Airbus SE Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Benjamin Heelan - BofA Global Research - Analyst : Thank you for the color on tariff scheme. First question, could you talk about the supply chain and how the supply chain has reacted to the tariffs?

Question: Benjamin Heelan - BofA Global Research - Analyst : And just as a follow-on, your comments earlier about the direct impact of tariffs can be contained in the current framework, should we assume that that is from an earnings and cash flow perspective? And when you think about that, is there more risk around cash? Is there more risk around earnings? How can we think about that for 2025?

Question: David Perry - JPMorgan Chase & Co. - Analyst : So my two questions, first one is on FX. We're seeing the dollar a little bit weaker, a lot of economists think it could get weaker, let's see. But are you thinking of taking any special measures to offset the headwind or potential headwind here? The second one is you've talked a lot on tariffs about your costs of the stuff you're buying, coming into your files and the measures you'll take there. Obviously, the other side of it is the planes you are selling to airlines. And I know you've always said that the airline has to pay the tariffs. You've been very clear about that. We've seen some airlines say that they're not willing to pay the tariffs. Can you just comment on that, some of the -- any color on your talks with the airlines and what you think your pricing power is in terms of adding in tariff surcharges.

Question: David Perry - JPMorgan Chase & Co. - Analyst : Very clear on the second. So I think, Thomas, just on my first question, maybe I didn't ask it correctly. I wasn't imagining you would change your hedging policy. But the current hedging policy at the current rate would mean an FX headwind in the coming years. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 30, 2025 / 4:30PM, AIR.PA - Q1 2025 Airbus SE Earnings Call So I just wondered whether, when I asked about specific measures to deal with it, I mean, would that be through raising prices? Would it be from cost reduction? Just what levers you would have if the FX rate went against you?

Question: Ross Law - Morgan Stanley & Co LLC. - Analyst : The first is just following up on Ben's question. You specifically called out supply chain challenges and a back end loaded profile. And it seems from reading the press release that this was sort of an incrementally more cautious message. But I think you said in your opening remarks and also to Ben's question that supply chain issues haven't changed. So can I just double check whether anything has got worse or change at all with regards to the outlook for the supply chain as we know it today? And then the second question is just on the phasing of deliveries, specifically with regards to Q2. Do we expect these to be lower year-over-year like they were in Q1?

Question: Olivier Brochet - Redburn Atlantic - Analyst : Guillaume, Thomas. I have a very simple one first. On the overstaffing, where are you today and where would you be at year-end? And second question would be on defense. Based on the discussions you have with your customers, and very helpfully listed quite a few orders, where do you see most upside for you in terms of geographies and products please?

Question: Robert Stallard - Vertical Research - Analyst : I've got a couple of quick, easy ones for you, hopefully. First of all, on the SPS fastener fire, it's been about three months now since that occurred. Have you seen any impact on your supply chain as a result of that? And then secondly, with regard to the A350, I was wondering if you could give us a bit more detail about what the issues are at Spirit and whether this does jeopardize your plans for the ramp-up on the A350.