Airbus reports First Quarter (Q1) 2022 results.
Solid Q1 results in an evolving and complex geopolitical and economic environment
142(1) commercial aircraft delivered in Q1 2022
A320 Family: Monthly production rates to increase to 75 in 2025 to meet customer demand
Revenues
EBIT (reported)
Free cash flow before M&A and customer financing
Guidance unchanged; more challenging risk profile for the remainder of 2022
'These Q1 results reflect a solid performance across our commercial aircraft, helicopter and defence businesses. Our 2022 guidance is unchanged, even though the risk profile for the rest of the year has become more challenging due to the complex geopolitical and economic environment,' said
Gross commercial aircraft orders increased to 253 (Q1 2021: 39 aircraft) with net orders of 83 aircraft after cancellations (Q1 2021: -61 aircraft). The order backlog amounted to 7,023 commercial aircraft on
Consolidated revenues increased 15 percent to
Consolidated EBIT Adjusted - an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses - increased to
EBIT Adjusted related to Airbus' commercial aircraft activities increased to
Commercial aircraft production for the A320 Family is progressing towards a monthly rate of 65 aircraft by summer 2023, in a complex environment. Following an analysis of global customer demand as well as an assessment of the industrial ecosystem's readiness, the Company is now working with its suppliers and partners to enable monthly production rates of 75 in 2025. This production increase will benefit the entire global industrial value chain. Airbus will meet the higher production rates by increasing capacity at its existing industrial sites and growing the industrial footprint in Mobile, US, while investing to ensure that all commercial aircraft assembly sites are A321-capable.
On the A321XLR, the Company continues to work towards a first flight by the end of Q2 2022. Initially planned for the end of 2023, the entry-into-service is now expected to take place in early 2024 in order to meet certification requirements.
EBIT Adjusted at Airbus Defence and Space was
On the A400M programme, development activities continue toward achieving the revised capability roadmap. Retrofit activities are progressing in close alignment with the customer. Risks remain on the qualification of technical capabilities and associated costs, on aircraft operational reliability in particular with regard to powerplant, on cost reductions and on securing export orders in time as per the revised baseline.
Consolidated self-financed R&D expenses totalled
Consolidated EBIT (reported) amounted to
These Adjustments comprised:
The financial result was
Consolidated free cash flow before M&A and customer financing was
On
Outlook
The guidance issued in
As the basis for its 2022 guidance, the Company assumes no further disruptions to the world economy, air traffic, the Company's internal operations, and its ability to deliver products and services.
The Company's 2022 guidance is before M&A.
On that basis, the Company targets to achieve in 2022 around:
720 commercial aircraft deliveries;
EBIT Adjusted of
Free Cash Flow before M&A and Customer Financing of
The
Note to editors: Live Webcast of the Analyst Conference Call
At
Consolidated Airbus - First Quarter (Q1) 2022 Results: see full results at:
https://www.airbus.com/en/newsroom/press-releases/2022-05-airbus-reports-first-quarter-q1-2022-results
DEFINITION
EBIT
The Company continues to use the term EBIT (Earnings before interest and taxes). It is identical to Profit before finance result and income taxes as defined by IFRS Rules.
Adjustment
Adjustment, an alternative performance measure, is a term used by the Company which includes material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses.
EBIT Adjusted
The Company uses an alternative performance measure, EBIT Adjusted, as a key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses.
EPS Adjusted
EPS Adjusted is an alternative performance measure of basic earnings per share as reported whereby the net income as the numerator does include Adjustments. For reconciliation, see the Analyst presentation.
Gross cash position
The Company defines its consolidated gross cash position as the sum of (i) cash and cash equivalents and (ii) securities (all as recorded in the consolidated statement of financial position).
Net cash position
The Company defines its consolidated net cash position as the sum of (i) cash and cash equivalents and (ii) securities, minus (iii) financing liabilities, plus or minus (iiii) interest rate contracts related to fair value hedges (all as recorded in the Consolidated Statement of Financial Position).
FCF
For the definition of the alternative performance measure free cash flow, see the Universal Registration Document, MD&A section 2.1.6.1. It is a key indicator which allows the Company to measure the amount of cash flow generated from operations after cash used in investing activities.
FCF before M&A
Free cash flow before mergers and acquisitions refers to free cash flow as defined in the Universal Registration Document, MD&A section 2.1.6.1 adjusted for net proceeds from disposals and acquisitions. It is an alternative performance measure and key indicator that reflects free cash flow excluding those cash flows resulting from acquisitions and disposals of businesses.
FCF before M&A and customer financing
Free cash flow before M&A and customer financing refers to free cash flow before mergers and acquisitions adjusted for cash flow related to aircraft financing activities. It is an alternative performance measure and indicator that may be used occasionally by the Company in its financial guidance, especially when there is higher uncertainty around customer financing activities.
Footnotes:
Before a reduction of two aircraft previously recorded as sold in
The Company has decided to refine the net cash definition to include interest rate contracts related to fair value hedges, which is also reflected in the Q1 2022 balance.
Safe Harbour Statement:
This press release includes forward-looking statements. Words such as 'anticipates', 'believes', 'estimates', 'expects', 'intends', 'plans', 'projects', 'may' and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements made about strategy, ramp-up and delivery schedules, introduction of new products and services and market expectations, as well as statements regarding future performance and outlook. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
These factors include but are not limited to:
Changes in general economic, political or market conditions, including the cyclical nature of some of Airbus' businesses;
Significant disruptions in air travel (including as a result of the spread of disease or terrorist attacks);
Currency exchange rate fluctuations, in particular between the Euro and the
The successful execution of internal performance plans, including cost reduction and productivity efforts;
Product performance risks, as well as programme development and management risks;
Customer, supplier and subcontractor performance or contract negotiations, including financing issues;
Competition and consolidation in the aerospace and defence industry;
Significant collective bargaining labour disputes;
The outcome of political and legal processes, including the availability of government financing for certain programmes and the size of defence and space procurement budgets;
Research and development costs in connection with new products;
Legal, financial and governmental risks related to international transactions;
Legal and investigatory proceedings and other economic, political and technological risks and uncertainties;
Changes in societal expectations and regulatory requirements about climate change;
The full impact of the COVID-19 pandemic and the resulting health and economic crisis;
Aggravation of adverse geopolitical events, including
As a result,
Rounding
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Your contact
Head of
Phone: +33 6 73 82 11 68
guillaume.steuer@airbus.com
Head of
Phone: +33 6 16 09 55 92
stefan.schaffrath@airbus.com
Phone: +33674974951
justin.dubon@airbus.com
Head of
Phone: +49 175 227 4369
martin.aguera@airbus.com
Laurence Petiard
Head of
Phone: +33 6 18 79 75 69
laurence.petiard@airbus.com
Matthieu Duvelleroy
Phone: +33 6 29 43 15 64
matthieu.duvelleroy@airbus.com
Phone: +49 160 715 8152
daniel.werdung@airbus.com
(C) 2022 Electronic News Publishing, source