Airbus 2023 Financial Snapshot: Earnings Dip to €2.3 Billion Amidst Global Challenges
Airbus, a global leader in aerospace, has released its financial results for the first nine months of 2023, showcasing a mix of robust performance and challenges.
Consolidated EBIT (Earnings Before Interest and Taxes): Airbus reported a consolidated EBIT of €2,712 million for the first nine months of 2023. This figure is a decrease from the €3,552 million reported in the same period in 2022. The EBIT includes net adjustments of €-919 million, which are significant considering the various factors impacting the business.
Revenue Recognition and Adjustments: The adjustments included €-806 million related to the dollar pre-delivery payment mismatch and balance sheet revaluation. This reflects the phasing impact arising from the difference between transaction date and delivery date. Other adjustments included costs related to the Aerostructures transformation and compliance.
Net Income and Earnings Per Share: Airbus’s consolidated net income stood at €2,332 million, slightly lower than the €2,568 million reported in 2022. The reported earnings per share were €2.96, compared to €3.26 in the previous year.
Free Cash Flow: The consolidated free cash flow before Mergers and Acquisitions (M&A) and customer financing was €1,037 million, a significant decrease from €2,899 million in 2022. This change primarily reflects the inventory build-up in Q3, consistent with the backloaded delivery profile and production ramp-up.
Cash Position: The gross cash position was reported at €22.4 billion at the end of September 2023, down from €23.6 billion at year-end 2022. The consolidated net cash position was €8.3 billion, compared to €9.4 billion at the end of 2022.
Outlook and Forward-Looking Statements
Airbus maintains its guidance issued in February 2023, assuming no additional disruptions to the world economy, air traffic, supply chain, or internal operations. The targets for 2023 include:
• Around 720 commercial aircraft deliveries.
• EBIT Adjusted of €6.0 billion.
• Free Cash Flow before M&A and Customer Financing of €3.0 billion.
Challenges and Risks
Airbus’s performance and outlook are subject to various risks and uncertainties, including changes in economic, political, or market conditions, disruptions in air travel, currency exchange rate fluctuations, and the cyclical nature of some of Airbus’s businesses. The impact of the COVID-19 pandemic and geopolitical events, such as Russia’s invasion of Ukraine, also pose significant challenges.
Airbus’s financial results for the first nine months of 2023 reflect a resilient yet challenging business environment. While the company has demonstrated robust performance in several areas, it also faces headwinds due to global economic and geopolitical factors. The company’s outlook remains cautiously optimistic, with a focus on delivering on its targets while navigating the complexities of the current global landscape.