Airbus has announced its consolidated financial results for the first half of 2024, showing both achievements and areas of concern as the company navigates a complex market environment.
Key Financial Highlights
- Revenues: €28.8 billion, a 4% increase year-on-year
- EBIT Adjusted: €1.4 billion, down from €2.6 billion in H1 2023
- EBIT (reported): €1.5 billion
- Earnings per Share (EPS, reported): €1.04
- Free Cash Flow before Customer Financing: €-0.5 billion
- Commercial Aircraft Deliveries: 323 units
CEO’s Statement
“The half-year financial performance mainly reflects significant charges in our space business. We are addressing the root causes of these issues,” said Guillaume Faury, Airbus Chief Executive Officer. “In commercial aircraft, we are focused on deliveries and preparing the next steps of the ramp-up, while addressing specific supply chain challenges and protecting the sourcing of key work packages.”
Commercial Aircraft Performance
Airbus delivered 323 commercial aircraft in the first half of 2024, slightly up from 316 in H1 2023. These deliveries included:
- 28 A220s
- 261 A320 Family
- 13 A330s
- 21 A350s
The company also reported gross commercial aircraft orders of 327 and net orders of 310, with an order backlog of 8,585 aircraft at the end of June 2024.
Helicopters and Defence
Airbus Helicopters registered 233 net orders, including 38 H225s for the German Federal Police, and delivered 124 units, down from 145 in H1 2023. Despite the lower deliveries, revenues remained stable year-on-year due to strong performance in services.
Airbus Defence and Space reported an order intake by value of €6.1 billion and a 7% increase in revenues, primarily driven by the Air Power business. However, the division faced significant challenges, particularly in Space Systems, which incurred charges of €989 million.
Financial Metrics and Challenges
Consolidated EBIT Adjusted decreased to €1.4 billion, reflecting the substantial charges in Space Systems. EBIT Adjusted for commercial aircraft activities fell to €1.95 billion, influenced by increased investments to prepare for future growth.
The company’s financial result was €-108 million, mainly due to the negative impact from the revaluation of certain equity investments. Net income stood at €825 million, down from €1.5 billion in H1 2023.
Cash Flow and Financial Position
Free cash flow before customer financing was negative at €-529 million, impacted by changes in working capital and inventory build-up to support the ramp-up plan. The gross cash position was €21.9 billion at the end of June 2024, with a net cash position of €7.9 billion after dividend payments.
Outlook for 2024
Airbus maintains its guidance for 2024, assuming no additional disruptions to the global economy, air traffic, the supply chain, or internal operations. The company targets:
- Around 770 commercial aircraft deliveries
- EBIT Adjusted of around €5.5 billion
- Free Cash Flow before Customer Financing of around €3.5 billion
Strategic Developments
Airbus continues to focus on ramping up production across its aircraft programs. The A220 program aims for a monthly production rate of 14 aircraft by 2026, while the A320 Family is expected to reach 75 units per month by 2027. The A321XLR, which recently received its Type Certification from EASA, is set to enter service by the end of summer 2024. On the widebody front, Airbus targets a monthly production rate of four A330s in 2024 and 12 A350s by 2028
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