Harbor Assurance Declaration
Airbus, a leading aerospace and defense company, faces a myriad of risks that could impact its performance. These risks are outlined in the Unaudited Condensed Interim IFRS Consolidated Financial Statements for the quarter ended 30 June 2025 and related reports.
One of the significant risks for Airbus is the volatility in the geopolitical and macroeconomic landscape. Geopolitical tensions and supply chain challenges continue to complicate operations, with the US tariffs announced in April 2025 creating uncertainty around implementation, scope, and duration. Although no material impact was recognized in the financial statements as of June 30, 2025, ongoing monitoring is in place to assess direct and indirect effects on air traffic, customers, and suppliers.
Supply chain disruptions and bottlenecks are another major concern for Airbus. Engine shortages and delays from suppliers have impacted production rates, with only 306 commercial aircraft delivered in Q2 2025 against a target of 820, resulting in significant negative free cash flow of €1.6 billion.
Currency and financial adjustments also pose a challenge for Airbus. Significant negative impacts from dollar working capital mismatches and balance sheet revaluations (€-391 million) reflect the sensitivity to currency fluctuations and working capital timing, which may impact reported earnings.
Restructuring and integration costs, particularly in the Defence and Space segment, have incurred significant expenses. Workforce adaptation plan costs amounted to €-105 million in Q1 2025, and ongoing workforce and restructuring expenses may affect profitability.
Compliance, merger & acquisition (M&A), and integration costs are also a factor. Strategic investments, such as the acquisition of Infodas in cybersecurity, while supporting growth, also represent integration and execution risks.
Market and demand uncertainty due to external macroeconomic factors influencing air traffic and customer demand under a complex global tariff and geopolitical environment is another risk for Airbus. Although Airbus relies on a strong and diversified backlog to mitigate these risks, it remains exposed to demand fluctuations.
The lingering effects of the COVID-19 pandemic can also affect Airbus' operations. Any forward-looking statement in this presentation speaks as of the date of this presentation.
Airbus' businesses are subject to changes in general economic, political, or market conditions. The outcome of political and legal processes, including government financing for certain programmes and the size of defense and space procurement budgets, can impact Airbus. Changes in societal expectations and regulatory requirements about climate change can also affect the company.
Legal and investigatory proceedings, along with other economic, political, and technological risks and uncertainties, can affect Airbus. Disruptions to Airbus' industrial operations and supply chain can be caused by economic, geopolitical factors, physical or cyber security threats.
Airbus' performance is dependent on the successful execution of internal performance plans, including cost reduction and productivity efforts. Product performance risks, programme development and management risks exist for Airbus.
For factors that could cause future results to differ from forward-looking statements, refer to Airbus' most recent annual reports, including the Report of the Board of Directors published on 20 February 2025, particularly the Risk Factors section.
- The risk of changes in societal expectations and regulatory requirements, particularly regarding climate change, could impact Airbus, as outlined in the Unaudited Condensed Interim IFRS Consolidated Financial Statements for Q2 2025.
- In the context of environmental science, Airbus' performance may be affected by factors such as compliance with new regulations on climate change and society's growing concerns about the environment.
- To address the challenges posed by climate change, the aerospace industry, including Airbus, might need to invest in environmental science and finance innovative solutions, thereby impacting their financial statements.
