Amsterdam - Airbus SE (stock exchange symbol: AIR) reported consolidated financial results for the nine months ended 30 September 2024.
* 497 commercial aircraft delivered
* Revenues EUR 44.5 billion; EBIT Adjusted EUR 2.8 billion
* EBIT (reported) EUR 2.7 billion; EPS (reported) EUR 2.29
* Free cash flow before customer financing EUR -0.8 billion
* Guidance maintained
'We saw strong demand across our product range in the first nine months of the year. The nine-month earnings reflect the level of commercial aircraft deliveries, a solid performance in helicopters and the charges in our space business recorded in the first half,' said Guillaume Faury, Airbus Chief Executive Officer. 'We are constantly adapting to a complex and fast-changing operating environment marked by geopolitical uncertainties and specific supply chain challenges that have materialised in the course of 2024. We remain focused on our priorities, including ramping up commercial aircraft deliveries and transforming our Defence and Space division.'
Gross commercial aircraft orders totalled 667 (9m 2023: 1,280 aircraft) with net orders of 648 aircraft after cancellations (9m 2023: 1,241 aircraft). The order backlog amounted to 8,749 commercial aircraft at the end of September 2024. Airbus Helicopters registered 308 net orders (9m 2023: 191 units), including 43 heavy helicopters from the Super Puma Family. Airbus Defence and Space's order intake by value increased to EUR 11.0 billion (9m 2023: EUR 8.5 billion), reflecting good momentum across the division.
Consolidated revenues increased 5 percent year-on-year to EUR 44.5 billion (9m 2023: EUR 42.6 billion). A total of 497 commercial aircraft were delivered (9m 2023: 488 aircraft), comprising 45 A220s, 396 A320 Family, 20 A330s and 36 A350s. Revenues generated by Airbus' commercial aircraft activities increased 4 percent, mainly reflecting the higher number of deliveries. Airbus Helicopters' deliveries totalled 190 units (9m 2023: 197 units) with revenues rising 5 percent, reflecting a more favourable mix in programmes and a solid performance in services. Revenues at Airbus Defence and Space increased 7 percent year-on-year, mainly driven by the Air Power business, partly offset by the previous Estimate at Completion updates in Space Systems. Five A400M military airlifters were delivered (9m 2023: 4 aircraft).
Consolidated EBIT Adjusted - an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses - totalled EUR 2,798 million (9m 2023: EUR 3,631 million).
EBIT Adjusted related to Airbus' commercial aircraft activities decreased to EUR 3,028 million (9m 2023: EUR 3,216 million), with the increase in deliveries being reduced by investments for preparing the future.
The A220 programme continues towards a monthly production rate of 14 aircraft in 2026, with a focus on financial performance. The A320 Family programme continues to ramp up towards a rate of 75 aircraft per month in 2027. In late October, the first A321XLR was delivered. On widebody aircraft, the Company is now stabilising monthly A330 production at around rate 4. On the A350, the Company continues to target rate 12 in 2028 and is actively managing specific supply chain challenges that may have an impact on the programme's ramp-up trajectory, in particular in 2025.
Airbus Helicopters' EBIT Adjusted totalled EUR 420 million (9m 2023: EUR 417 million), reflecting services and the programmes mix despite lower deliveries.
EBIT Adjusted at Airbus Defence and Space was EUR -661 million (9m 2023: EUR -1 million), reflecting the charges of EUR 989 million in Space Systems, as announced in the H1 2024 financial results. 9m 2023 included EUR 0.4 billion of charges recorded on certain satellite development programmes.
On the A400M programme, development activities continue towards achieving the revised capability roadmap. Retrofit activities are progressing in close alignment with the customer. No further net material impact was recognised in the first nine months of 2024. Risks remain on the qualification of technical capabilities and associated costs, on aircraft operational reliability, on cost reductions and on securing overall volume as per the revised baseline.
Consolidated self-financed R&D expenses totalled EUR 2,351 million (9m 2023: EUR 2,167 million).
Consolidated EBIT (reported) amounted to EUR 2,690 million (9m 2023: EUR 2,712 million), including net Adjustments of EUR -108 million.
These Adjustments comprised:
EUR -146 million related to the dollar working capital mismatch and balance sheet revaluation, of which EUR -165 million were in Q3. This mainly reflects the phasing impact arising from the difference between transaction date and delivery date;
EUR +51 million related to the gain on Airbus OneWeb Satellites, linked to the acquisition of the remaining 50% of the joint venture in Q1;
EUR -13 million of other costs including compliance costs, of which EUR -8 million were in Q3.
The financial result was EUR -92 million (9m 2023: EUR 231 million), mainly reflecting negative impacts from the interest result and revaluation of financial instruments, partially offset by the positive impact from the revaluation of certain equity investments. Consolidated net income(1) was EUR 1,808 million (9m 2023: EUR 2,332 million) with consolidated reported earnings per share of EUR 2.29 (9m 2023: EUR 2.96).
Consolidated free cash flow before customer financing was EUR -845 million (9m 2023: EUR 1,104 million), mainly reflecting the change in working capital, notably the inventory build-up that supports fourth quarter deliveries and the ramp-up across programmes. Consolidated free cash flow was EUR -877 million (9m 2023: EUR 843 million). The gross cash position stood at EUR 21.1 billion at the end of September 2024 (year-end 2023: EUR 25.3 billion), with a consolidated net cash position of EUR 7.2 billion (year-end 2023: EUR 10.7 billion).
Outlook
As the basis for its 2024 guidance, the Company assumes no additional disruptions to the world economy, air traffic, the supply chain, the Company's internal operations, and its ability to deliver products and services.
The Company's 2024 guidance is before M&A.
On that basis, the Company targets to achieve in 2024:
Around 770 commercial aircraft deliveries;
EBIT Adjusted of around EUR 5.5 billion;
Free Cash Flow before Customer Financing of around EUR 3.5 billion.
Note to editors: Live Webcast of the Analyst Conference Call
At around 19:30 CET on 30 October 2024, you can follow the Nine-Month 2024 Results Analyst Conference Call via the Airbus website via https://www.airbus.com/en/investors. The analyst call presentation can also be found on the website. A recording will be made available in due course. For a reconciliation of Airbus' KPIs to 'reported IFRS' please refer to the analyst presentation.
Consolidated Airbus - Nine-Month (9m) 2024 Results
https://www.airbus.com/en/newsroom/press-releases/2024-10-airbus-reports-nine-month-9m-2024-results
