July 26, 2023, © Leeham News: Airbus has presented its results for the first half year of 2023. A few critical suppliers are still Airbus’ constraint for growth.
For 2023 things are on track. The company sticks to its 2023 guidance of delivering 720 commercial aircraft with an EBIT adjusted of €6bn and Free cash flow of €3bn.
For 2024 and 2025, Airbus CEO Guillame Faury cautioned that the RTX GTF engine turbine disc inspections could strain an already challenged GTF MRO capacity further.
Revenue for 1H2023 was €20.3bn (€17.5bn 1H2022), operating profit €2.3bn (called EBIT adjusted, €2.3bn 1H2022), and net profit was €1.5bn (€2.5bn). The net profit for 1H2023 was adjusted for a dollar-to-Euro mismatch of predelivery payments of €0.7bn. It also reflects increased spending in R&D (for the hydrogen building brick programs, among others).
Free cash flow for 1H2023 was €2.0bn (€1.6bn), and the net cash position end of 1H2023 was €9.1bn. Liquidity was over €30bn.
Guidance for 2023 remains:
Of the 316 (297) delivered aircraft, 256 were A321/A320, 25 A220, 14 A350, and 21 A330. Production rates are unchanged from 1Q2023 forecasts.
Market demand is very strong, with gross orders at 1080 aircraft (1H2022 442) and net orders of 1044 (259 1H2022).
The monthly delivery rate for the A320 family targets a rate of 75 by 2026. Airbus 1H2023 deliveries are tracking to this delivery rate increase.
The final certification agreement with EASA regarding the A321XLR means additional insulation for the central tank and, therefore, increased empty weight. Airbus is in flight test of the plane and will use all possible means to keep as much of the 4,700nm range promised for the A321XLR as is possible. It’s too early to say if there, in the end, will be a range deficit, according to Airbus CEO Guillame Faury.
The Airbus helicopter had a strong 1H2023 with an increase in deliveries from 115 helicopters 1H2022 to 145 1H2023. Revenue increased by 16% to €3.2bn (€2.7bn) and EBIT by 24% to €0.27bn (€0.22bn).
Revenues decreased by 8% to €4.7bn (€5.1bn), mainly because of problems in the Space launcher business. EBIT improved to €0.09bn (€-0.1bn). Three A440M were delivered in 1H2023.