Airbus Holds Full-Year Targets, Banking on Record Q4 Deliveries

Airbus on Wednesday maintained its full-year financial forecasts and production plans, signaling confidence that a record fourth-quarter performance will allow it to meet its ambitious aircraft delivery target.

The world's largest planemaker is betting on a significant year-end surge to reach its goal of delivering approximately 870 aircraft in the current year, which would be its highest annual total ever.

Third-Quarter Financials

Airbus reported mixed results for the three months ending in September. While supply-chain pressures have reportedly begun to ease, the company's performance reflected a complex operating environment.

• Adjusted Operating Profit: Reached €1.77 billion ($2 billion), broadly in line with analyst estimates compiled by the company.
• Revenue: Fell 2% to €17.47 billion, missing the consensus forecast of €17.91 billion.
• Free Cash Flow: Year-to-date free cash flow before customer financing was a negative €1.27 billion, which the company attributed to higher inventories as it prepares for the end-of-year delivery ramp-up.

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Focus on Execution

The company's ability to hit its delivery target now hinges entirely on its fourth-quarter execution. Airbus traditionally accelerates deliveries in the final months of the year, but has in the past been forced to lower its targets due to disruptions from engine shortages and other supply-chain constraints.

"Against a complex geopolitical and operating environment, we are focused on delivery while maintaining a steadfast focus on quality," CEO Guillaume Faury said in a statement. "Our plan is clear, and our teams are onboard to meet our objectives."