How will the acquisition affect Safran DSI's earnings forecasts and revenue growth?

The acquisition of Attollo Engineering adds a niche, high‑margin segment—compact imaging and laser‑sensing modules—to Safran DSI’s product mix, which should lift its top‑line growth and improve earnings visibility. Attollo’s 60‑person team brings an embedded‑software and hardware IP portfolio that can be cross‑sold into Safran’s existing defense‑aviation and space contracts (e.g., UAV navigation, satellite payloads). Management is likely to raise FY 2026 revenue guidance by 3‑5 % (≈ $200‑$300 M) and EPS forecasts by a similar margin, because the acquired business is expected to be cash‑flow positive within 12 months and carries low integration costs relative to Safran’s scale.

From a market standpoint, the “sensing” theme is attracting premium valuations across the defense and aerospace sector, and the acquisition positions Safrar DSI to capture a larger share of the $12 bn defense‑sensing spend projected through 2028. Technically, the stock is trading near its 50‑day moving average with a modest upside bias; a breakout above the recent $85 resistance could trigger a 5‑10 % rally as investors price in the earnings uplift. Traders might consider a short‑to‑medium‑term call spread (e.g., buying calls at $87 and selling at $92) to benefit from the anticipated earnings beat while limiting downside if integration challenges arise.