Airbus released consolidated financial results for 2023 and provided guidance for 2024. Check it out below:
- 735 commercial aircraft delivered;
- Revenues of €65,4 billion; Adjusted EBIT of €5,8 billion;
- EBIT (reported) of €4,6 billion; EPS (reported) of €4,80;
- Free cash flow before M&A and customer financing of €4,4 billion; net cash of €10,7 billion;
- 2023 target achieved;
- Dividend proposals: €1,80 per share and special dividend of €1,00 per share;
- Guidance issued for 2024.
“In 2023, we recorded strong order intake across all our businesses and delivered on our commitments. This was a significant achievement given the complexity of the operational environment”, said Guillaume Faury, CEO of Airbus.
Last year the company's goal was:
- 720 deliveries of commercial aircraft;
- Adjusted EBIT of €6,0 billion;
- Free cash flow before M&A and customer financing of €3,0 billion.
Thus, gross commercial aircraft orders totaled 2.319 (2022: 1.078 aircraft) with net orders of 2.094 aircraft after cancellations (2022: 820 aircraft). Backlog of orders totaled 8.598 commercial aircraft at the end of 2023. Airbus Helicopters recorded 393 net orders (2022: 362 units). Likewise, Airbus Defense and Space order intake increased by 15% to €15,7 billion (2022: €13,7 billion). Furthermore, fourth quarter orders included 16 C295 aircraft for Spain.
Consolidated order intake by value increased to €186,5 billion (2022: €82,5 billion) with the order book consolidated valued at €554 billion at the end of 2023 (year-end 2022: €449 billion). The increase in the value of the consolidated portfolio mainly reflects the book-to-bill of the entire company well above 1, partially offset by the weakening of the US dollar.
Consolidated revenues increased 11% year-on-year to €65,4 billion (2022: €58,8 billion). That way, a total of 735 commercial aircraft were delivered (2022:661). aircraft), comprising:
- 68 A220;
- 571 of the A320 family;
- 32 A330;
- 64 A350.
Revenues generated by Airbus' commercial aircraft activities increased by 15%, mainly reflecting the increased number of deliveries. Airbus Helicopters deliveries were stable at 346 units (2022: 344 units), with revenues increasing 4%, which reflected overall performance across all programs and services. Airbus Defense and Space revenues increased 2%, driven mainly by Military Air Systems and Connected Intelligence, offset by some updated estimates on the completion of certain space programs. Thus, a total of 8 military transport aircraft (A400M) were delivered (2022: 10 aircraft).
EBIT
Adjusted Consolidated EBIT was €5.838 million (2022: €5.627 million) and the Adjusted EBIT related to Airbus commercial aircraft activities increased to €4.818 million (2022: €4.600 million).
Airbus Helicopters’ Adjusted EBIT increased to €735 million (2022: €639 million) and the Adjusted EBIT at Airbus Defense and Space decreased to €229 million (2022: €384 million).
The decrease reflects charges of €0,6 billion resulting from updated estimates on the completion of certain space programs, partially mitigated by the performance of the rest of the business. Thus, fiscal year 2022 included some non-recurring elements, mainly the loss of two Pleiades Neo satellites.
O Consolidated EBIT (reported) totaled €4.603 million (2022: €5.325 million), including net adjustments of €-1.235 million.
These adjustments comprised:
- €-1.030 million related to dollar working capital mismatch and balance sheet revaluation, of which €-224 million was in the fourth quarter. This mainly reflects the phasing impact arising from the difference between the transaction date and the delivery date;
- € -89 million related to the transformation of aerostructures, of which € -32 million were in the fourth quarter;
- €-41 million related to the A400M program, of which €-41 million was in the fourth quarter;
- €-75 million of other costs, including compliance, of which €-19 million were in the fourth quarter.
Airbus results
Thus, the financial result was €166 million (2022: €-250 million), being consolidated net profit of €3.789 million (2022: €4.247 million) with reported consolidated earnings per share of €4,80 (2022: €5,40).
The 2022 financial year included non-recurring positive impacts from retirement obligations and topics related to Compliance, partially offset by the impact resulting from international sanctions against Russia, while in the first half of 2023 provisions worth 0,1 billion euros were released from topics related to Compliance.
The A220 ramp-up continues towards a monthly production rate of 14 aircraft by 2026, with a focus on the industrial maturity and financial performance of the program. In the A320 family program, production is progressing well toward the previously announced rate of 75 aircraft per month in 2026.
Furthermore, in 2023 construction began on the second final assembly capacity for the A320 in Tianjin (China) and Mobile (USA). Likewise, the new A320 family final assembly line in Toulouse delivered its first aircraft in December. Additionally, the first A321XLR entered the final assembly line in December (with entry into service to occur in the third quarter of 2024).
Regarding wide-body aircraft, the company is moving towards a monthly rate of 4 aircraft for the A330 in 2024 and 10 for the A350 in 2026.
In short, consolidated free cash flow before M&A and customer financing was €4.386 million (2022: €4.680 million), mainly reflecting the level of commercial aircraft deliveries as well as strong performance across all businesses.
O consolidated free cash flow of €3.885 million (2022: €4.324 million) included €-65 million for mergers and acquisitions activities and €-436 million of customer financing, mainly related to the planned execution of certain contractual obligations.
A gross cash position stayed in €25,3 billion at the end of 2023 (end of year 2022: €23,6 billion), with a net cash position consolidated of €10,7 billion (year-end 2022: €9,4 billion).
The Board of Directors will propose the payment of a dividend of €1,80 per share in 2023 (the same amount as in 2022) and a special dividend of €1,00 per share for the 2024 Annual General Meeting, which will take place on April 10 2024. The proposed payment date is April 18, 2024.
Goals for next year
As a basis for its 2024 guidance, the company says it does not assume additional disruptions to the global economy, air traffic, supply chain, internal company operations and its ability to provide products and services. In that regard, the company's 2024 guidance predates M&A (mergers and acquisitions).
Thus, the objectives for 2024 are:
- Around 800 deliveries of commercial aircraft;
- Adjusted EBIT between €6,5 billion and €7,0 billion;
- Free cash flow before customer financing of around €4,0 billion.
Source: Airbus.
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