Airbus Se Unsp/Adr

Ladies and gentlemen, thank you for standing by. Welcome to the Airbus Q1 2025 Resorts Release Conference Call. I'm Sharon, the operator for this conference. Please note that for the duration of the presentation, all participants will be in the listen-only mode and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions. At this time, I would like to turn the conference over to your hosts, Guillaume Fauré, Thomas Tupfer, Hélène Lagorge. Please go ahead.

Thank you, Sharon, and good evening, ladies and gentlemen. This is the Airbus Q1 2025 results release conference call. Guillaume Faury, our CEO, and Thomas Stupfer, our CFO, will be presenting our results and answering your questions. This call is planned to last around an hour. This includes Q&A, which we will conduct after the presentation. This call is also webcast, It can be accessed via our homepage by clicking on the dedicated banner. Playback of this call will be accessible on our website, but there is no dedicated phone replay service. The supporting information package was published on our website earlier today. It includes the slides, which we will now take you through, as well as the financial statements. Throughout this call, we will be making forward-looking statements I invite you to refer to our Safe Harbor Statement that appears in the presentation slide, which applies to this call as well. Please read it carefully. And now, over to you, Guillaume.

Thank you, Hélène. And hello, ladies and gentlemen. Thank you for joining us today, as said earlier, for the Q1 2025 results call. And we are here in Amsterdam with Thomas to warn you through our results. We continue to operate in a fast-changing operating environment, particularly when it comes to global trade uncertainty, which is adding complexity and the geopolitical shift shaping European defense, so mainly tariffs on the one hand, and the European defense situation on the other one. The evolving global type environment is uncertain in terms of implementation, scope, and duration. As of today, our direct financial exposure lies mainly with the cost increase of sub-assemblies imported into our final assembly lines located in the U.S. and China, with the caveat we might make later that things keep changing on the Chinese front. As we progress on our assessments, we are identifying the means to adapt and mitigate the impact by leveraging our industrial setup as well as our strong and diversified backlog. Moving to defense, we support the recent approach to make the European defense industry stronger and more competitive. This step change is calling for a significant spending increase in order to reduce the capability gaps and secure European strategic autonomy. We are engaging with governments to address the European priorities with our two divisions involved in defense matters, namely Airbus Defense and Space and Airbus Helicopters. In that context, the Q1 results show the progress we are making on our priorities across the business. In particular, we continue to move forward on our ramp-up, and we delivered 136 aircraft in Q1 this year. In light of the specific supply chain issues highlighted at the full year, we continue to expect the delivery profile to be back-end loaded. Our EBIT adjusted stood at €0.6 billion, reflecting in particular the commercial aircraft deliveries as well as the strong performance in defense and space. Our free cash flow before customer financing was negative €0.3 billion, reflecting the planned inventory build-up and the commercial momentum across businesses. Our full year 2025 guidance remains unchanged. It excludes tariffs, and we will come back to this later. We will also provide more color on the signed definitive agreement with Spirit Aerosystems, which we just announced. We are pleased to have reached this milestone, which contributes to securing stability for our ramp-up. Let's now look at our commercial environment, starting with commercial aircraft. In Q1, global air traffic continued to grow, especially with an acceleration of international passenger traffic. Of course, we're closely monitoring how tariffs and the current macro environment could potentially impact air traffic and our customers. Our robust and diversified backlog would support the company's resilience in case these conditions were to last and or to deteriorate. During this quarter, we booked 280 gross orders. And looking at the narrowbodies, we booked 233 gross orders. On widebodies, we recorded 47 gross orders, underpinning the continued momentum for our widebody family and bringing the backlog to a record level. Net orders amounted to 204 aircrafts after 76 cancellations. which were largely anticipated and embedded in our backlog valuation as of year-end 2024. Our backlog in units increased to 8,726 aircraft at the end of March 2025. Moving on to helicopters, in Q1 we booked 100 net orders compared to 63 in Q1 last year, and these 100 were well spread across the portfolio. We are once again very pleased with the trust placed by our customers in our products and services, as seen at Verticon 2025, which is the former HeliExpo in the U.S. During this year's event, we announced 63 firm orders and 55 commitments from customers worldwide from a variety of our platforms. And during the show, we also introduced the H-140, our newest multi-mission helicopter, which received its first orders and commitments at the show. This H140 sets a new standard in the light twin engine category for performance, cost effectiveness, and passenger and crew comfort. It features a larger cabin space than the previous version with an optimized layout and a wide range of innovations. The entry into service is planned for 2028 for the emergency medical services segment for the entry into service. Other variants coming later. We continue to see positive momentum in both the civil and military markets for helicopters, and we remain focused on securing new business opportunities in both our home countries and on export markets. Before moving to Defence in Space, I'd like to mention that the H-160 received certification from the Civil Aviation Administration of China, the CAAC, earlier this month, allowing deliveries to begin in China. Finally, in Defence in Space, We started the year with a strong order intake of 2.6 billion euros for the Q1. We continue to see a good momentum across the different businesses of the division, notably on air power in both platforms and services. During the quarter, we also announced a contract with the so-called Delegation Générale de l'Armement, the DGA, the French DGA, for a new definition study of the French Navy's future maritime patrol aircraft, the MPA. This program is based on the A321XLR. This contract aims at preparing for the development and production launch of the program at the end of 2026. On connected intelligence, we've been awarded the Stage 3 contract for the IP network of the naval force, also by the Direction Generale de l'Armement. to upgrade and maintain the network and communication systems of the French Navy. We also signed a contract with Rheinmetall and Blackneck GmbH to support the German Bundeswehr's digitalization of land-based operations. And with regard to space, we've been awarded the Oberon contract to design and build two synthetic aperture radar satellites for the UK Ministry of Defence, providing high-resolution, all-weather, day and night intelligence, surveillance and reconnaissance, so-called ISR capabilities, to the British and allied defence forces. Last but not least, we are pleased with the success of Ariane 6's first commercial mission, which placed in orbit the Airbus-built CSO3. It's an Earth observation satellite for the French Armed Forces. The priority is now to secure the Ariane 6 ramp-up. And with this, now I will hand over to Thomas that will take you through our financials.