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Europe’s Airbus has announced a special dividend following its release of improved 2023 results, driven by record airplane orders and increased deliveries but tempered by a fresh charge in its troubled Space unit.
Airbus reported a 4% rise in core adjusted operating profit to 5.8 billion euros and an 11% increase in revenue to 65.4 billion euros for 2023. The company forecasts a core profit of 6.5 to 7.0 billion euros in 2024.
Dividend and Cash Reserves:
In response to its strong financial position, Airbus proposed an unchanged regular dividend of 1.8 euros per share and introduced a special 1 euro per share. This move comes as the company’s net cash exceeds the 10-billion-euro threshold, signaling a potential cash return to shareholders.
Airbus anticipates approximately 800 jet deliveries for 2024 but announced a delay in the entry to service of its A321XLR single-aisle jet to the third quarter, with the first customer airplane entering final assembly in December.
Challenges in the Space Unit:
The company faces challenges in its Space unit, with a charge of 200 million euros, bringing the total written-off in the segment to 600 million euros for the year.
CEO Guillaume Faury expressed dissatisfaction with unexpected charges in the business, leading to the departure of Space Systems chief Jean-Marc Nasr next month.
Strategic Outlook:
Despite challenges, Airbus remains committed to its Defence and Space business, with Faury emphasizing the importance of a high-performing presence in those areas amid competition from U.S. launchers and low-cost satellites.
