Airbus SE Reports August Performance

Airbus SE (EPA:AIR) reported a slight decline in deliveries for August, with the company delivering 47 aircraft and receiving 45 new orders. August typically sees lower activity due to European vacations.

Key Highlights

• Deliveries accounted for just 6.1% of Airbus’s annual target of 770 aircraft, slightly below the usual average of 6.7%, according to Citi Research analysts.
• The company recorded 45 first flights in August, lower than the monthly average of 5.8% and significantly less than the year-to-date average of 60.5%.
• Analysts suggest that September will be a more reliable month for assessing the likelihood of meeting fiscal year targets.

So far, Airbus has completed 447 deliveries, achieving 58.1% of its annual goal, slightly above the average of 57.2%. The backlog remains robust at 8,564 aircraft, with year-to-date orders corresponding to deliveries, indicating a healthy pipeline.

Risks to Stock Performance

Several risks could adversely affect Airbus’s stock and its ability to meet target prices:
– Societal attitudes toward air travel post-COVID-19 may alter long-term demand.
– Uncertainty regarding aircraft deliveries in the near to medium term.
– Increased vendor financing demands could challenge cash flows, especially if credit markets tighten.
– Currency appreciation of the euro against the US dollar could impact profitability.
– The complexity of Airbus’s operations adds uncertainty to accurate modeling and valuation.

Citi’s analysts warn that if these risks amplify beyond expectations, they could hinder Airbus’s stock price from meeting targets. However, if the risks are less significant, the stock could exceed projections.

At 6:50 am (1050 GMT), shares were down 1.2%.