Airbus flagged short-term production pressures and confirmed a delay to its A350 freighter as it predicted a 7% increase in deliveries to about 820 jets this year, while continuing to clean up troubled space and defence projects.
Europe’s largest aerospace group took a fresh charge of €300m 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 €5.35bn for 2024, down 8% and in line with expectations, including €2.56bn in the fourth quarter as it grappled with ongoing snags in its supply chains.
Annual revenues rose 6% to €69.23bn, of which €24.72bn was generated in the three months to December 31.
Analysts had on average expected fourth-quarter core operating profit of €2.6bn on sales of €24.68bn, 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 US rival Boeing .
The world’s largest plane maker said the production ramp-up of A320 and A350 families faced short-term pressure due mainly to delays from US supplier Spirit AeroSystems, which is in the process of being broken up between Airbus and its main customer Boeing. Airbus, however, maintained all its medium-term output targets.
Airbus said it was delaying a new freighter version of its A350 wide-body jet by about 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 €7bn, 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” effect at the operating income level and weigh on free cash flow of “mid triple digit” millions of euro.
Airbus reported €4.46bn of free cash flow in 2024 and forecast about €4.5bn in 2025.
The company declared a €2 per share annual dividend, up 11% from the previous year, and said it planned to pay a €1 a share special dividend in 2025, on par with 2024.
SPACE AND DEFENCE
In Space, the latest charge brings to almost €2bn the amount provisioned in two years on loss-making satellite projects, which industry sources have linked mainly to the OneSat programme of reprogrammable satellites.
Such losses have spurred talks to create a new venture grouping Airbus satellite activities with those of Thales Alenia Space to counter the runaway growth of Elon Musk’s Starlink, though sources caution this may take some time.
Airbus also announced new charges of €121m for the A400M, which has been hit by chronic delays, partial order cancellations by European launch nations and slow exports.
Airbus said it was assessing the potential effect of the uncertainty over orders on future manufacturing levels.
Powered by the West’s largest turboprop engines, the A400M was commissioned in 2003 to give Europe an independent airlift capacity, rather than relying on the US-built Lockheed Martin C-130 or the now out of production Boeing C-17.
Industry sources said Airbus has enough orders to keep A400M assembly ticking over for about three years, but that time was running out for the European army plane barring a surge of new orders or reversals of budget cuts as Europe reviews defence spending under pressure from US President Donald Trump.
Reuters
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