Airbus (AIR.PA), opens new tab flagged short-term production pressures and confirmed a delay to its A350 freighter as it predicted a 7% increase in deliveries to around 820 jets this year, while continuing to clean up troubled space and defence projects.
Europe’s largest aerospace group took a fresh charge of 300 million euros ($312.84 million) for its troubled Space business, while highlighting potential risks to the long-term future of its slow-selling A400M military transport aircraft.
Airbus reported adjusted operating income of 5.35 billion euros for 2024, down 8% and in line with expectations, including 2.56 billion in the fourth quarter as it grappled with ongoing snags in its supply chains.
Annual revenues rose 6% to 69.23 billion euros, of which 24.72 billion were generated in the three months to December 31.
Analysts had on average expected fourth-quarter core operating profit of 2.6 billion euros on sales of 24.68 billion, according to a company-compiled consensus survey.
Airbus, which delivered 766 jets last year, roughly in line with its target, has been facing industrial delays due partly to problems in the aerospace supply chain, which have also hampered the recovery of embattled U.S. rival Boeing (BA.N), opens new tab.
The world’s largest planemaker said the production ramp-up of A320 and A350 families faced short-term pressure due mainly to delays from U.S. supplier Spirit AeroSystems (SPR.N), opens new tab, which is in the process of being broken up between Airbus and its main customer Boeing.
Airbus maintained all its medium-term output targets, however.
Airbus said it was delaying a new freighter version of its A350 wide-body jet by around a year to the second half of 2027, confirming a development delay previously reported by Reuters.
For 2025, Airbus forecast adjusted operating income to rise to about 7 billion euros, excluding any impact from threatened trade tariffs but including the integration of Spirit, in a sign that a final deal to absorb Airbus-related factories is close.
The France-based group is expected to take over two Spirit plants providing composite structural parts for the A350 and A220. It may also take over a smaller plant in Scotland if no alternative buyer can be found.
Airbus said the transaction would have a “broadly neutral” impact at the operating income level and weigh on free cashflow to the tune of “mid triple digit” millions of euros.
Airbus reported 4.46 billion euros of free cashflow in 2024 and forecast around 4.5 billion in 2025.
The company declared a 2 euro per share annual dividend, up 11% from the prior year, and said it planned to pay a 1 euro a share special dividend in 2025, on par with 2024. (reuters)
