Airbus Se Unsp/Adr

Ladies and gentlemen, thank you for standing by. Welcome to the Airbus Half Year 2026 earnings release conference call. I am Laura, the operator for this conference. Please note that for the duration of the presentation, all participants will be in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. At this time, I would like to turn the conference over to Jean-Christophe Henoux, Head of Investor Relations. Please go ahead.

Thank you, Laura, and a very warm welcome to everyone joining us today to dive into our half-year 2026 results. I am in sunny Amsterdam with our CEO, Guillaume Faury, and our CFO, Thomas Toepfer, and they are here to break down the numbers and take your questions. This call is planned to last one hour, including Q&A, and the replay plus transcripts will be available on our website. Also on the Airbus website, you can already find today's presentation and the detailed financial statements. Before we start, let me remind you that we will be making some forward-looking statements. I encourage you to take a look at our safe airport statements in our presentation slides, so please Have a quick read. And with that, let's get things started. Guillaume, the floor is yours.

Thank you, and good evening, ladies and gentlemen. As said by Jesse, we're here in Amsterdam with Thomas to run you through our H1 2026 results. Let me start by saying that we were very happy to see many of you at the occasion of the Formula 1 Airshow and at our 2026 business update last week. Today, we return to our quarterly disclosure cycle with a presentation of the H1 results. Before that, I want to spend a moment to share my thoughts with all those affected by the devastating wildfires in Europe and also in Canada. From our side, we're focused on doing our share, keeping our helicopters, aircraft, and firefighting solutions working to ensure they can best assist where they are most needed. While the global landscape remains complex and fast-changing, we maintain a strong upward trajectory across our civil and defense businesses. To meet the rising demands, our immediate focus is on steady execution and ramp-up. Our commercial aircraft deliveries that we achieved in Q2 are at a record number of 237 aircraft, This brings our H1 deliveries to 351 aircraft as compared to 306 last year. I'm pleased with the progress made by Team Airbus and by the entire ecosystem. We are actually where we want it to be and that confirms our trajectory. This is directly reflected in our financial results with EBIT adjusted standing at 2.7 billion euros and the free cash flow before customer financing at minus 0.1 billion euros following a strong inflow in the second quarter. Our 2026 guidance remains unchanged. So let's now look at our commercial environments, starting with the commercial aircraft business. So recently, the passenger traffic declined slightly due to the Middle East conflict and higher oil prices. Also, the rate of contraction appears to be easing. We have not seen any other cancellations nor deferral requests, and the demand for our aircraft remains strong. Looking at our long-term trajectory, the commercial momentum we observe at Farnborough underscores the robust demand across the entire product portfolio, product and services portfolio. During H1, we booked 886 gross orders. On the A220, we booked 178 gross orders as we welcome the landmark order from Air Asia for 150 A220s. That's a very strong endorsement of the A220 by Air Asia. Looking at the A320 family, we booked 605 gross orders. This brings our backlog for the A320 family. to 7,467 aircraft, of which approximately 75% are for the A321. Moving to the white bodies, on the A330, we booked 37 gross orders, including the latest order from Scandinavian Airlines, SAS, for 18 A330s. And finally, on the A350, we booked 66 gross orders. As the family continues to evolve, the Dash 1000 ULR, the The world's longest range aircraft recently completed its first flight. And you saw yesterday the record breaking at the flight of over 24 hours, actually to be precise, 24 hours and 24 minutes. Meanwhile, the A350 freighter remains right on track for its first flight by the end of this year. Net orders amounted to 821 aircraft, including 65 cancellations. which were largely embedded in our backlog valuation at the full year. Our backlog in units stood at 9,222 aircraft at the end of June of this year. Moving to helicopters, in H1 we booked 250 net orders compared to 171 in the first half of 2025. During the ILA Berlin Airshow, Airbus helicopters filed a contract with the Ministry of Internal Affairs of Romania under the European initiative SAFE, Security Action for Europe. This acquisition for 12 multi-role helicopters includes seven H160s and five H145s. Earlier this year, two subsidiaries of the Vietnam Helicopter Corporation placed an order for three Airbus H225 helicopters and it's important because it supports the ongoing expansion of their oil and gas offshore operations with this helicopter. Overall, we continue to see good momentum on all our platforms in both the civil and military markets and we remain fully, fully focused on delivering on expectations. Finally, on defense and space, here we continue to see a very strong commercial momentum across all business lines. with order intake reaching 9.3 billion euros in the first half. On air power, the commercial performance is driven by several important contracts across the portfolio. Notably, we observe good traction related to the C295 with six orders year to date, including four from Thailand. On A400M, Seven NATO nations have launched a strategic initiative to establish a multinational A400M fleet. And meanwhile, Airbus is working closely with the French air force and the French security civil, deploying the A400M firefighting kit to support during the ugly wildfires that we see currently in the southwest of France. Moving to space systems. Airbus was selected to develop and produce two advanced next-generation radar instruments for the Copernicus Sentinel-1 NG constellation, as well as the Aerolux-2 wind-sensing satellite. Importantly, we continue to foster partnerships and collaboration notably with European startups to benefit from their increased speed and agility in the defense sector. We are also advancing AI applications across the sectoral and beyond, not only through the recent partnership with Mistral AI. That's it for me. Now, Thomas will take you through our financials.