Airbus Defence and Space Order Intake Gain in 2020 a Bright Spot in Tough Year
Airbus released its Full Year (FY) 2020 results on Feb. 18 after a challenging year for the company, reporting 4.3 billion euros ($5.2 billion) in revenue — a 29% revenue decline compared to 2019. EBIT Adjusted for the FY was 1.7 billion euros ($2 billion), down 75% from 2019.
Airbus Defence and Space Segment also saw a revenue decrease for the year, but not as severe as the company overall. Defence and Space reported 10.5 billion euros ($12.7 billion) of revenue for 2020, down 4% from 2019. The company said this mainly reflects lower volume as well as the impact of COVID-19 on business phasing, mainly in Space Systems.
Defence and Space, however, saw a substantial increase in net order intake in 2020, reaching 11.9 billion euro ($14.4 billion), a 39% increase from 2019. This was the only segment to see net order intake increase in 2020, and Airbus attributed the increase to major contract wins in Military Aircraft, including a contract signed in November to deliver 38 new Eurofighters for the German Air Force.
Airbus CEO Guillaume Faury commented in the release: “The 2020 results demonstrate the resilience of Airbus in the most challenging crisis to hit the aerospace industry. I want … acknowledge the strong support of our Helicopters and Defence and Space businesses. “Many uncertainties remain for our industry in 2021 as the pandemic continues to impact lives, economies and societies.”
Airbus also issued three targets to achieve in 2021: Same number of commercial aircraft deliveries as in 2020 (566); EBIT Adjusted of 2 billion euros; and breakeven free cash flow before M&A and customer financing.