• Revenue: EUR69.2 billion, up 6% year-on-year.
• EBIT Adjusted: EUR5.4 billion, reflecting commercial aircraft deliveries and solid performance at helicopters.
• Net Income: EUR4.2 billion.
• Free Cash Flow Before Customer Financing: EUR4.5 billion.
• Dividend Proposal: EUR2 per share plus a special dividend of EUR1 per share.
• Commercial Aircraft Deliveries: 766 aircraft, including 269 in Q4, a 4% annual increase.
• Gross Orders: 878, with a backlog of 8,658 aircraft.
• Helicopters Net Orders: 450, with a book-to-bill above 1.
• Defence and Space Order Intake: EUR16.7 billion, up 6% year-on-year.
• R&D Expenses: EUR3.3 billion, stable compared to 2023.
• Net Cash Position: EUR11.8 billion as of the end of December.
• Total Liquidity: Around EUR35 billion.
• US Dollar Coverage Portfolio: EUR82.8 billion with an average blended rate of $1.21.

• Warning! GuruFocus has detected 6 Warning Signs with EADSF.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Airbus SE (EADSF) experienced a strong order intake across all businesses in 2024, confirming demand and a positive industry outlook.
• The company delivered 766 commercial aircraft in 2024, including the first A321 XLR deliveries, marking a 4% year-on-year increase.
• Airbus SE (EADSF) reported a net income of EUR4.2 billion and proposed a 2024 dividend of EUR2 per share, plus a special dividend of EUR1 per share.
• The company's backlog in value increased to EUR629 billion in 2024, reflecting a book-to-bill ratio above 1 for all divisions.
• Airbus Helicopters had an exceptional year with 450 net orders, highlighting strong demand and a book-to-bill ratio above 1.

Negative Points

• Airbus SE (EADSF) faced EUR1.3 billion in charges related to its space programs, impacting its EBIT adjusted.
• The company is experiencing supply chain challenges, particularly with Spirit AeroSystems, affecting the ramp-up of the A350 and A220.
• Engine supply issues, especially with CFM, are causing delays and will result in lower delivery numbers in Q1 2025.
• The integration of Spirit AeroSystems work packages is expected to have a low triple-digit negative impact on EBIT adjusted in 2026 and 2027.
• Airbus SE (EADSF) is facing uncertainties related to potential US tariffs, which could impact its financials and supply chain.

Q & A Highlights

Q: Can you talk a little bit more about Spirit and the challenges in the second half of the year? What are the challenges? A: Thomas Toepfer, CFO: The challenges include operational disruptions due to a major strike at Boeing, which affected Spirit, a major client. This led to more disruptions and required additional support to stabilize operations. Additionally, as we delved deeper into the work packages, we realized more investment was needed to support the A350 and A220 ramp-up. The transaction is complex, involving multiple stakeholders, but we are making good progress and expect to close by mid-year.

Q: Guillaume, you've talked about space and the discussions with Thales and Leonardo. What is a good outcome for you in these negotiations? A: Guillaume Faury, CEO: We aim to gain scale and speed by consolidating the business. We want to create a large company where Airbus has a significant stake, similar to the MBDA model. This would allow us to invest, grow, and compete globally. We are exploring different scenarios to achieve this scale and speed.

Q: Can you give us a quick view on how you see the raw material supply situation in 2025? A: Guillaume Faury, CEO: The raw material supply situation has normalized and is not on our list of critical bottlenecks for 2025.

Q: Can you help us with the delivery guidance? What does it imply for the growth in the A320 in particular? A: Guillaume Faury, CEO: We don't split by model, but we are struggling with the ramp-up on the A350 and A220 due to bottlenecks, particularly with Spirit AeroSystems. The trajectory for these programs is significantly impacted in 2025.

Q: What exactly is driving the lower supply of engines in H1? A: Guillaume Faury, CEO: For narrow bodies, the GTF from Pratt & Whitney is limited by past metal powder issues. CFM is facing production issues, including damage from a hurricane in Florida, affecting supply. This impacts both new aircraft and fleet support, with normalization expected around mid-year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.