Airbus SE

Analysis

Business Description

Airbus SE (Airbus) designs, develops, manufactures and markets commercial jet aircraft, military transport aircraft, special mission aircraft, civil and military helicopters, orbital infrastructure and commercial launchers, missile systems, satellites, military combat aircraft and training aircraft.

The company classifies its business operations into three reportable segments: Airbus, Airbus Defense and Space, and Airbus Helicopters.

Airbus has business operations in 180 locations worldwide and distributes products through more than 12,000 direct suppliers.

R&D Overview

The company’s R&D focuses on development of new products and services and improvement of existing products. It established Airbus Ventures, a company that provides funds for start-ups in the aerospace and industry. Airbus has product innovation centers in the US, China, Germany, France and India; and engineering and production facilities in France, Spain, Germany, and the UK. In FY2020, the company incurred expenses of EUR2,858 million on R&D, which as a percentage of revenue stood at 5.7%.

Business Segments
Overview

Develops, manufactures and supplies commercial aircraft including corporate jets, passenger aircraft, and freighter aircraft. The passenger aircraft families include A320 family, A330 family, A340 family, Airbus A380 family, and Airbus A350 XWB family. Corporate jets include Airbus ACJ318, ACJ319, ACJ320, ACJ321, ACJ330, ACJ340, ACJ350 XWB and ACJ380.

Key Stats

As of December 2020:

-Order Backlog of EUR324,675 million -Delivered 566 commercial aircraft

Performance

Reported revenue of EUR34,250 million for FY2020, which decreased 37.5% YoY, and recorded negative growth of 15.5% during 2018-20. The segment accounted for 67.2% of the company's revenue in FY2020. It reported operating loss of EUR1330 million in FY2020, and operating profit of EUR1,794 million in FY2019.

Inventore veritatis
Overview

Operates through four divisions: Military Aircraft; Space Systems; Communications, Intelligence and Security (CIS); and Unmanned Aerial Systems (UAS). Offers military aircraft under Eurofighter Typhoon, the A400M, the A330 Multi Role Tanker Transport (MRTT) and the C295 categories. Space Systems offers a broad range of services to civil and military space organizations, besides offering orbital and space exploration systems. Also provides UAS and UAV solutions for airborne intelligence, surveillance, reconnaissance, and combat missions.

Key Stats

As of December 2020:

-Order Backlog of EUR33,505 million

Performance

Reported revenue of EUR10,446 million for FY2020, which decreased 4.2% YoY, and recorded negative growth of 2.8% during 2018-20. The segment accounted for 20.5% of the company's revenue in FY2020. It reported operating income of EUR408 million in FY2020.

Overview

Develops and markets a wide range of civil and military helicopters comprising light single engine, light twin-engine, medium, medium-heavy and attack rotorcraft. Provides single engine helicopters, including H125 Ecureuil, and H130; in light twin engine category supplies, H135 and H145 helicopters; medium rotorcraft category includes AS365 Dauphin, H155, and H175; medium heavy category include H215 Super Puma, H225, and NH90 (TTH / NFH).

Key Stats

As of December 2020: -Order Backlog of EUR15,782 million

Performance

Reported revenue of EUR6,251 million for FY2020, which grew 4.1% YoY, and recorded a CAGR of 2.6% during 2018-20. The segment accounted for 12.3% of the company's revenue in FY2020. It reported operating income of EUR455 million in FY2020, which grew 9.9% YoY.

Geographical Segments
Target Markets

India, China, Vietnam, Thailand, South Korea, Singapore, Australia, Philippines, Brunei, Malaysia and Japan

Performance

Reported revenue of EUR22,625 million in FY2019, which decreased 2.9% YoY and recorded a CAGR of 4.8% during 2015-19. The segment accounted for 32.2% of the company’s revenue in FY2019.

Inventore veritatis
Target Markets

Germany, Spain, The Netherlands, the UK, France, Russia, Turkey, Finland, Poland and Romania

Performance

Reported revenue of EUR22,591 million in FY2019, which grew 27.1% YoY and recorded a CAGR of 3% during 2015-19. The segment accounted for 32% of the company’s revenue in FY2019.

Target Markets

Brazil and Chile

Performance

Reported revenue of EUR1,851 million in FY2019, which grew 28.8% YoY and recorded negative growth of 4.9% during 2015-19. The segment accounted for 2.6% of the company’s revenue in FY2019.

Target Markets

The US, Canada and Mexico

Performance

Reported revenue of EUR12,036 million in FY2019, which grew 8% YoY and recorded a CAGR of 4.2% during 2015-19. The segment accounted for 17.1% of the company’s revenue in FY2019.

Performance

Reported revenue of EUR22,625 million in FY2019, which grew 17.8% YoY and recorded a CAGR of 12.4% during 2015-19. The segment accounted for 6.1% of the company’s revenue in FY2019.

Target Markets

Israel, The UAE

Performance

Reported revenue of EUR7,053 million in FY2019, which grew 10.6% YoY and recorded negative growth of 4.9% during 2015-19. The segment accounted for 10% of the company’s revenue in FY2019.