What is the total value of the EPS®X00 electric propulsion system contract and its contribution to Safran's order backlog?

Contract size & backlog impact

Safran DSI’s agreement with AstroForge to supply two EPS® X00 electric‑propulsion units is a $30 million contract. According to Safran’s latest quarterly reporting, the company’s total order backlog sits at roughly $2.9 billion. Consequently, the EPS®X00 deal adds about 1 % to that backlog – a modest but strategically significant contribution given the high‑margin, technology‑lead nature of the product.

Trading implications

The announcement is a positive catalyst for SAFR’s stock. On the fundamentals side, the contract reinforces Safran’s growing presence in the emerging electric‑propulsion market, a segment expected to grow at >10 % CAGR through 2035. Although the $30 M deal is small relative to the overall backlog, it signals a deepening relationship with a new commercial‑space customer (AstroForge), which could open a pipeline of future contracts (e.g., additional propulsion units or downstream services). The news pushes the sentiment indicator to +70, indicating strong market optimism.

Actionable insight

- Short‑term: Expect a modest uptick in the stock on the news day, especially on volume‑driven platforms; consider entering a small‑to‑medium long position (e.g., 1–2 % of portfolio) on any pull‑back, targeting a 3–5 % upside as the market digests the news.

- Medium‑term: Keep an eye on Safran’s quarterly guidance; if management highlights the EPS®X00 platform as a “strategic growth driver,” it could justify a 6–12 % price appreciation over the next 3–6 months as investors re‑price the company’s exposure to the fast‑growing electric‑propulsion market.

- Risk: The contract’s size is modest, so any material upside will depend on broader sector sentiment (e.g., funding for asteroid missions) and Safran’s ability to convert this initial win into a broader contract pipeline. Monitor the next earnings release for any updates on the order‑backlog composition and potential guidance upgrades.