Airbus SE (OTC: EADSY) reported a slight decline in fiscal 2023 fourth-quarter net income compared with a similar quarter of fiscal 2022. However, the aircraft manufacturer’s 4Q 2023 revenue was considerably higher than 4Q 2022.
Notably, EBIT (earnings before interest and taxes), one of the most watched metrics, recorded impressive growth. The company’s board also declared a special dividend while maintaining last year’s dividend. Furthermore, Airbus issued solid adjusted EBIT and commercial aircraft delivery guidance. The stock of Airbus ended Friday’s trading at $39.26, down $0.98, or 2.44%, from the prior close.
The Blagnac, France-based company reported fourth-quarter revenues of €22.89 billion, an increase of 11% from €20.64 billion in the fourth quarter of fiscal 2022. The increase was led by a rise in commercial aircraft deliveries and higher revenues from Airbus Helicopters and also Airbus Defense and Space segments.
For the latest quarter (4Q 2023), Airbus recorded net income of €1.46 billion, or €1.85 per share, a decline of 13% from €1.68 billion, or €2.13 per share, in 4Q 2022.
Notably, EBIT recorded an increase of 7% y-o-y to €1.89 billion. Also, adjusted EBIT rose by 3% y-o-y to €2.21 billion.
Commenting on the results, Guillaume Faury, Airbus CEO, stated, “In 2023, we recorded strong order intake across all our businesses and we delivered on our commitments. This was a significant achievement given the complexity of the operating environment.”
Segment wise:
- Airbus revenues surged 10%y-o-y to €16.26 billion.
- Airbus Helicopters revenues were €2.68 billion, up 6% from last year.
- Airbus Defense and Space jumped 19%y-o-y to €4.36 billion.
Airbus reported gross commercial aircraft orders of 2,319 aircraft in 2023, an increase from 1,078 in 2022. Net orders stood at 2,094 aircraft in 2023, up from 820 aircraft in 2022. Furthermore, the order backlog was 8,598 commercial aircraft at the end of 2023.
The total value of orders received by Airbus in 2023 was €186.5 billion, an increase from €82.5 billion in 2022. The aggregate order book is €554 billion at the end of 2023. In 2022, the aggregate order book of Airbus was €449 billion.
The Airbus Board of Directors intends to recommend a dividend payment of €1.80 per share for 2023, unchanged from the previous year. Additionally, the board plans to recommend a special dividend of €1.00 per share during the Annual General Meeting scheduled for April 10. Airbus aims to release dividend payments on April 18.
Looking forward, Airbus forecasts FY 2024 adjusted EBIT in the range of €6.50 billion to €7 billion, an increase from FY 2023 adjusted EBIT of €5.84 billion.
The company aims to deliver 800 commercial aircraft in FY 2024, up from 735 aircraft in FY 2023.
The mixed quarterly results and optimistic FY 2024 guidance are expected to keep Airbus’ stock range bound in the near term.
The historical price chart indicates that the stock of Airbus has broken the support level of $40. The next major support is anticipated to be only near $37. Additionally, the stock has closed below its 50-day moving average, while the MACD indicator is showing a negative reading. Therefore, we anticipate Airbus stock to remain in a downtrend in the near term.
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