBS.

Yes, it's Ian with UBS. I'm sorry to ask another question on workscope. But can you give us any metrics or anything -- any just more information or color to allow us to share your confidence that workscope will continue to be strong for the next couple of years and especially that the increase in material supply won't impact your ability to maintain price from here? I'll just leave it there.

Okay. Ian, so clearly, when we are discussing CFM56 aftermarket, demand exceeds supply today. So we continue to see substantial MRO capacity constraints, which is driving longer lead times and elevated workscope today. And the airlines, they learn from past crisis and they are looking to manage potential MRO capacity and supply chain risk and they come to -- when they come to maintenance, they tend to spend more than less. And that trend should continue not only in H2 this year, but as Olivier said, in '27 and '28, meaning that when you are discussing the revenue on CFM56 aftermarket, you need to consider, I would say, a flattish volume in number of shop visits, pricing power. This year, by the way, we will be in the mid- to high single-digit range, plus an increase in workscope. Another way to look at it, following the COVID crisis, we have seen a huge ramp-up in volume in terms of number of shop visits. And now it seems that we are seeing the, I would say, the other way of the green time effect that we had suffered from during the COVID time and airlines are spending more in order to get ready when the Middle East crisis starts and traffic resumes. So they don't want to lose time and idle their fleets. They want to take benefits of this period to maintain their engines and get ready when the market starts again very strongly.

And Ian, I would add that we see a very significant proportion of shop visit where basically the full scope of HPT blades and LLPs for the core, but also for the LP sections are replaced. So it's really a full scope of shop visit.

We are now going to proceed with our next question. And the questions come from the line of Milene Kerner from Barclays.

Congrats on a very strong set of results. So I have 2 questions. One, to follow up on Olivier's question. Your propulsion margin reached 24.5%. As you said, Pascal, that is above your target range of 22%, 24%. How should we think about the margin trajectory from here as workscope will remain elevated on CFM56? You're going to start booking the LEAP-B Maverick and you're going to have more LEAP shop visits that will be performed by third party? And then my second question is that you're now guiding to around EUR 6.5 billion recurring operating income. The updated 2028 target of EUR 7 billion to EUR 7.5 billion appears relatively close. Are there headwinds beyond this year that could moderate the earnings growth?

Milene, on propulsion margin, as I said, we should be at least at the upper end of the 24%, 24% margin. This year, we could definitely slightly exceed the 24% mark. Going forward, a bit early to say, but we continue to see a lot of tailwinds, notably on CFM56 as well as the LEAP spare parts. As you rightly said, we will start to recognize anytime soon LEAP-1B or RPFH margin despite the fact it's lower than what we had to recognize on LEAP-1A. So all that concur to, I would say, upper range of 22%, 24% going forward. And as you rightly said as well, when we look to our 2028 guidance, we may have to revisit that once again, given the strong performance we have and the raising guidance in 2026.

We are now going to proceed with our next question. And the questions come from the line of Benjamin Heelan from Bank of America.

I hope you're well. So the first question I had was on the LEAP OE profitability. Could you give us an update on where you are on that journey to the breakeven point? And you mentioned that you delivered 60% of the spares you expect for the full year in H1. Can you give us a kind of high-level view on that spare engine ratio that you're expecting for this year? That would be the first question. And then the second question is coming back on this engine versus OE economics. I guess the question is more why would you guys entertain that discussion? What does Airbus -- what would an OE -- take it away from Airbus, what would the OEs really bring to the table other than program participation. They don't have servicing IP. They don't have engineering IP on the engine side. So those would be the 2 questions.

Ben, so on LEAP OE, as we said many times, we already turned profitable when you combine installed engines and spare engines since maybe 3 years now. Now if you look specifically at installed engines, we continue to have a slight EBIT negative every time we are selling a new engine, and we are definitely strongly positive when we sell spare engines. But all combined, it is already profitable. In H1, as I said, we delivered 60% of the total expected volumes of spare engines. I would say that the ratio of spare engines with respect to the total of LEAP engines was in the low double digits. And looking to H2, there will be a deceleration to, I would say, a ratio of 10% to 12%, which basically will be the norm going forward.