Airbus Se Unsp/Adr

Ladies and gentlemen, thank you for standing by. Welcome to the Airbus nine-month 2025 earnings release conference call. I am Sharon, the operator for this conference. Please note that for the duration of the presentation, all participants will be in a 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 Faury, Thomas Töpfer, and Hélène Lagorge. Please go ahead.

Thank you, Sharon, and good evening, ladies and gentlemen. This is the Airbus 9 Month 2025 Earnings Release Conference Call. Guillaume Faure, our CEO, and Thomas Topfer, 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 for our nine-month 2025 results call. We're here in Amsterdam with Thomas to run you through our results. Our operating environment remains complex and dynamic. Navigating strong demands combined with the specific supply chain tensions that have not changed still requires continuous operational discipline and agility, in particular in the environment of changing trade policies. We welcome the US-EU trade agreement which restores a stable and tariff-free environment for trade in aircraft and parts since the start of September. This is a crucial step that allows our global industry to move forward with the predictability it needs to invest and innovate. Yet, the still unstable geopolitical situation remains an area of continuous vigilance. In that context, we are rolling out our plan to reach the A320 family production target of rate 75 per month by establishing 10 A321 capable final assembly lines across four global sites. The recent addition of a second line in the United States and a second line in China marks a critical milestone in our global industrial growth strategy, but also enhances our overall business resilience. we are scaling up our operations and expanding capacity as we move forward with the commercial aircraft ramp-up. We're also committed to contributing to European defense and remain focused on delivering more competitive and innovative products and services with our two divisions, and we see a growing momentum. When it comes to European strategic autonomy, we have made significant progress toward the consolidation of our space activities together with Leonardo and Thales, aiming at establishing a leading European company. And I will come to this in a minute. In Q3, we delivered 201 commercial aircraft, and as the engine situation is showing signs of recovery, the number of gliders is now at 32 as of the end of September. This brings our year-to-date deliveries to 507 aircraft as compared to 497 last year. Deliveries continue to be back-end loaded as we navigate the engine situation. We have a strong year-end rally ahead of us, and our teams are in the sprint. Our EBIT adjusted to that 4.1 billion euros as of nine months 2025. This reflects the commercial aircraft deliveries and the solid performance at both Airbus Defence and Space and Airbus helicopters. Our free cash flow before customer financing was minus €0.9 billion. It notably reflects the inventory build-up that supports the Q4 deliveries and the ramp-up. On that basis, we maintain our 2025 guidance, which now includes the impact of currently applicable tariffs. And we'll come back to this later. Moving to space, we've made a major strategic step forward. We are very pleased with the recent announcement of signing a Memorandum of Understanding, an MOU, with Leonardo and Thales to form a new European space player in 2027. If you recall last year, I was clear we needed to focus on fixing our foundations and restore profitability. The turnaround plan is in full motion, and we are pleased with the first results. In parallel, we've been working on strategic options to create scale and increase competitiveness facing global players. The new company aims to unite and enhance capabilities in space by combining the three respective activities in satellite and space systems manufacturing and space services. The MOU is a collective industry commitment to strengthen the European space sector. The next steps include launching the social consultation process with our social partners, preparing to carve out the space businesses, and addressing regulatory needs. We have a busy journey ahead, and we are fully committed to this major and exciting project. Let's now look at our commercial environments, starting with commercial aircraft. Passenger traffic continued its growth momentum, while air cargo demand remained resilient. During the nine month 25, we booked 610 gross orders, including 116 in Q3. On the A220, we booked 40 gross orders, and looking at the A320 family, we booked 371 gross orders. This brings our backlog to 7,000 out of which around 75% are for the A321. And the 7,105 is just for the A320 family, of course. Moving to the white bodies, on the A330, we booked 90 gross orders confirming the high demand for this versatile product. Finally, on the A350, we booked 109 gross orders underpinning the continued commercial momentum of what has become the reference in the market. Net orders amounted to 514 aircraft, including 96 cancellations, which were largely anticipated and already embedded in our backlog valuation as of December 2024. Our backlog, total backlog in units, stood at 8,665 aircraft at the end of September. Looking at helicopters, In the nine months 25, we booked 306 net orders compared to 308 in the nine months 24, so very similar, and this is well spread across the portfolio. We continue to see positive momentum, in particular on the military markets, and we remain focused on securing new business opportunities in both our home countries and export markets. A new Airbus final assembly line will be established in India, to build H125 helicopters in collaboration with Tata Advanced Systems, aiming at capturing the full potential of the civil, parapublic, and military markets in South Asia. Let me conclude by highlighting that we have streamlined our small and medium tactical uncrewed aerial systems, U.S., the drones, offering into a single comprehensive portfolio managed by the Airbus Helicopters Division. This aims at delivering a focused market approach for defense and security customers and provides customers with cutting-edge capabilities for surveillance, intelligence, and operational flexibility. Finally, in defense and space, order intake stands at 6.8 billion euros for the nine months. On air power, this notably reflects an order from the Royal Thai Air Force for a next generation Airbus A330 MRTT+. This advanced aircraft is an evolution of the combat proven A330 MRTT, introducing innovations from the A330 NEO as well as upgraded military capabilities. So in particular, the new engine of the NEO that is now on the MRTT+. While on air power, let me highlight the recent contract with Germany for the acquisition of 20 Eurofighter aircraft to be produced at our final assembly line in Manching and to be delivered to the German Air Force starting from 2031. The order intake will be recorded once all contractual conditions are met, so the order intake is not yet recorded in the Q3. The momentum for the Eurofighter is also strong export market outside of the home countries of the Eurofighter, and that was also demonstrated by this week's commitment from Turkey, Turkey, to acquire 20 units. The Eurodrone program is making progress as we successfully completed the CDR, the so-called critical design review, earlier this month. This officially concludes the design phase and paves the way to prototype production and ground tests ahead of first flight. On FCAS, we remain convinced that Europe needs to have its future combatant system in order to meet its security challenges and further develop its critical skills and know-how in this field. Even the level of effort and investment required, we are convinced, I am convinced of the benefit of a collaborative approach and we intend to play a leading role in making it happen in a way or the other. On what concerns the defense part of our Airbus defense and space and helicopters businesses, we are observing a growing momentum, and we expect it will continue in the foreseeable future. And now, Thomas will take you through our financial.