Airbus (AIR) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue rose 4.2% year-over-year to €28.8 billion, driven by higher commercial aircraft deliveries and Air Power business growth.

• Net income fell 46% year-over-year to €825 million, mainly due to a €989 million charge in Space Systems.

• EBIT Adjusted dropped 47% to €1.4 billion, reflecting the Space Systems charge.

• Free cash flow before customer financing was negative at €-529 million, impacted by inventory build-up for ramp-up plans.

• Commercial aircraft demand remains strong, with 323 deliveries and a backlog of 8,585 aircraft at June 2024.

Financial highlights

• Revenue: €28.8 billion, up 4.2% year-over-year; commercial aircraft revenue up 4%.

• EBIT Adjusted: €1.4 billion, down 47% year-over-year; EBIT (reported): €1.5 billion, down 23%.

• Net income: €825 million, down 46% year-over-year; EPS: €1.04, down from €1.94.

• Free cash flow before customer financing: €-529 million (H1 2023: €1,635 million); net cash position: €7.9 billion, down from €10.7 billion at year-end 2023.

• Gross margin decreased to €4.2 billion (14.5% margin) from €4.5 billion (16.3%) year-over-year.

Outlook and guidance

• 2024 guidance targets around 770 commercial aircraft deliveries, EBIT Adjusted of ~€5.5 billion, and free cash flow before customer financing of ~€3.5 billion, assuming no further disruptions.

• A320 Family ramp-up to 75 aircraft/month now expected in 2027 due to supply chain challenges.

• A220 ramp-up continues toward 14/month in 2026; A321XLR entry-into-service expected end of summer 2024.

• Guidance assumes no further major disruptions to the global economy, supply chain, or internal operations.