Airbus holds annual targets as investors watch year-end delivery push

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Airbus annual delivery targets

Highlights

Airbus reports Q3 adjusted operating profit of 1.77 billion euros, in line with estimates, while revenue falls 2% to 17.47 billion euros, missing consensus.
The company maintains its full-year target of delivering around 870 aircraft, requiring a record fourth quarter in deliveries and unchanged production plans.
Free cash flow before customer financing is negative 1.27 billion euros year-to-date due to higher inventories amid ramped-up production for expected strong year-end deliveries.

Third-quarter results and delivery plan

As reported by Reuters, Airbus says adjusted operating profit reaches 1.77 billion euros in the three months to the end of September, broadly matching analysts' estimates compiled by the company, while revenue falls 2% to 17.47 billion euros and misses the 17.91 billion euro consensus.

The company maintains its target of delivering around 870 aircraft this year and leaves production plans unchanged. To achieve that goal, Airbus needs a record fourth quarter, continuing its usual pattern of heavier deliveries in the final months of the year.

Chief Executive Guillaume Faury says in a statement that Airbus remains focused on deliveries and quality despite what he describes as a complex geopolitical and operating environment. He says the company's plan is clear and that teams are aligned to meet its objectives.

Supply chain pressures and cash flow focus

Airbus has previously been forced to lower delivery targets late in the year when engine shortages and other supply-chain constraints disrupt production. Those pressures have recently started to ease, supporting the group's bet on a stronger end to the year.

Free cash flow before customer financing since January stands at negative 1.27 billion euros, reflecting higher inventories as Airbus prepares for stronger delivery performance later in the year and ramps up production for year-end handovers. The figures leave investors focused on whether improving operations can translate into enough completed aircraft to meet the annual target.

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