“Airbus delivered a solid nine-month 2022 financial performance in a complex operating environment,” said Guillaume Faury, Airbus chief executive officer. “The supply chain remains fragile resulting from the cumulative impact of COVID, the war in Ukraine, energy supply issues and constrained labour markets. Our strong focus on cash flow and the favourable dollar/euro environment have enabled us to raise our free cash flow guidance for 2022. The commercial aircraft delivery and earnings targets are maintained. Our teams are focused on our key priorities and in particular, delivering the commercial aircraft ramp-up over the coming months and years.”
Gross commercial aircraft orders increased to 856 (9m 2021: 270 aircraft) with net orders of 647 aircraft after cancellations (9m 2021: 133 aircraft). The order backlog amounted to 7,294 commercial aircraft at the end of September 2022. Airbus Helicopters registered 246 net orders (9m 2021: 185 units), with bookings well spread across programmes. Airbus Defence and Space’s order intake by value was € 8.0 billion (9m 2021: € 10.1 billion), corresponding to a book-to-bill ratio slightly above 1. Third quarter 2022 order intake mainly related to services across the Division's portfolio.
Consolidated revenues increased to € 38.1 billion (9m 2021: € 35.2 billion). A total of 437(1) commercial aircraft were delivered (9m 2021: 424(2) aircraft), comprising 34 A220s, 340 A320 Family, 21 A330sand 42 A350s(2). Revenues generated by Airbus’ commercial aircraft activities increased 8 percent year-on-year, mainly reflecting the higher number of deliveries including a favourable mix and the strengthening of the US dollar. Airbus Helicopters delivered 193 units (9m 2021: 194 units), with revenues rising by 9 percent mainly reflecting growth in services and a favourable mix in programmes. Revenues at Airbus Defence and Space increased 10 percent, mainly driven by the Military Aircraft business and the Eurodrone contract signature. Seven A400M airlifters were delivered in 9m 2022.
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 slightly to € 3,481 million (9m 2021: € 3,369 million).
EBIT Adjusted related to Airbus’ commercial aircraft activities increased to € 2,875 million (9m 2021: € 2,739 million). It included the non-recurring positive impact from retirement obligations recorded in Q1, partly offset by the impact from international sanctions against Russia. It also reflects a less favourable hedge rate compared to 9m 2021.
On the A320 Family programme, production is progressing towards a monthly rate of 65 aircraft in early 2024 and 75 in 2025. The groundwork continues throughout all sites to secure rate 75 and adapt to the higher proportion of A321s in the backlog, ensuring all A320 Family Final Assembly Lines become A321 capable. Preparation for the upgrade of the second A320 FAL in Toulouse is underway. All three test A321XLRs have now flown, with the aircraft’s entry-into-service expected to take place in Q2 2024. On widebody aircraft, the Company is exploring, together with its supply chain, the feasibility of further rate increases to meet growing market demand as international air travel recovers.
Airbus Helicopters’ EBIT Adjusted increased to € 380 million (9m 2021: € 314 million), partly driven by the growth in services and a favourable mix in programmes. It also reflects non-recurring elements booked in Q1, including the positive impact related to retirement obligations.
EBIT Adjusted at Airbus Defence and Space totalled € 231 million (9m 2021: € 284 million). This decrease mainly reflects the impairment related to the Ariane 6 launcher delay, the impact of rising inflation in some long-term contracts across the Division’s portfolio and the consequences of international sanctions, partly offset by the positive impact related to retirement obligations booked in Q1 and Eurodrone.
On the A400M programme, development activities continue towards 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, on cost reductions and on securing export orders in time as per the revised baseline.
Consolidated self-financed R&D expenses totalled € 1,965 million (9m 2021: € 1,919 million).
Consolidated EBIT(reported) amounted to € 3,552 million (9m 2021: € 3,437 million), including net Adjustments of € +71 million.
These Adjustments comprised:
€ +349 million related to the dollar pre-delivery payment mismatch and balance sheet revaluation, of which € +123 million were in Q3;
€ +33 million related to the A380 programme, of which € +40 million were in Q3;
€ -219 million related to the A400M programme, of which € -1 million were in Q3;
€ -48 million related to the Aerostructures transformation in France and Germany, of which € -15 million were in Q3;
€ -44 million of other costs including compliance, of which € -10 million were in Q3.
The financial result was € -306 million (9m 2021: € -172 million). It mainly reflects the net interest result of € -166 million as well as a negative impact from the revaluation of financial instruments, partly offset by the evolution of the US dollar and the revaluation of certain equity investments. Consolidated net income(3) was € 2,568 million (9m 2021: € 2,635 million) with consolidated reported earnings per share of € 3.26 (9m 2021: € 3.36).
Consolidated free cash flow before M&A and customer financing was € 2,899 million (9m 2021: € 2,260 million), reflecting the profit translated into cash and supported by a favourable foreign exchange environment. Consolidated free cash flow was € 2,502 million (9m 2021: € 2,308 million). The 2021 dividend of € 1.50 per share, or € 1.2 billion, was paid in Q2 2022 while pension contributions totalled € 0.5 billion in 9m 2022. On 30 September 2022, the gross cash position stood at € 22.5 billion (year-end 2021: € 22.7 billion) with a consolidated net cash position(4) of € 8.0 billion (year-end 2021: € 7.7 billion).
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