Airbus beats expectations for 3rd Quarter 2024

Airbus reported its 3rd Quarter 2024 financial results earlier today. Results for the company were positive in commercial aircraft and helicopters, but down for defence and space. Overall, the quarter was positive, and management confirmed full year guidance for 2024 for 770 aircraft, €5.5 billion in EBIT and €3.5 billion in free cash flow. The management presentation that accompanied the conference call is available here. Earnings per share of €1.24 during the quarter beat the consensus of €1.11. Revenues in the quarter were up 5.5% YoY at €15.7 billion. The company ended the quarter with a consolidated net cash position of €7.2 billion. “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.” [caption id="attachment_87188" align="aligncenter" width="640"] image: Airbus[/caption] Commercial Aircraft Revenues for the Airbus commercial aircraft division for 9 months in 2024 were €32.879 billion, up from €31,507 billion in 2023. Aircraft deliveries rose to 497 aircraft, up from 488 on 2023. Adjusted EBIT was €2,876 billion, up from €2,306 in 2023. While supply chain constraints resulted in a lower production ramp-up than predicted at the start of the year, management has re-confirmed guidance for 770 aircraft deliveries in 2024. Deliveries through 9 months in 2024 include 45 A220, 396 A320, 20 A330 and 36 A350 aircraft. Order intake of 648 aircraft kept the book to bill ratio at a positive 1.30 for the first nine months. The A220 continues towards a monthly production rate of 14 aircraft in 2026. The A320 Family 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 Airbus Helicopters results were also positive, with 9 month Revenues of €4.875 billion versus €4.662 billion in 2023, reflecting a favorable mix as unit deliveries fell from 197 last year to 190 helicopters this year. EBIT rose slightly from €410 million in 2023 to €420 million in 2024. Strong order intake of 308 units in 2024, versus 191 in 2023 bode well for the future, as the order book swelled to 922 units, with a 9 month book to bill ratio of 1.62. Airbus Defence and Space Airbus Defence and Space increased revenues to €7.609 billion for the first 9 months of 2024 from €7.133 for the same period in 2023. Order intake increased from €8.469 billion in 2023 to 10,971 in 2024. EBIT, however, remained negative for this unit, with a loss of €617 million in the first nine months of 2024. Management Transition The company also announced a management transition for the Commercial Aircraft business. Lars Wagner, current CEO of MTU Aero Engines AG, has been selected to become the successor to Christian Scherer as CEO of the Commercial Aircraft business after he completes his term at MTU. With strong manufacturing and MRO experience, he brings unique expertise to the executive suite, and is viewed as a positive hire. The Bottom Line Airbus had another positive quarter, beating expectations, and by reconfirming full year guidance for 770 aircraft precluded expectations of a further drop in deliveries that many were expecting. Overall, a positive quarter leading into what needs to be a blockbuster 4th quarter with 90 plus deliveries per month to meet guidance. Given prior Airbus 4th quarter production increases, we expect the company to meet its guidance.

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