- 661(1) commercial aircraft delivered in FY 2022
- Revenues € 58.8 billion; EBIT Adjusted up 16% to € 5.6 billion
- EBIT (reported) € 5.3 billion; EPS (reported) € 5.40
- Free cash flow before M&A and customer financing € 4.7 billion
- Dividend proposal: € 1.80 per share
- 2023 guidance issued
Airbus SE (stock exchange symbol: AIR) reported consolidated Full-Year (FY) 2022 financial results and provided guidance for 2023.
“The industry continued its recovery during 2022, with air traffic increasing and airlines turning to their long-term fleet planning. We delivered solid financials despite an adverse operating environment that prevented our supply chain from recovering at the pace we expected. The Company had to adjust its operations accordingly, which led to lower commercial aircraft deliveries than originally planned. We are adapting our production to match supply,” said Guillaume Faury, Airbus Chief Executive Officer. “As we move forward in 2023 we are focused on our industrial activities and the longer-term transformation of the Company. The solid 2022 financial performance and our confidence in the future lead us to propose a higher dividend payment this year.”
Gross commercial aircraft orders increased to 1,078 (2021: 771 aircraft), with net orders of 820 aircraft after cancellations (2021: 507 aircraft) corresponding to a net book-to-bill ratio significantly above 1. The order backlog amounted to 7,239 commercial aircraft at the end of 2022. Airbus Helicopters registered 362 net orders (2021: 414 units), with a book-to-bill above 1 both in units and value. Helicopter orders were well spread across programmes and included 12 H160s. Airbus Defence and Space’s order intake by value was € 13.7 billion (2021: € 13.7 billion), corresponding to a book-to-bill of around 1.2. Key orders included Demonstrator Phase 1B of the Future Combat Air System, the Eurodrone unmanned aerial system and 20 latest-generation Eurofighters for the Spanish Air Force.
Consolidated order intake by value increased to € 82.5 billion (2021: € 62.0 billion) with the consolidated order book valued at € 449 billion at the end of 2022 (year-end 2021: € 398 billion). The increase in the consolidated backlog value mainly reflects the book-to-bill above 1 and the strengthening of the US dollar.
Consolidated revenues increased 13 percent to € 58.8 billion (2021: € 52.1 billion). A total of 661(1) commercial aircraft were delivered (2021: 611(2) aircraft), comprising 53 A220s, 516 A320 Family, 32 A330sand 60 A350s. Revenues generated by Airbus’ commercial aircraft activities increased 15 percent year-on-year, mainly reflecting the higher deliveries and the strengthening of the US dollar. Airbus Helicopters delivered 344 units (2021: 338 units), with revenues rising by 8 percent, mainly reflecting growth in services and a favourable mix in programmes. Revenues at Airbus Defence and Space increased 11 percent, mainly driven by higher volume in Military Aircraft and Eurodrone. A total of 10 A400M airlifters were delivered in 2022, compared to 8 in 2021.
Consolidated EBIT Adjusted – an alternativeperformance 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 € 5,627 million (2021: € 4,865 million).
EBIT Adjusted related to Airbus’ commercial aircraft activities increased to € 4,600 million (2021: € 3,570 million). The increase reflects the higher deliveries and is supported by some non-recurring elements – mainly the positive impacts from retirement obligations and from the progress made on compliance related topics – partly offset by a less favourable hedge rate compared to FY 2021.
On the A320 Family programme, the ramp-up trajectory has been adapted with suppliers. The Company is now progressing towards a monthly production rate of 65 aircraft by the end of 2024 and 75 in 2026. Entry-into-service for the A321XLR is expected to take place in Q2 2024.
The A330 monthly production rate increased to around 3 at the end of 2022 as planned and the Company now targets to reach rate 4 in 2024. The A350 monthly rate is now around 6 aircraft. In order to meet growing demand for widebody aircraft as international air travel recovers, and following a feasibility study with the supply chain, the Company is now targeting a monthly production rate of 9 A350s at the end of 2025.
Airbus Helicopters’ EBIT Adjusted increased to € 639 million (2021: € 535 million), reflecting higher services and programme execution. Non-recurring elements included the positive impact related to retirement obligations booked in Q1.
EBIT Adjusted at Airbus Defence and Space decreased to € 384 million (2021: € 696 million), mainly reflecting the impairment related to the loss of two Pleiades Neo satellites in December and to delays on the Ariane 6 launcher, as well as the impact of rising inflation. This was partly offset by higher volume in Military Aircraft, the ramp-up in Eurodrone and the positive impact related to retirement obligations booked in Q1.
On the A400M programme, development activities continue towards achieving the revised capability roadmap. Retrofit activities are progressing in close alignment with the customer. In 2022, an update of the contract “Estimate at Completion” was performed and an additional charge of € 0.5 billion recorded. This mainly reflects updated assumptions, including inflation and risks related to the remaining SOC3 contractual development milestones to be achieved. 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 € 3,079 million (2021: € 2,746 million).
Consolidated EBIT(reported) amounted to € 5,325 million (2021: € 5,342 million), including net Adjustments of € -302 million.
These Adjustments comprised:
- € +308 million related to the dollar pre-delivery payment mismatch and balance sheet revaluation, of which € -41 million were in Q4;
- € +28 million related to the A380 programme, of which € -5 million were in Q4;
- € -477 million related to the A400M programme, of which € -258 million were in Q4;
- € -82 million related to the Aerostructures transformation in France and Germany, of which € -34 million were in Q4;
- € -79 million of other costs including compliance, of which € -35 million were in Q4.
The financial result was € -250 million (2021: € -315 million). It mainly reflects the net interest result of € -232 million. It also includes a negative impact from the revaluation of financial instruments and a positive impact from the revaluation of certain equity investments. Consolidated net income(3) was € 4,247 million (2021: € 4,213 million) with consolidated reported earnings per share of € 5.40 (2021: € 5.36).
Consolidated free cash flow before M&A and customer financing was € 4,680 million (2021: € 3,515 million), supported by the favourable foreign exchange environment and a strong positive phasing impact from working capital. Consolidated free cash flow was € 4,324 million (2021: € 3,511 million). The 2021 dividend of € 1.50 per share, or € 1.2 billion in total, was paid in Q2 2022 while pension contributions totalled € 0.6 billion during the year. The gross cash position stood at € 23.6 billion at the end of 2022 (year-end 2021: € 22.7 billion), with a consolidated net cash position(4) of € 9.4 billion (year-end 2021: € 7.7 billion).
The Board of Directors will propose the payment of a 2022 dividend of € 1.80 per share (2021: € 1.50 per share) to the 2023 Annual General Meeting taking place on 19 April 2023. The proposed payment date is 27 April 2023.
As the basis for its 2023 guidance, the Company assumes no additional disruptions to the world economy, air traffic, the supply chain, the Company’s internal operations, and its ability to deliver products and services.
The Company’s 2023 guidance is before M&A.
On that basis, the Company targets to achieve in 2023 around:
- 720 commercial aircraft deliveries;
- EBIT Adjusted of € 6.0 billion;
- Free Cash Flow before M&A and Customer Financing of € 3.0 billion.
The Company has now also received approval from the Science Based Targets initiative (SBTi) for its greenhouse gas emission reduction near-term targets. These targets, in line with the Paris agreement’s objectives, are based on climate science and cover the full set of the Company’s emissions. Airbus intends to reduce its Scope 1 and Scope 2 industrial emissions by up to 63% by 2030, in line with a 1.5°C pathway. The Company also committed to reducing by 46% the greenhouse gas emissions intensity generated by its commercial aircraft in service (Scope 3 – Use of Sold Product) by 2035.