Europe’s Airbus reported a significant drop in second-quarter profits due to higher costs for ramping up jetliner production and charges in its Space Systems business. Despite higher revenue, these factors led to adjusted operating profit falling by more than half to 814 million euros ($879.7 million) for the quarter, while revenue increased slightly to 15.995 billion euros.
The company took a 989 million euro charge on forward losses in its space business, exceeding its earlier estimate of 900 million euros. However, profits still exceeded analysts’ expectations, who had forecasted an average second-quarter adjusted operating income of 699 million euros on revenue of 15.822 billion euros.
In total, Airbus has written off nearly 1.6 billion euros over a little more than five months to address potential losses in its Space Systems business. CEO Guillaume Faury emphasized his commitment to resolving these issues.
Industry sources indicate that much of the risk is tied to the OneSat satellite project and the EGNOS navigation system. Airbus is reviewing its space activities and discussing potential partnerships with France’s Thales and Italy’s Leonardo. A turnaround plan for Space Systems will be detailed in September.
Additionally, Airbus has initiated an expanded cost-containment plan for its Defence and Space division and is accelerating existing cost measures. This complements a new efficiency and costs plan for the commercial division.
Airbus Industries is a major European aerospace corporation that designs, manufactures, and sells civil and military aeronautical products worldwide. Founded in 1970, Airbus has become a global leader in the aerospace sector, known for its innovative aircraft, including the popular A320 family, the long-range A350 XWB, and the double-decker A380.
Headquartered in Toulouse, France, Airbus operates a network of production and assembly facilities across Europe and beyond, with a strong emphasis on advanced technology, sustainability, and safety. The company plays a significant role in the global aerospace market, providing a wide range of commercial and military aircraft, helicopters, and space systems. With a commitment to innovation and excellence, Airbus continues to shape the future of aviation and space exploration.
