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Airbus’ 9M 23 figures missed the company-collected consensus estimate by 1% on revenue and by 11% on adjusted EBIT, largely due to the struggling Defence and Space segment in which a one-off charge of EUR0.4bn was booked due to the re-estimation of costs and re-assessment of risks, opportunities and competitiveness of the existing as well as the under-development projects. However, due to good performances from the other businesses and a FX tailwind, the company has re-iterated its FY23 guidance
Companies: Airbus (AIR:EPA)Airbus SE (AIR:PAR)
AlphaValue
Airbus published its Q1 figures which beat our expectations. While the revenues were in line with our expectations, adjusted EBIT was 6% above AV’s estimate, thanks to higher deliveries and a favourable hedge rate. With no surprise, Airbus’s commercial order intake increased by 303%, leading to a record level in the order book of €7.9bn. While the company confirmed its FY23 targets, its FY26 delivery target will be watched closely due to the additional headwinds we have in sight.
Airbus published its Q1 figures below our and the market’s expectations. Revenues were 4% above our estimate but the adjusted EBIT was a miss by 8%. However, the management re-confirmed that the FY23 guidance announced earlier this year had encompassed a weak Q1 and is confident of achieving its FY23 target. Following this results release, we will revise our Q2 figures downwards while leaving our estimates for FY23 unchanged. Hence, there will be no impact on our target price.
Despite an adverse operating environment, Airbus’s FY figures beat the consensus on all metrics. However, the supply chain is still far from full recovery and hence the company has postponed its 75/month narrowbody delivery target from 2025 to 2026. The guidance for 2023 stands at 720 deliveries and an adjusted EBIT of €6bn, which is below our current estimate. Hence, we will revise our estimates downwards.
Airbus reported a solid set of results and, most importantly, maintained its delivery guidance for the full year. The supply chain remains challenging, but Airbus believes it now has most of the components it needs to achieve its target. Despite Airbus’ low profitability in its core activity, thanks to the massive order intake in the Q3 the strong PDPs have generated an impressive FCF, prompting Airbus to readjust its FCF guidance upwards for the full year.
Airbus has reiterated its guidance, with a delivery target of 700 jets for FY22 and an expected production rate of 75 jets per month by 2025. Profitability is expected to reach the pre-covid levels by 2024. Although Airbus seems conservative in its profitability guidance, its delivery target seems out of reach.
Airbus will hold its long-awaited Capital Markets Day tomorrow in Toulouse, with the objective to restore confidence on the stock after having revised downwards its initial objectives last quarter. We believe there could be additional drama.
Airbus has reported the toughest quarter since the pandemic. It is even worse as it surprised the market, given the positive signals coming from Farnborough and the massive contracts it has signed recently. The supply chain has been particularly tough on the engine markers’ side, and Airbus has had to adjust its guidance downwards, from 720 jet deliveries to 700. Luckily, its low-cost base combined with several one-offs has still enabled Airbus to report miraculously strong profitability.
Airbus has published a massive beat in profitability and confirmed its ramp-up roadmap of 75 jets produced per month by FY25. Its strong A320 deliveries and the cost containment measures since COVID-19 have driven margins higher than all expectations. The FY22 guidance has been reiterated despite the impressive EBIT, due to macro-economic/geopolitical uncertainties in the near future. The only slight downside comes from the postponement of its A321XLR programme.
Airbus’s Q4 figures have beaten the consensus on all metrics, confirming its transition from a company mitigating its losses to a company well on track for growth. The success of its A320 family is unquestionable, and its high cash generation has enabled Airbus to propose a dividend again, and a stronger one than expected. Only the FY22 guidance seems conservative.
Airbus has provided a solid set of results for its Q3. Indeed, even though sales came in slightly below consensus, the profitability was better than anticipated. The guidance adjusted EBIT has been increased consequently.
Airbus reported a solid set of results and upgraded its minimum guidance for FY21. Through important one-offs and cost savings, it managed to explode the consensus on profitability. Airbus also reassured the market on future deliveries, a luxury that few companies in this industry can afford.
Airbus has shown robust sales in a complicated industry. The margins and cash were abnormally high this quarter due to good cost efficiency and significant one-offs. The company maintains its previously announced guidance, as the pandemic situation is still unpredictable.
2020 was quite a year, and the company’s performance was very decent given the circumstances. The positive note of the publication was the strong cash generation achieved in Q4. However, this has been shadowed by a very conservative guidance for 2021.
Overall, the Q3 report was broadly in line with expectations. Q3 showed a clear improvement over Q2 on the back of the production/delivery convergence in Airbus commercial. Airbus recognized €1.2bn in restructuring charges this quarter, in both Commercial and Defence, which dampened its reported EBIT. The cash performance was better than anticipated and the target for no cash consumed in Q4 is maintained.
Companies: Airbus SE
Research Tree provides access to ongoing research coverage, media content and regulatory news on Airbus SE. We currently have 35 research reports from 6 professional analysts.
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth
Companies: Strix Group PLC
Zeus Capital
Companies: Yu Group PLC
Liberum
Companies: FOG PEB KBT EMR TIME GETB JNEO
Cavendish
Cohort announces that its subsidiary SEA (Systems Engineering and Assessment Ltd.) has been awarded a major contract by the UK’s Ministry of Defence to provide Electronic Warfare Counter Measures (Increment 1a) (EWCM 1a) to the Royal Navy with a total value of at least £135m. This includes provision and support of SEA’s Trainable Decoy Launcher System, Ancilia. At the FY 24 interim results Cohort had commented on an overall “increased tempo” of order intake. The Group reported a closing order b
Companies: Cohort plc
Equity Development
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
Companies: AEIT ROOF DGI9 INPP GSF SEIT USFP HICL ORIT BSIF TRIG NESF SEQI HEIT GRP GCP FSFL 3IN AERI PINT RNEW BBGI GSEO DORE TENT GRID CORD HGEN AEET
Hardman & Co
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik
Companies: Luceco PLC
Quadrise continues to advance towards commercial revenues for its innovative fuel and biofuel technologies, with each of its projects approaching key milestones in 2024. Preparatory steps for the MSC Shipmanagement (MSC) fuel trials are now complete and fuel supply agreements are nearing finalisation. Quadrise will achieve its first licensing revenues on the successful completion of Valkor’s project financing (timing uncertain). Quadrise also successfully concluded its Morocco trial, paving the
Companies: Quadrise PLC
Edison
Companies: FOG TND BVXP ACC HDD
Companies: Flowtech Fluidpower plc
Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base, total revenue increased an impressive 20.2% to £136.1m (organic +15%), with adj. PBT +7.5% to £31.7m (FY2022: £28.3m), 3.1% ahead of our estimate of £30.5m. Fully diluted (FD) adjusted EPS increased a more muted 2.6% (impacted by anticipated tax headwinds) to 368.5p (basic adj EPS 374.5p), 3.4% ahead of
Companies: Judges Scientific plc
WHIreland
Companies: Michelmersh Brick Holdings PLC
Canaccord Genuity
Companies: BILN IGP RBN SBTX
Gelion has reported in line H1 FY24 results that demonstrate continued strong cash management and steady progress in its pursuit of next generation lithium-sulphur battery technologies. Encouraging early test results justify last year’s IP acquisitions and validate Gelion’s Li-S battery technology plan, with additional progress expected to be reported in H2 alongside its pursuit of a strategic partner for its planned Advanced Commercial Prototyping Centre (ACPC) facility in Australia. There is a
Companies: Gelion PLC
Forterra’s FY23 (to 31 December) earnings were slightly higher than guidance, which was raised in January, with resilient pricing partly offsetting a steep fall in demand among its main end users, large housebuilders. Our estimates are broadly unchanged, other than reflecting a more conservative stance on the final dividend. Despite a cautious tone in the outlook statement, we believe the largest housebuilders may now rebound more strongly than smaller peers.
Companies: Forterra Plc
Progressive Equity Research
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