In September 2024, as industry leaders gathered at the U.S. Chamber of Commerce's Global Aerospace Summit, Safran CEO Olivier Andriès and GE Aerospace Chairman & CEO Larry Culp celebrated CFM International's 50th anniversary.
CFM International, a 50/50 joint venture between Safran Aircraft Engines and General Electric, develops, produces and markets the CFM56 engine and its successor, the LEAP engine.
While the headlines focused on their joint commitment to sustainable aviation through the RISE program, a deeper analysis of performance metrics reveals why this partnership continues to thrive.
According to WorkN'Play's Corporate Intelligence App, which analyzes over 65 management accounting and financial indicators across aerospace corporations, both Safran and GE Aerospace demonstrate exceptional business strength. Safran leads the industry with a "Very High" overall rating of 60.64, while GE Aerospace follows closely with a "High" rating of 58.32, outperforming competitors like General Dynamics, Honeywell International, Leonardo, Lockheed Martin, and Rolls-Royce.
Strong Foundations: Key Performance Highlights
The data validates the robust business models of both companies. Safran shows remarkable momentum with a 42.6% three-year increase in annual revenue, while GE Aerospace maintains steady growth at 11.6%. Both companies excel in profitability management, with Safran achieving a 246% three-year increase in net profit margin and GE Aerospace seeing a 158.4% improvement.
However, challenges exist. Safran's working capital management shows room for improvement with a negative working capital to revenues ratio of -0.06, while GE Aerospace faces pressure in bargaining power metrics with relatively high Days Sales Outstanding of 83 days.
Breaking Down the Success Formula
Human Capital Management
Safran leads with a "Very High" rating, demonstrating strong workforce optimization with a 13.8% headcount increase and 25.1% improvement in revenue per employee. GE Aerospace, despite a "Very Low" rating, shows efficiency with a 31.1% increase in revenue per employee.
Research & Development Excellence
Both companies show exceptional R&D management. GE Aerospace earned a "Very High" rating with significant R&D expenditure growth, while Safran increased R&D spending by 50.6% over three years, demonstrating commitment to innovation.
Production Asset Efficiency
The partnership benefits from complementary strengths in asset management. Safran achieved a 59.5% improvement in productive asset investment ratio, while GE Aerospace maintained steady growth at 24.2%.
Cost Management
Both companies demonstrate effective cost control. Safran's cost of revenues represents 61.9% of total expenses, while GE Aerospace maintains a healthy 78.3%, both below the industry average of 88.3%.
Financial Health
The companies show strong debt management capabilities. Safran reduced its net debt to gross profit ratio by 127.3%, while GE Aerospace achieved a 72.2% reduction, indicating improved financial stability.
Shareholder Value Creation
Both companies deliver impressive returns. Safran achieved an 815.2% increase in return on equity, while GE Aerospace saw a 203.3% improvement, significantly outperforming industry averages.
Looking Ahead: The RISE Program in Context
The performance metrics support CFM International's ambitious RISE program goals. With both partners demonstrating strong R&D capabilities and financial health, their target of reducing fuel consumption and CO2 emissions by 20% appears well-supported by operational fundamentals.
The Value of Data-Driven Analysis
WorkN'Play's Corporate Intelligence App provides crucial context for understanding industry dynamics. By processing over 500,000 mathematical calculations across 385+ corporations, it offers objective validation of business performance beyond headline announcements.
The data confirms that CFM International's success isn't just about technological innovation – it's built on the solid operational and financial foundation of two exceptionally well-managed companies. As they tackle ambitious sustainability goals through the RISE program, their track record suggests they have the resources, expertise, and momentum to succeed.
This analysis is powered by WorkN'Play's Corporate Intelligence App, developed by Jean Jacques André, providing comprehensive benchmarking and rating of corporations based on management accounting and financial indicators.