Airbus SE Nine Months 2024 Earnings Conference Call Summary Company Overview - Company: Airbus SE - Date of Call: October 30, 2024 - Participants: Guillaume Faury (CEO), Thomas Toepfer (CFO), Helene Le Gorgeu (Head of Investor Relations) Key Points Industry Context - The aerospace industry is facing a complex and fast-changing environment due to geopolitical uncertainties and supply chain challenges [9][10] - Airbus is focused on ramping up production in commercial aircraft and transforming its Defense and Space divisions [9] Leadership Changes - The Board of Directors proposed the renewal of Guillaume Faury's mandate as CEO at the next AGM [6] - Lars Wagner, CEO of MTU Aero Engines, will join Airbus in 2026 to succeed Christian Scherer as CEO of Commercial Aircraft [7][8] Financial Performance - Revenue: €44.5 billion, up 5% year-on-year, driven by commercial aircraft deliveries and Air Power business [24] - EBIT Adjusted: Decreased to €2.8 billion from €3.6 billion year-on-year, impacted by charges in the space business [26] - Free Cash Flow: Negative €4.8 billion, reflecting inventory buildup for Q4 deliveries [12] - Net Income: €1.8 billion, with earnings per share of €2.29 [32] Commercial Aircraft - Delivered 497 commercial aircraft year-to-date, compared to 488 last year [11] - Strong demand with 667 gross orders booked, including 457 for the A320 family [13] - Backlog for the A320 family stands at 7,253 aircraft, with over two-thirds for the A321 [13] Defense and Space - Order intake for Defense and Space reached €11 billion, with €4.5 billion in Q3 [17] - The space business is undergoing a transformation due to competitive pressures and the need for consolidation [19][21] Challenges and Risks - The company is facing challenges in the supply chain, particularly with engines from Pratt & Whitney and CFM [80][81] - Inflation is expected to have a negative effect of a couple of hundred million euros in 2024 [72] - The ongoing Boeing strike may indirectly impact Airbus suppliers [82] Future Guidance - Airbus targets around 770 commercial aircraft deliveries in 2024, with EBIT adjusted of around €5.5 billion and free cash flow before customer financing of around €3.5 billion [48] - The company is focused on operational efficiency and prioritizing activities that drive performance [50] Additional Insights - Airbus is implementing a lead initiative to refocus on ramp-up and operational efficiency, counterbalancing negatives such as high staffing levels and inflation [60] - The company is exploring ways to strengthen the European space sector and improve competitiveness [21][63] Conclusion - Airbus remains committed to its priorities in commercial aircraft ramp-up and Defense and Space transformation, while navigating a challenging operating environment [49]
Airbus SE (EADSF) Nine Months 2024 Earnings Call Transcript