Airbus SE / Key word(s): Quarter Results
Ad-hoc release, 29 April 2021
Airbus reports First Quarter (Q1) 2021 results
- 125 commercial aircraft delivered in a market environment that remains uncertain
- Strong focus on cost and cash containment; progress on restructuring
- Revenues € 10.5 billion; EBIT Adjusted € 0.7 billion
- EBIT (reported) € 0.5 billion; EPS (reported) € 0.46
- Free cash flow before M&A and customer financing € 1.2 billion, including positive phasing impact
- Net cash position at € 5.6 billion
- The guidance issued in February 2021 remains unchanged
Airbus SE (stock exchange symbol: AIR) reported consolidated financial results for its First Quarter (Q1) ended 31 March 2021.
"The good Q1 results mainly reflect our commercial aircraft delivery performance, cost and cash containment, progress with the restructuring plan as well as positive contributions from our helicopter and defence and space activities," said Airbus Chief Executive Officer Guillaume Faury. "The first quarter shows that the crisis is not yet over for our industry, and that the market remains uncertain. We are investing in innovation and in the transformation of our Company to deliver on our long-term ambitions across the portfolio."
Gross commercial aircraft orders totalled 39 (Q1 2020: 356 aircraft) and included 38 single-aisle aircraft. After cancellations, net commercial aircraft orders were -61 (Q1 2020: 290 aircraft) with the order backlog comprising 6,998 aircraft on 31 March 2021. Airbus Helicopters booked 40 net orders (Q1 2020: 54 units), including 2 Super Puma Family rotorcraft and 1 H160. Airbus Defence and Space's order intake by value was € 2.0 billion (Q1 2020: € 1.7 billion) and included major contract wins in Space Systems and recurring services orders in Military Aircraft.
Consolidated revenues were broadly stable year-on-year at € 10.5 billion (Q1 2020: € 10.6 billion). A total of 125 commercial aircraft were delivered (Q1 2020: 122 aircraft), comprising 9 A220s, 105 A320 Family, 1 A330 and 10 A350s. Revenues generated by Airbus' commercial aircraft activities decreased by 4 percent, mainly reflecting lower volume in services. Airbus Helicopters delivered 39 units (Q1 2020: 47 units) with revenues reflecting lower volume in civil helicopters, partly offset by growth in services. Revenues at Airbus Defence and Space were stable compared to a year earlier.
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 € 694 million (Q1 2020: € 281 million).
The EBIT Adjusted related to Airbus' commercial aircraft activities increased to € 533 million (Q1 2020: € 191 million), mainly reflecting the focus on cost as well as a favourable mix. It also includes a positive impact from currency hedging.
Airbus Helicopters' EBIT Adjusted increased to € 62 million (Q1 2020: € 53 million), driven by services, programme execution and lower spending on Research & Development (R&D) following the certifications of the H160 and five-bladed H145 in 2020.
EBIT Adjusted at Airbus Defence and Space increased to € 59 million (Q1 2020: € 15 million), mainly reflecting continued cost containment and positive phasing in the quarter. One A400M military airlifter was delivered.
Consolidated self-financed R&D expenses totalled € 620 million (Q1 2020: € 663 million).
Consolidated EBIT (reported) amounted to € 462 million (Q1 2020: € 79 million), including Adjustments totalling a net € -232 million.
These Adjustments comprised:
- € -29 million related to A380 programme cost;
- € -177 million related to the dollar pre-delivery payment mismatch and balance sheet revaluation;
- € -26 million of other costs, including compliance.
Consolidated free cash flow before M&A and customer financing amounted to € 1,202 million (Q1 2020: € -8,030 million), mainly driven by a strong positive phasing impact from working capital and reflects continued cash containment efforts. Consolidated free cash flow was € 1,164 million (Q1 2020: € -8,501 million).
The consolidated net cash position was € 5.6 billion on 31 March 2021 (year-end 2020: € 4.3 billion) with a gross cash position of € 22.6 billion (year-end 2020: € 21.4 billion). The Company's liquidity position remains strong. The maturity of the Supplemental Liquidity Line has been extended by 6 months, maintaining a high level of flexibility in the uncertain environment caused by COVID-19.
The guidance issued in February 2021 remains unchanged.
On that basis, the Company targets to at least achieve in 2021:
- Same number of commercial aircraft deliveries as in 2020;
- EBIT Adjusted of € 2 billion;
- Breakeven free cash flow before M&A and customer financing.
Note to editors: Live Webcast of the Analyst Conference Call
At 08:15 CEST on 29 April 2021, you can listen to the Q1 2021 Results Analyst Conference Call with Chief Executive Officer Guillaume Faury and Chief Financial Officer Dominik Asam via the Airbus website https://www.airbus.com. The analyst call presentation can also be found on the website. A recording will be made available in due course. For a reconciliation of Airbus' KPIs to "reported IFRS" please refer to the analyst presentation.
Contacts for the media
Consolidated Airbus - First Quarter (Q1) 2021 Results
EBIT (reported) / EBIT Adjusted Reconciliation
The table below reconciles EBIT (reported) with EBIT Adjusted.
1. Airbus SE continues to use the term Net Income/Loss. It is identical to Profit/Loss for the period attributable to equity owners of the parent as defined by IFRS Rules.
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.
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 U.S. dollar;
- 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;
- The full impact of the COVID-19 pandemic and the resulting health and economic crisis.
As a result, Airbus SE's actual results may differ materially from the plans, goals and expectations set forth in such forward-looking statements.
Any forward-looking statement contained in this press release speaks as of the date of this press release. Airbus SE undertakes no obligation to publicly revise or update any forward-looking statements in light of new information, future events or otherwise.
29-Apr-2021 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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