Airbus Se Unsp/Adr

Ladies and gentlemen, thank you for standing by. Welcome to the Airbus full-year 2025 earnings 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 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 Jean-Christophe Inou, Head of Investor Relations. Please go ahead.

Thank you, Sharon, and a very warm welcome to everyone joining us today. We are here to dive into the Airbus Fulier 2025 results, and I'm thrilled to be with our CEO, Guillaume Faury, and our CFO, Thomas Taffer, with us to break down the numbers and take your questions. This call is planned to last one hour and 15 minutes, including Q&A. If you're joining us via the webcast, a replay will be available for you on our website. Speaking about the website, You can already find the supporting information package there that includes today's slide and the detailed financial statements. Before we start, let me remind you that we will be making some forward-looking statements today. I encourage you to take a look at the safe harbor statement in our presentation slides. It's important stuff. Please have a quick read. And with that, let's get things started. Guillaume, the floor is yours.

Thank you, JC, and good morning, ladies and gentlemen. I'm happy to be here in Toulouse with Thomas to run you through our full year 2025 results. 2025 was a landmark year characterized by a very strong demand for our products and services in both civil and defense. While we successfully navigated in a complex and dynamic global environment, Our primary focus was managing supply constraints that created a desynchronization between production and delivery throughout the year. Against this backdrop, the year was marked by both resilience and record financials. In defense, we're observing great momentum and our large portfolio is perfectly aligned with the capability needs. We do this by delivering mission-critical solutions and being the long-term partner of choice for nations in Europe and worldwide. On the strategic front, we're advancing industrial consolidation with Leonardo and Thales to create a world-class space leader. This initiative is key to achieving the global scale and operational depth required in today's fast-evolving global market. In commercial aircraft, sustained global demand continues to drive the expansion of our industrial footprint. A major milestone in this journey was the acquisition of certain Spirit Aerosystems work packages with a closing on the 8th of December, which allowed us to take control of this production flow. And Thomas will speak more about it later. The A320 panel quality issue that hit us in December was also a significant event that put pressure on our ability to deliver in an already back-end loaded year. We took immediate steps to address the challenge, putting a strong focus on quality, and therefore unfortunately impacting 2025 deliveries. We expect the residual operational impact to be contained and spread mainly over the first half of the year. That said, our operations do not function in isolation. While we have secured a critical portion of our trajectory, some supply chain tensions continue, notably with the engine maker Pratt & Whitney. On the F320 family, Pratt & Whitney's failure to commit to the number of engines ordered by Airbus is negatively impacting this year's delivery guidance and the ramp-up trajectory into next year. As a consequence, we now expect to reach a rate of between 70 and 75 aircraft a month by the end of 2027, stabilizing at rate 75 thereafter. In this context, I'm very proud of what Team Airbus achieved. We delivered on our commitments, meeting our updated guidance with 793 deliveries. Our performance in the fourth quarter was particularly strong with 286 aircraft delivered, and we closed the year with a record year-end backlog. This result demonstrates our collective resilience and our unwavering focus on excellence in everything and everyone. Now, looking at our 2025 financial performance, our EBIT adjusted stood at 7.1 billion euros, reflecting our commercial aircraft deliveries and the performance at the helicopter and defense and space divisions. This is also reflected in our free cash flow before customer financing, which stood at 4.6 billion euros. These results led to a record net income of 5.2 billion euros, that supports our 2025 dividend proposal of €3.2 per share. With all that in mind, let's take a closer look at 2025 and moving to our commercial environment, starting with commercial aircraft. In 2025, passenger traffic expanded across all regions while air cargo demand remained resilient. This year was another commercially successful year with repeat orders and key new customers in both the single aisle and wide-body campaigns. We booked 1,000 gross orders, including 390 in Q4. On the A220, we booked 49 gross orders, and we see positive momentum. Looking at the A320 family, we booked 656 gross orders. This brings our backlog to 7,163 aircraft out of which around 75% are for the A321. Moving to the white bodies, on the A330, we booked 102 gross orders, another stronger confirming the high demand for this very versatile aircraft. And finally, on the A350, we booked 193 gross orders underpinning the good commercial momentum, and it was a record year for our freighter. Net orders amounted to 889 aircraft, including the 111 cancellations compared to the 1,000, which were largely anticipated and already embedded in our backlog valuation as of December 2024. Our backlog in units increased to a year-end record of 8,754 aircraft. At group level, Our backlog stood at 619 billion euros in 2025, including a strong book-to-bill above one for all businesses, as well as the weakening of the US dollar. Looking at helicopters, in 2025, we booked 536 net orders, compared to 450 a year earlier, with a book-to-bill well above one, both in units and value. including a strong contribution from the military segment, as well as good order intakes from services. We celebrated orders of 100 Airbus helicopters by the Spanish Ministry of Defense, the largest helicopter purchase by this customer. Additionally, we want to mention the Super Puma family, for which we signed a contract with the Royal Moroccan Air Force for 10 H225Ms in the second half of the year. we also saw Germany reinforcing their commitment by exercising the contractual option for 20 additional H145M helicopters. Finally, looking at unmanned air systems, Airbus has been awarded a contract from the French DGA for the production of six VSR700 systems, while also receiving a framework contract by the European Maritime Safety Agency for the Flexrotor, our modern vertical takeoff and landing aircraft overall we continue to see very strong momentum in particular on the military markets and we remain focused on our responsibility to deliver on expectations including ramping up finally moving to airbus defense and space 2025 reflected one more year of record order intake which stood at 17.7 billion euros corresponding to a book to build of around 1.3. Key orders recorded in Q4 reflect several strategic wins, particularly in our air power and space systems business units. Starting with air power, we observed a good commercial momentum with Spain, including contracts for 18 C-295s, plus the development and implementation of the new integrated training system for the Spanish combat pilots. Let me also mention that 2025 was an excellent year for the Eurofighter program. Notably, we recorded an order for 20 aircraft from Germany, the activation of eight options from Italy, and we also welcomed Turkey to the program with 20 aircraft. To meet this growing demand, the program has already announced the first production capacity expansion, transitioning from rate 14 to rate 20 per year. Moving to space systems, Airbus was selected by UTELSAT to build a further 340 one-web low Earth orbit satellites, LEO satellites, complementing the first 100 recorded in 2024. The 440 satellites will be produced at the Airbus Defence and Space Toulouse facility and will enhance the one-web first-generation fleet. In addition, we are proud to highlight a return to the market of one-sat satellites with an additional order from Oman's national satellite operator, providing its position in the telecommunications market, proving its position. Finally, within our connected intelligence business line, we continue to observe good order momentum throughout the year, in particular in defense, digital, and cyber. The success of the division is the result of our transformation efforts, which ensured an improved performance As we move into 2026, we remain focused on the division's long-term competitiveness and profitability. Now, let me say some words on FCAS, Future Combat Air System. The need for an ambitious European FCAS is unchanged. We believe an ambition of this scale can only be delivered through cooperation, fostering operational interoperability, and lifecycle synergies for European air forces. We believe that the deadlock of a single pillar should not jeopardize the entire future of this high-tech European capability, which will bolster our collective defense. If mandated by our customers, we would support a two-fighter solution and are committed to playing a leading role in such a reorganized FCAS delivered through European cooperation. Overall, I want to emphasize the commercial performance of both Airbus helicopters and Airbus Defence and Space that delivered record order intake in value in line with our ambition presented in June. Specifically, Defence orders excluding the joint ventures, MBDA, Arian Group, the order excluding those joint ventures reached more than €20 billion, meaning around plus 50% upside year-on-year, ensuring robust future growth. And now Thomas will take you through our financials. Thomas?