Airbus delivered 27 commercial aircraft delivered in the first quarter of 2023 (Q1 2023), contributing to reported revenue of €11.8bn and €800 million in earnings (EBIT adjusted).
Consolidated net income was €466 million, a 62% fall year-on-year, with earnings per share coming to 59 cents, the company said. Reported earnings were €400 million with commercial aircraft activities up 5% year-on-year.
Commercial aircraft orders totalled 156, down from over 250 in Q4 2022,, with net orders of 142 aircraft after cancellations. Airbus' order backlog was 7,254 commercial aircraft at the end Q1 2023, during which Airbus Helicopters registered 39 net orders, with division revenue up 26%, while Airbus Defence and Space’s order intake by value was €2.5bn, with revenue down 6%.
Consolidated free cash flow before M&A and customer financing was € -889 million, which Airbus said was "mainly reflecting the necessary inventory build-up as the Company executes the production ramp-up".
Consolidated free cash flow was € -886 million, with the gross cash position at € 22.4bn at the end of the quarter, along with a consolidated net cash position of € 8.4bn.
“The first quarter confirmed strong demand for our products, particularly for commercial aircraft. We delivered 127 commercial aircraft, which is reflected in the Q1 financials. The quarter also benefited from a good performance in Helicopters,” said Guillaume Faury, Airbu' chief executive.
Consolidated EBIT adjusted, which Airbus said is "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", fell to to €773 million, compared with Q1 2022's €1.2bn.
EBIT Adjusted related to Airbus’ commercial aircraft activities decreased to €580 million from just €1bn over the same timeframe, which "reflects the lower deliveries, a slightly less favourable hedge rate compared to Q1 2022 and investments for preparing the future", the company said.
Airbus Helicopters’ EBIT Adjusted increased to € 156 million from €90 million, "reflecting the solid performance across programmes, favourable mix effects and the good start in services".
EBIT Adjusted at Airbus Defence and Space decreased to €36 million from €106 million, due to "the lower volume in Military Air Systems and in Space Systems. Q1 2022 also included net positive non-recurring elements".
Consolidated self-financed R&D expenses totalled €683 million, up by almost €100 million.
Consolidated reported EBIT amounted to €390 million, which included net Adjustments of € -383 million, made up of -360 million related to the dollar pre-delivery payment mismatch and balance sheet revaluation; € -9 million related to the Aerostructures transformation; € -14 million of other costs including compliance.
The company said it expects to deliver 720 aircraft in 2023 and to report EBIT adjusted of €6bn.
“We continue to face an adverse operating environment that includes in particular persistent tensions in the supply chain. Our 2023 guidance is unchanged with commercial aircraft deliveries expected to be backloaded. We remain focused on delivering the commercial aircraft ramp-up and longer-term transformation," Faury added.