Airbus Helicopters maintains revenue despite lower deliveries
PHI deploys two Airbus H175s in Australia.
Airbus Helicopters reported flat growth in first nine months (9M) of 2024, with revenue inching up by a slight 5% year-over-year to €4.8bn ($5.2 bn) despite delivering fewer helicopters totalling 190 units; seven lower than same period last year.
The company attributed higher revenue growth, despite lower deliveries, to a more favourable mix in programmes and a solid performance in services, suggesting successful implementation of its value-oriented strategy.
“We saw strong demand across our product range in the first nine months of the year. The nine-month earnings reflect the level of commercial aircraft deliveries, a solid performance in helicopters and the charges in our space business recorded in the first half,” said Guillaume Faury, CEO, Airbus in a statement accompanying the results.
Despite tepid growth in revenues, the segment’s earnings before interest and taxes (EBIT) witnessed a 1% increase to $457.8m in nine months under review.
Airbus Helicopters saw a positive trend in order intake, with a 61% increase in new orders compared with the previous year. The company’s order book at the end of September stood at 922 units, representing a 23% year-over-year growth.
This healthy growth in the order book suggests strong future revenue visibility, potential production stability for coming years and improved market position relative to competitors.
The strong performance in services indicates a successful evolution of the business model, with growing recurring revenue streams and successful aftermarket strategy implementation. This diversification provides resilience against cyclical new sales patterns and suggests successful movement up the value chain.
While the overall performance in the helicopters segment was strong, the slight decline in deliveries warrants attention. It might indicate production constraints or supply chain challenges, which could impact future revenue recognition if not addressed.
However, the company’s ability to maintain profitability despite lower deliveries demonstrates good cost control and successful navigation of operational challenges.
“For Q3 [third quarter] of helicopters, you’ve seen that they had lower deliveries, but still essentially a result at the same level as of last year. That is due to a very positive mix and also the good level of services that they had, but that would not lead me to the temptation to increase their results or to increase the guidance for the trajectory of helicopters, which is a very, very positive. And I would leave it here, so not to be over interpreted that Q3, indeed, despite relatively low deliveries, had a good result,” said Thomas Toepfer, chief financial officer (CFO) at Airbus.
On a consolidated basis, Airbus reported a 5% year-on-year (YoY) increase in revenue to $48.4bn during the nine months under review translating into a 22% increase in earnings per share at $1.35 from $1.11 in the same period last year.
