Airbus SE Q3 2024 Earnings Call Transcript

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

Question: Ross Law - Morgan Stanley - Analyst : I've got three, if I can. Firstly, on the delivery guidance, what's the range included in the term around 770. Is it 10 aircraft, 20 aircraft or more? And what's giving you the confidence that you reached this level given that you're not building gliders? Second question on the A320. So you reiterated the rate 75 in 2027, but I believe in a recent media interview, Christian Scherer mentioned 2027, '28. Is this a softening of the matters here? And lastly, on space, how far are you now through the audit? And what are the findings of this since the first half?

Question: Chloe Lemarie - Jefferies - Analyst : I have two, if I may. So the first one is on Airbus commercial performance, if I could dig into this. On the lead initiative impact in Q3 and what would see in Q4, but also on potential compensation impact whether you've been receiving compensation from some suppliers, whether you've been paying compensation to some of your customers and how we should think about this impacting Q3 and maybe Q4. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2024 / 6:30PM, AIR.PA - Q3 2024 Airbus SE Earnings Call And the second one is still on Space. I mean we understand this is a challenged sector at the moment. But I mean what could be done to help the sector if there's too much a position to consolidation within Europe?

Question: Chloe Lemarie - Jefferies - Analyst : Just going back on the compensation question. So we should not expect any material compensation paid out to your customer in Q4. That's how we should think about it?

Question: Victor Allard - Goldman Sachs - Analyst : First question, I was hoping if you could give us an update on how you see the shape of the ramp by platform in the coming years. considering the visibility that you have today. I guess where I'm coming from is hearing from you Guillaume and looking at the press release this evening, you have noted that specific challenges on the A350, which may have an impact on the trajectory for 2025. So any qualitative color that you have here would be helpful. And the second question is on inflation. So -- we've seen G-FAST and Banque de France report on the state of the French supply chain at least in Q3. There are still many suppliers struggling indeed. So is that something which hold you back today to revise your view on inflation and to provide more color on its evolution looking into next year and beyond.

Question: Robert Stallard - Vertical Research Partners - Analyst : Okay. A couple of questions from me. First of all, following up on the prior question on the supply chain. I was wondering, Guillaume, if you could give us an update on the narrowbody engine situation, whether it has improved sequentially and whether you're getting better visibility on the ramp going forward from here? And then secondly, I was wondering if you've seen any indirect negative impact on Airbus suppliers from the ongoing Boeing strike.

Question: Christophe Menard - Deutsche Bank - Analyst : I had two. The first one is on helicopters. You had a strong performance in Q3, I understand services. The margin level is high. I mean does it mean that we could consider higher potential midterm target that you presented about two years ago on that division? Or is it just a one-off that we have in Q3? Second question is on the -- you mentioned when you reiterated guidance that it was excluding any impact of the Spirit acquisition on the financials. Can you give us an indication or a preliminary view of what type of impact it could have on your guidance when the Spirit acquisition is consolidated.

Question: Ken Herbert - RBC Capital Markets - Analyst : Two questions, if I could. The first, the full-year reiterated guide obviously implies a very significant ramp in the fourth quarter on both adjusted EBITDA and in particular, on free cash flow on just basically '25 to '26 more deliveries. The first question is, is there anything unusual in fourth quarter timing around the cash flow that we should keep in mind that could be maybe incrementally positive or more positive than you've seen in prior years? And then maybe, Guillaume, as a second question, obviously, the supply chain continues to struggle on many levels. Is there anything you're looking at fundamentally to change the relationship with your supply chain now, either from an investment contract terms? Is there anything you think you can do that maybe you haven't looked at to just broadly help with the supplier performance here for the next couple of years so that so that the longer-term targets -- we can increase confidence in the longer-term targets?

Question: Philip Buller - Berenberg - Analyst : I've just got a couple of sure follow-ups, if I may. On the last topic we just discussed in terms of trying to navigate the ramp-up as best as possible. Your Q4 delivery push is very large, and it does seem to get bigger as time goes by. So I'm wondering if this is part of the problem in itself. I'm not suggesting that we don't deliver clients that are ready to go, but I'm wondering if perhaps that's one of those things that you can control, which would actually enable a more linear ramp? That's the first one. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2024 / 6:30PM, AIR.PA - Q3 2024 Airbus SE Earnings Call

Question: Philip Buller - Berenberg - Analyst : Understood. And two very quick follow-ups, if I may. The Spirit due diligence process I understand it is binding. Is the compensation level also binding that's been disclosed? Or could that change? And the second one, you talked about inflation earlier on the call. I just wanted to understand if there was a steer perhaps for how we should think about that into 2025. I think it's understood for '24, but is that likely to remain kind of a mechanical headwind into 2025, please?