04 May 2023
If you are covering Airbus’ results, please see the following comment from Jarek Pominkiewicz, equity research analyst at Quilter Cheviot:
"1Q23 revenues of €11.8bn were down 2% YoY, but 3% ahead of consensus. Helicopters was the key beat for the company, up 26% YoY due to higher deliveries, a favourable mix and strong quarter in services. Commercial was better-than-feared, at -5%, with lower deliveries (-9% YoY) partly offset by the impact of stronger US Dollar.
"Meanwhile, its defence & space business was less good, declining by -6% YoY due to lower volume in Military Air Systems and in Space Systems. Adjusted EBIT comes in at €773m, but while down 39% YoY, it was 5% ahead of consensus, corresponding to a margin of 6.6%, down 390bps YoY, but 10bps ahead of consensus.
"The company’s cash flow is better than expected. Its full-year FCF before M&A and customer financing was better than expected at on outflow of -€889m, vs consensus outflow -€1.1bn, with the reversal vs +€167m in 1Q22 mainly due to lower profits and only 5 A350 deliveries.
"The softness was expected, beat is pleasing, but the focus is really on deliveries and here no slippages. With monthly deliveries getting better (Jan/Feb/Mar of 20/46/61), we expect continued improvement through the year, albeit significantly 4Q23-weighted (as seasonally typical)."
