Airbus(US:EADSY)2023-07-26 23:45Financial Data and Key Metrics Changes - H1 2023 revenues increased to €27.7 billion, up 11% year-on-year, primarily due to higher commercial aircraft deliveries and contributions from the Helicopter division [19][20] - H1 2023 EBIT adjusted remained stable at €2.6 billion, reflecting higher deliveries and a favorable hedge rate, offset by investments for future preparations [19][20] - H1 2023 free cash flow before M&A and customer financing was €1.6 billion, with a net cash position of €9.1 billion and liquidity above €30 billion [21][28] Business Line Data and Key Metrics Changes - In H1 2023, 316 commercial aircraft were delivered, with 256 being A320 family aircraft, and the company is on track to reach a production rate of 75 aircraft per month by 2026 [9][30] - Helicopter deliveries increased to 145, up 30 from H1 2022, with revenues rising 16% year-on-year to €3.2 billion [34] - Defence and Space revenues decreased by 8% year-on-year, primarily due to delays in Space Systems and military systems delivery phasing [35] Market Data and Key Metrics Changes - Air traffic continued to grow in Q2 2023, with domestic traffic fully recovered and international traffic nearing pre-pandemic levels [10] - The airline industry is expected to return to profitability in 2023, driven by strong demand for fuel-efficient aircraft [10][11] Company Strategy and Development Direction - The company aims to ramp up production across all commercial aircraft programs while maintaining a focus on supply chain capabilities [38][39] - Digitalization and decarbonization are key priorities, with initiatives to enhance efficiency and develop future hydrogen-powered aircraft [40][43] - A significant internal reorganization is planned for the Defence and Space division to improve agility and customer focus [71] Management Comments on Operating Environment and Future Outlook - The geopolitical and macroeconomic environment remains volatile, impacting supply chain dynamics [6] - The company maintains its 2023 guidance of around 720 commercial aircraft deliveries, EBIT adjusted of around €6 billion, and free cash flow of around €3 billion [37] Other Important Information - The company is addressing issues related to Pratt & Whitney engines, with no expected impact on ongoing deliveries for 2023 [8][69] - A new Chief Financial Officer will join the company on September 1, 2023, following the interim CFO's contributions [45] Q&A Session Summary Question: Impact of geared turbofan issues on production rates - Management clarified that the removal of the rate 65 reference is unrelated to the GTF issues and confirmed a focus on ramping up to rate 75 [47][50] Question: A320 production progress and bottlenecks - Management confirmed that A320 production is on track and expressed confidence in meeting delivery targets [51] Question: Engine supplier negotiations for 2025 rates - Management indicated positive negotiations for 2025 rates but acknowledged the need to discuss potential indirect impacts from GTF quality issues [89]