Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Airbus profit slips, sees short-term supply chain issues

(Sharecast News) - Aircraft maker Airbus on Thursday said annual operating profit fell 8% despite higher revenues amid suuply-chain challenges for some of its plane production. Aircraft maker Airbus on Thursday said annual operating profit fell 8% despite higher revenues amid short-term supply chain challenges for some of its plane production.

The company posted adjusted operating profit to €5.35bn, slightly less than consensus estimates of €5.43bn. Revenue was up 6% to €69.2bn.

Airbus said it planned to deliver 820 jets this year, compared with 766 jets in 2024 and slightly short of consensus estimates of 825. It said aerospace supply challenges were impeding increased production of its A350 and A220 models, and there would also be delays to a new freighter version of its A350 wide-body jet by around a year to the second half of 2027.

It also expects adjusted earnings before interest and tax of €7bn, although this excluded the impact of potential new tariffs as threatened by US President Donald Trump on steel and other industries.

"Specific supply chain challenges, notably with Spirit AeroSystems, are currently putting pressure on the ramp up of both the A350 and the A220," chief executive Guillaume Faury said on an earnings call.

"We continue to see positive momentum in both the civil and military markets and we remain focused on securing new business opportunities in both our home countries and on export markets."

"We are still facing some specific supply chain issues. The tensions on engines for narrow body persist, notably with (engine maker) CFM. This is already affecting us as we begin to have the so called gliders, meaning aircraft waiting for their engines aircraft being fully assembled, but waiting for their engines."

Faury warned the would result in a low delivery number for the first quarter and lower year on year.

Free cash flow last year was €4.46bn and was forecast to be €4.5bn in 2025, he added.

"While the initial 2025 guide brackets the low end of investor expectations, we believe the investor reaction to the 4Q24 results will be positive, and confidence in the future production rates for commercial programs should be incrementally higher," said analysts at RBC.

Reporting by Frank Prenesti for Sharecast.com

Share this article

Related Sharecast Articles

GSK gets preliminary nod for two respiratory drugs in Europe
(Sharecast News) - GSK said on Friday afternoon that two of its respiratory medicines had received positive opinions from the European Medicines Agency's Committee for Medicinal Products for Human Use, bringing the company closer to potential approvals across severe asthma, chronic rhinosinusitis with nasal polyps and chronic obstructive pulmonary disease.
Shore Capital hails improved US biotech funding environment for hVIVO
(Sharecast News) - Shares in AIM-listed hVIVO were continuing their recent surge on the back of encouraging signs from the US biotech market, which broker Shore Capital said has created a "much more favourable environment" for the company.
Weir to buy remaining 50% stake in Chile JV ESEL for £56m
(Sharecast News) - Weir said on Friday that it has agreed to buy the remaining 50% share of its Chile-based joint venture ESEL for a sterling equivalent purchase price of £56m.
Jefferies downgrades Whitbread, upgrades IHG
(Sharecast News) - Jefferies downgraded Whitbread to 'hold' from 'buy' on Friday as it applied the reverse upgrade to InterContinental Hotels.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.