Airbus SE

Overview Key strengths Key risks One of the two global producers of large commercial aircraft (100 seats or more), alongside Boeing; both with very strong narrowbody demand and full order books. Current production rates highly skewed to the successful A320 models, resulting in some platform concentration risk until widebody rates recover. Material portfolio diversification, offering a wide range of products including civil and military aircraft, satellites, electronics, defense systems, civil and military helicopters. Highly dependent on timely delivery of high quality and complex components by suppliers to ensure production rates increase in line with orders. Higher market share (than main competitor Boeing) in narrowbody civil aircraft, a segment currently enjoying much stronger recovery and demand for new aircraft than the

...We expect Airbus to exhibit a continued robust operating performance in 2023 and 2024. In the rolling 12 months to June 30, 2023, Airbus' revenues grew to 61.6 billion and S&P Global Ratings- adjusted EBITDA to almost 7 billion (11.2% margins), free operating cash flow (FOCF) generation reached 4 billion, and the group maintained its strong net cash position; therefore, debt to EBITDA and funds from operations (FFO) to debt credit metrics remain nonmeaningful. Airbus delivered 316 commercial aircraft in the first half of 2023 and announced 800 new orders at the Paris Airshow, including a record 500-plane deal with Indian airline IndiGo. The group's order backlog now stands at a record 7,967 aircraft as of end of June 2023. Management continues to guide to 720 commercial aircraft deliveries for 2023, adjusted EBIT of 6 billion, and FOCF before mergers and acquisitions (M&A) and customer financing of 3 billion. In our base case, we forecast the group's topline will grow to more than 64 billion...

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