Editing Airbus SE

{{Infobox company
| name = Airbus SE
| logo = Airbus Logo 2017.svg.png
| image = Airbus_Lagardère_-_Aéroconstellation.jpg
| image_caption = Lagardère production plant in [[Toulouse]], France
| former_name = '''Parent company:'''{{plainlist|style=margin-top:0.5em|
* European Aeronautic Defence and Space Company NV (EADS) (2000–2014)
* Airbus Group NV (2014–2015)
* Airbus Group SE (2015–2017)
}}
'''Subsidiary:'''{{plainlist|style=margin-top:0.5em|
*Airbus Industrie GIE (1970–2001)
*Airbus SAS (2001–current)
}}
| type = [[Public company|Public]]
| traded_as = {{plainlist|
*{{EuronextParis|AIR|NL0000235190|XPAR}}
*{{BMAD|isin=NL0000235190|AIR}}
*{{FWB|AIR|isin=NL0000235190}}
*[[CAC 40]] component
*[[Euro Stoxx 50]] component
*[[DAX]] component
}}
| ISIN = NL0000235190
| industry = [[Aerospace manufacturer|Aerospace]], [[arms industry|defence]]
| predecessor = [[Aérospatiale]], [[CASA (aircraft manufacturer)|CASA]], [[DASA]], [[Matra]]
| founded = {{start date and age|1998|12|28|df=y}} (as European Aeronautic Defence and Space Company NV)
| area_served = Worldwide
| products = military aircraft, civilian airliners, helicopters, missiles, rockets
| key_people = {{plainlist|
*[[Guillaume Faury]] ([[Chief executive officer|CEO]])
*[[René Obermann]] ([[Chairman]])
}}
| revenue = {{Increase}}&nbsp;{{€|58.76 billion|link=yes}}
| revenue_year = 2022
| operating_income = {{steady}} {{€|5.33 billion}}
| income_year = 2022
| net_income = {{Increase}}&nbsp;{{€|4.25 billion}}
| net_income_year = 2022
| assets = {{Increase}}&nbsp;{{€|115.94 billion}}
| assets_year = 2022
| equity = {{Increase}}&nbsp;{{€|12.98 billion}}
| equity_year = 2022
| owner = {{Indented plainlist|
*[[SOGEPA]] (French Government): 10.9%
*{{ill|GZBV|de|GZBV}} (German Government): 10.9%
*[[SEPI]] (Spanish Government): 4.1%
}}
| num_employees = 126,495
| num_employees_year = 2021
| divisions = {{plainlist|
*[[Airbus Defence and Space]]
*[[Airbus Helicopters]]
}}
| subsid = {{plainlist|
*[[Airbus Group, Inc.]]
*[[Airbus Corporate Jets]]
*[[ArianeGroup]] (50%)
*[[ATR (aircraft manufacturer)|ATR]] (50%)
*[[Eurofighter GmbH|Eurofighter]] (46%)
*[[MBDA]] (37.5%)
*[[NAVBLUE]]
*[[Panavia Aircraft GmbH|Panavia Aircraft]] (42.5%)
*[[Stelia Aerospace]]
*[[Testia]]
}}
| homepage = {{URL|https://airbus.com}}
| footnotes = Financials {{as of|2022|12|31|lc=y}}.
<Youtube>k7dZ-_gRKBQ</Youtube>
}}

Airbus is committed to pioneer sustainable aerospace for a safe and united world.<ref name=":0">https://www.airbus.com/en/what-we-do</ref>

Airbus, a leading aerospace manufacturer, is globally recognized for its unwavering dedication to innovation and excellence. Spanning aircraft design, propulsion systems, and defense technologies, Airbus provides state-of-the-art solutions that cater to the ever-changing demands of the aviation and defense sectors worldwide. Emphasizing a robust commitment to research and development, the company constantly pushes the frontiers of technology, aiming to elevate the performance, efficiency, and sustainability of its offerings. Furthermore, Airbus actively fosters collaborative partnerships within the industry to accelerate progress and shape a more promising future for aviation and defense.<ref name=":0" />

With Airbus implementing strategic growth approaches and factoring in relevant assumptions, our analysis suggests a potential 42% return over the next five years, translating to an average annual growth rate of about 8.4%. This implies that a £100,000 investment in Airbus could potentially increase to approximately £142,000 within five years. These projections stem from insights gathered from Stockhub users, our comprehensive DCF model, and the present market valuation.

== Operations ==
Airbus is a global pioneer in aerospace industry, operating in the commercial aircraft, helicopters, defence and space sectors. Airbus is a leader in '''designing, manufacturing and delivering aerospace products, services and solutions''' to customers on a worldwide scale.

With '''around 134,000 employees''' and as the '''largest aeronautics and space company''' in Europe and a worldwide leader, Airbus is at the forefront of the aviation industry. 

Airbus has built on its strong European heritage to become truly international – with roughly 180 locations and around '''18,000 direct suppliers''' globally. The company has aircraft and helicopter final assembly lines across Asia, Europe and the Americas.

=== Product Divisions: ===

==== COMMERCIAL AIRCRAFTS ====
The product line includes passenger aircrafts , freighters and private jets. 

<u>Passenger Aircrafts:-</u> <ref>https://www.airbus.com/en/products-services/commercial-aircraft/passenger-aircraft</ref>

Airbus aircraft have become the preferred choice for passengers and operators around the globe. The company's aircrafts fly on every continent.  Airbus's passenger aircrafts include: 

# [[File:Screenshot 2023-08-07 at 13.30.52.png|thumb|379x379px|''Airbus A320'']]Airbus A220 - single aisle 100 to 150 seat aircrafts
# Airbus A320 - undisputed leader in the single-aisle category
# Airbus A330 - twin-engine ; can cover long-range requirements
# Airbus A350 - The A350 epitomises Airbus’ five decades of experience and expertise in shaping the future of air travel. By creating an aircraft family that meets market requirements for size, range, revenue generation, passenger comfort and the environment, Airbus has delivered a new-generation passenger aircraft that is at the pinnacle of modern aviation
# Airbus A380 - The double-deck A380 is the largest Airbus aircraft and introduced many key innovations that are now embedded in the latest generation of aircraft.

<u>Freighters:-</u>

The demand for cargo has been boosted by e-commerce, and it is expected that express freight will grow by 4.7% per year and general cargo by 2.7%. Overall, over the next 20 years there will be a need for some 2,440 freighters, of which 880 will be new-build.  

Airbus provides a range of freighters with different capacities and capabilities to service the market enabling supply chain networks to transport a full range of cargo – from high-value consumer goods, manufacturing parts to express packages and perishables as well as medical supplies.

The '''newest freighter to the large cargo market is the A350F''', bringing latest-generation innovation from the A350 with reduced fuel burn and CO2 emissions.

- The A330-200F is a new-generation cargo aircraft that meets the needs of the freight business in the mid-size and long-haul segment.

- The A330P2F and A321P2F are passenger aircraft that have been converted to a freighter providing a cost-effective and highly efficient option to customers.

- For the airlift of oversized cargo loads, Airbus operates a fleet ofA300-600ST Beluga Super Transporters that support the manufacturing flow within the company’s European production network, operated by the Airbus Transport International affiliate.



'''HELICOPTERS'''

Airbus helicopters are in service across more than 150 countries worldwide. The company’s product line offers the full spectrum of rotary-wing aircraft solutions for civil, government, military, law enforcement and parapublic uses.

<u>Civil Helicopter Portfolio:</u> 

* H125, H130 - intermediate single engine
* H135 , H145 - Light twin engine
* H155 ,H160 - Medium twin engine 
* H175 - Super medium twin engine
* H215, H225 - Heavy twin engine 



<u>'''<big>Military Helicopters</big>'''</u> 

More than 100 armed forces worldwide place their trust in Airbus products, making Airbus one of the world's largest suppliers of advanced military helicopters.

''<u>HForce</u>'' <ref>https://www.airbus.com/en/products-services/helicopters/military-helicopters/hforce</ref>

HForce is a unique and flexible weapon system designed to meet the requirements of defence agencies looking for light attack mission capabilities to complement their existing fleet of specialised attack helicopters.

It is the latest generation of Airbus' weapon system. Modular and incremental, HForce can be fitted onboard military versions of Airbus’ commercial helicopter range (H125M, H145M, H225M).

HForce offers a wide range of modern weapons, and is easy to operate – with a level of targeting accuracy that formerly was reserved for high-end attack helicopters.

<u>'''''<small>Military Support Centres</small>'''''</u><ref>https://www.airbus.com/en/products-services/helicopters/hcare-services/helicopter-maintenance-services/military-support</ref>

Airbus Helicopters operates Military Support Centers (MSC) for the French and German Armed Forces.
[[File:Screenshot 2023-08-07 at 13.33.13.png|thumb|367x367px|''Airbus Tiger - combat proven attack helicopter'']]

===== '''German MSC''' =====
Airbus Helicopters operates a Military Support Center (MSC) for Bundeswehr (German Armed Forces) helicopters. Based in Donauwörth, Germany, the center’s approximately 900 employees guarantee a constantly available global service for maintenance, support and engineering services covering almost all Bundeswehr rotorcraft:
* NH90
* UH-Tiger
* CH-53 (different versions)
* Sea King Mk41
* Sea Lynx Mk88A
* H135/H145
* Cougar

The German MSC supports around 270 helicopters for the German Armed Forces, representing 36,000 flight hours per year.

===== '''French MSC''' =====
Airbus Helicopters created a dedicated Military Support Center (MSC) in France in January 2015. This new entity offers a centralized portfolio of services for the French government, fully dedicated to support more than 500 helicopters operated by the French Armed Forces. Based in Marignane, France, Airbus Helicopters’ French MSC brings together all of the company’s resources needed to support the French military’s helicopters while offering a fully dedicated customer interface. These include:

* Technical, industrial, and logistics support
* Extensive aircraft MRO capabilities
* Support for combat deployment of the French armies
* Transversal management of fleets, such as the Tiger, NH90, and Cougar, to ensure an optimum aircraft availability
* Business support such as Quality, Human Resources, Finance, and business improvement

Around 500 employees and 10,000 square meters of workshops are dedicated to serving this customer. In addition, 30 technical representatives and logistics field representatives have been dispatched to various customer bases.

<u>'''ACH [Airbus Corporate Helicopters]'''</u> 

Airbus Corporate Helicopters is Airbus Helicopters’ '''high end and bespoke brand''' dedicated to private and business aviation customers.
[[File:Screenshot 2023-08-07 at 13.07.58.png|thumb|''ACH Line'']]
'''ACH Line:''' 

Based on Airbus Corporate Helicopters’ in-house style concept, this interior cabin line is the perfect response for those looking for a light and efficient design.

'''ACH Exclusive:''' 
[[File:Screenshot 2023-08-07 at 13.08.21.png|thumb|''ACH Exclusive'']]
This interior line responds to those looking for a truly excessive environment with the highest standards of refinement, luxury and comfort. 

'''ACH Edition:''' 

A portfolio of Airbus Corporate Helicopters special collaborations and partnerships with high-end brands and designers, ranging from Mercedes Benz Style and Aston Martin to designs by world renowned designer Harrison Eidsgaard.
[[File:Screenshot 2023-08-07 at 13.08.40.png|thumb|''ACH Edition'']]



'''DEFENCE'''

Airbus brings interoperable and collaborative solutions to ensure superiority for combat systems across the five operational domains: land, air, sea, space and cyber.
[[File:Screenshot 2023-08-07 at 13.27.12.png|thumb|359x359px|''Airbus C295'']]
Airbus know-how is underscored by its prime contractor role for Europe’s Future Combat Air System (FCAS) – a network of manned and unmanned platforms from fighter and drones to satellites; its development of the Multi-Domain Combat Cloud (MDCC) – a decentralised, cyber-resilient, collaborative information network using cloud-based technologies; and implementation of the Network for the Sky (NFTS) – a resilient global-mesh military communications solution that allows aircraft to be fully part of a high-speed connected battlespace.
[[File:Screenshot 2023-08-07 at 13.28.03.png|thumb|357x357px|''Airbus Eurofighter Typhoon'']]
The company’s world-class portfolio of products includes the Eurofighter Typhoon swing-role combat aircraft; the A400M, C295 and CN235 air lifters; the A330 Multi-Role Tanker Transport; along with robust, dependable unmanned aerial systems (UAS). For networks and systems, Airbus’ secure and resilient communications capabilities provide comprehensive bandwidth and best-in-class capabilities. 

'''SPACE''' 

Airbus has been helping to answer big questions from space and advance space exploration for more than 50 years. Supplying reliable systems that range from electronic components to full telecommunications relay platforms, scientific satellites and crewed spacecraft, developing the technology to send spaceships to planets – Airbus provides solutions for customers and their programmes around the globe.

ArianeGroup, a joint venture with Safran, is the prime contractor for Europe’s record-breaking Ariane launcher. Applying the expertise of two leading contributors to modern launch vehicles, ArianeGroup develops innovative and competitive space solutions. Airbus Defence and Space has accumulated over 30 years of in-orbit operation, launching its first Earth observation satellite in 1986.

Juice:- 

Airbus has developed and built JUICE (JUpiter ICy moons Explorer) spacecraft for the European Space Agency, which will study Jupiter and its icy moons. Signed as prime contractor in 2015, Airbus has led a consortium of more than 80 companies during the course of the project.
[[File:Screenshot 2023-08-07 at 13.19.49.png|thumb|431x431px|''JUICE Highlights'']]
In April 2023, JUICE began an approximately '''8 year cruise to Jupiter''' to spend four years in the Jovian system. Its main mission will be to explore the huge planet’s three largest icy moons in the hope of determining whether life is possible on these dwarf planets.



'''SECURITY'''

Airbus's Security portfolio includes:

* Marittime
* Critical Infrastructure
* Public Safety 
* Crisis management 

== Research and Development ==

=== CityAirbus NextGen ===
The CityAirbus NextGen represents an advanced prototype of an all-electric, four-seat vertical take-off and landing (eVTOL) aircraft. It follows a lift and cruise design, offering an 80-km operational range and a cruise speed of 120 km/h, making it an ideal choice for a wide range of flight operations within urban areas and communities.<ref>https://www.airbus.com/en/innovation/low-carbon-aviation/urban-air-mobility/cityairbus-nextgen</ref>
[[File:CityAirbus.png|thumb|500x500px|center]]

=== Solar flight ===
Venturing into the stratosphere with unmanned aerial vehicles is a pioneering feat that Airbus is currently spearheading. The company's latest endeavors in solar cell technology promise to revolutionize the capabilities of these aircraft, allowing them to soar at high altitudes for prolonged periods, solely powered by sunlight.

The primary focus of Airbus's work in solar flight encompasses several key aspects:

# Advancing Photovoltaic Solar Panels: Airbus is dedicated to developing cutting-edge photovoltaic solar panels that not only weigh less but also possess greater flexibility, while maximizing the capture of solar energy per square meter of surface area.
# Efficient Energy Conversion: The captured solar energy is ingeniously converted into electrical energy to propel an electric-driven system, enabling smooth operation of the aircraft and powering various onboard equipment.
# Uninterrupted Flight: One of the most remarkable achievements in this endeavor is harnessing solar energy to charge a rechargeable energy storage system. This breakthrough allows the aircraft to continue flying autonomously during the night, eliminating any dependence on traditional fuel sources.

At the forefront of Airbus's solar-powered flight initiatives stands the remarkable Zephyr program. Functioning as a high-altitude pseudo-satellite, the Zephyr aircraft relies solely on solar power to operate effectively, setting new standards for sustainable and limitless flight possibilities.

Airbus's relentless pursuit of solar-powered aerial technology is poised to reshape the future of unmanned aerial vehicles, unlocking vast potential for extended, environmentally friendly missions in the stratosphere. With the Zephyr program leading the way, the sky's the limit for solar-powered aviation.
[[File:Solar plane.png|thumb|500x500px|center]]

== Market ==

=== '''''Total Addressable Market''''' ===

=== '''''Serviceable Available Market''''' ===
The Serviceable Available Market (SAM), representing the global aviation market, is projected to experience growth from USD 333.96 billion in 2023 to USD 386.21 billion by 2028, at a CAGR of 2.95% during the forecast period (2023-2028).<ref>https://www.mordorintelligence.com/industry-reports/aviation-market</ref>

=== '''''Serviceable Obtainable Market''''' ===
The Serviceable Available Market (SAM) for Safran SA is focused on the commercial aviation segment within the global aviation market. The Commercial Aviation Market is anticipated to experience significant growth, projected to increase from $218.97 billion in 2023 to $271.96 billion by 2028, representing a Compound Annual Growth Rate (CAGR) of 4.43% during the forecast period from 2023 to 2028.<ref><nowiki>https://www.mordorintelligence.com/industry-reports/commercial-aircraft-market</nowiki></ref>

== Competition ==

=== Competitors ===
{| class="wikitable"
| rowspan="2" |
!Airbus[[File:Airbus logo.png|center|thumb|60x60px]]
!Boeing[[File:Boeing logo.png|center|thumb|60x60px]]
!General Dynamics[[File:GD (1).jpg|center|thumb|60x60px]]
!China Aerospace Science and Technology[[File:CASC.png|center|thumb]]
!United Aircraft Corporation[[File:UAC.png|center|thumb|60x60px]]
|-
|Airbus is a company that provides aerospace products, services, and solutions.
|Boeing is an aerospace company that develops, manufactures, and services commercial airplanes, defense products, and space systems.
|General Dynamics (GD) is an aerospace and defense company that offers a portfolio of products and services within the aviation, marine, combat systems, and related technology fields.
|China Aerospace Science and Technology Corporation (CASC, 中国航天科技集团有限公司) is a company engaged in the research, design, manufacture, and supply of space products and services.
|United Aircraft Corporation (UAC, Объединенная авиастроительная корпорация) is an aerospace and defense company.
|-
!Founding Date
|1970
|1916
|1952
|1999
|2006
|-
!Type
|Public
|Public
|Public
|Private
|Public
|-
!Locations
|Blagnac, FR
|Arlington, US
|Reston, US 
|Moscow, RU
|Xi'an, CN (HQ)
|-
!Employees
|134,267
|156,000
|106,500
|180,521
|98,000
|-
!Valuation ($)
|114.1B
|120.9B
|57.6B
|N/A
|N/A
|}

=== Competitive advantage ===
Airbus's competitive advantage lies in its broad product portfolio, technological innovation, fuel efficiency, global reach, strong customer relationships, production efficiency, established brand, collaborative approach, and government support.

== Team ==

=== Board of Directors ===
[[File:René.png|left|thumb|400x400px]]

==== Chairman of the Board of Directors ====
René Obermann is the Co-Head of Europe and Managing Director at Warburg Pincus Deutschland GmbH, a leading global private equity firm. He also holds positions as Deputy Chairman of the Supervisory Board at IONOS Group SE, a prominent European web hosting and cloud company, and as a Member of the Board of Directors at ISAT Connect Bidco Limited, a satellite network provider. Prior to joining Warburg Pincus, he served as CEO of Ziggo BV and held various executive roles at Deutsche Telekom Group from 1998 to 2013, including serving as CEO of Deutsche Telekom AG from 2006 to 2013. René's diverse and accomplished career trajectory showcases his deep expertise and broad perspective in the corporate world.<ref>https://www.airbus.com/en/our-governance/rene-obermann</ref>
[[File:Guillaume.png|left|thumb|400x400px]]

==== Chief Executive Officer ====
Guillaume Faury became Airbus Chief Executive Officer (CEO) in April 2019, leading the Company's Executive Committee. Before his CEO role, he was the President of Airbus' commercial aircraft business since February 2018. In addition to his position at Airbus, Guillaume serves on the board of directors of AXA SA, and he is the President of the Groupement des Industries Françaises de l’Aéronautique et du Spatial (GIFAS) and the Aerospace, Security and Defence Industries Association of Europe (ASD). Guillaume has a background in engineering and has held various leadership positions at Airbus Helicopters, Peugeot, and the Direction Générale de l’Armement (DGA). He is a qualified pilot and flight-test engineer with a deep passion for aviation.<ref>https://www.airbus.com/en/our-governance/guillaume-faury</ref>

== ESG and Sustainability Outlook ==
Airbus measures its progress on sustainability against strict criteria codified in globally-recognised and highly-respected frameworks and standards. Airbus was the first aircraft manufacturer to disclose Scope 3 figures for the aircraft that it delivers to customers.

Airbus has been a supporter of the Task Force on Climate-related Financial Disclosures (TCFD) since December 2020. And in addition, in 2022 , the company  committed to having its near-term greenhouse gas emissions targets assessed by the Science Based Targets initiative (SBTi), which is acknowledged as the gold standard in CO2 target setting methodology. These targets were approved by the SBTi in early 2023.

Airbus has been a signatory to the UN Global Compact since 2003. Their sustainability commitments are aligned with and support  the UN Sustainable Development Goals, a global call to action to ensure a more sustainable future for people and the planet by 2030. Airbus was among the first in its industry to formally adopt the SDGs as a framework for its social responsibility practices.
[[File:Screenshot 2023-08-07 at 17.27.37.png|thumb|478x478px|''Materiality Matrix 2022'']]
In regards to overall sustainability reporting, Airbus has chosen to report against the Global Reporting Initiative (GRI) standards, one of the most internationally used and recognised reporting standards today.

[[File:Screenshot 2023-08-07 at 17.33.34.png|thumb|450x450px|''Airbus SE's commitment to UN SDG'']]
<u>2022 Sustainability Highlights:-</u> 

* The A330 MRTT became the world’s first tanker aircraft to be certified for automatic air-to-air refuelling boom operations.
* The first test flights of A400M and C295 aircraft partly powered by sustainable aviation fuel (SAF) took place during the year. Separately, Airbus worked with the UK’s Royal Air Force and industry partners to conduct a test flight of an in-service A330 MRTT using 100% SAF in both of its engines.
* In Space Systems, a number of satellites are in development to support climate change monitoring.

== Risks ==
Airbus SE's risks can be categorised into: 

# Financial Risks
# Business-Specific risks
# Legal Risks

Key risks in each of these categories are detailed as follows: 

=== Financial Risks <ref name=":1">https://www.airbus.com/sites/g/files/jlcbta136/files/2023-05/Airbus_SE_2022_Annual_Report.pdf</ref> ===

* Market disruptions and economic downturns can quickly develop due to various factors such as credit crises, recessions, high commodity prices, energy shortage, currency exchange rates, geopolitical events, and pandemics like COVID-19.
* The company's global presence, including operations in Europe, the US, and Asia, makes it susceptible to weak market and economic conditions in these regions.
* Economic changes can impact customer demand for the company's products and services, particularly in the commercial aircraft industry, which is cyclical and influenced by GDP growth and passenger demand for air travel.
* Weak economic conditions can lead to financial distress for airlines and customers, order cancellations, reductions in defence and space spending, and increased sales financing requests, affecting the company's results.
* The company faces foreign currency exposure, mainly with revenues in US dollars and costs in euros, and exchange rate fluctuations can impact profitability.
* Credit risk is present in sales financing activities, and defaults or decreases in the value of financed aircraft can adversely affect the company's business and financial condition.
* The company manages liquidity risk by maintaining cash reserves, committed credit facilities, and diversified funding programs, while adopting a prudent approach to managing liquidity.
* Any termination or reduction of future funding or cancellations or delays impacting existing contracts may have a negative effect on the Company’s financial condition and results of operations.
* In instances where several countries undertake to enter together into defence or other procurement contracts, economic, political or budgetary constraints in any one of these countries may have a negative effect on the ability of the Company to enter into or perform such contracts.

=== Business-Specific Risks <ref name=":1" /> ===

* The commercial aircraft market is influenced by cyclical trends due to changes in passenger demand, air cargo share, and economic variables such as GDP growth, private consumption, and population size.
* Airbus SE faces stiff competition with new entrants seeking to operate in the Company's exiting markets.
* Factors affecting the market for commercial aircraft include fleet age and technical obsolescence, aircraft retirements, load factors, airline pricing, financial health, financing availability, fuel prices, regulations, environmental constraints, and market evolution.
* The COVID-19 pandemic and geopolitical events like Russia's invasion of Ukraine have amplified the impact of these factors on the commercial aircraft industry.
* Cybersecurity risks are also significant, with potential threats to data, industrial systems, products, and services.
* Physical security, terrorism, pandemics, and other catastrophic events can negatively affect public perception of air travel, reducing demand for commercial aircraft.
* Airbus depends on key suppliers and subcontractors, and their performance and financial health can impact the company's operations and financial condition.
* There can be no assurance that the Company’s products or services will be successfully developed, manufactured or operated or that they will perform as intended.
* Contract cancellations pose a serious risk for the company . In addition, the company may also incur significant costs or loss of revenues in connection with remedial action required to correct any performance issues detected in its products or services.

=== Legal Risks <ref name=":1" /> ===

* The Company is, from time to time ,subject to government inquiries and investigations of its business and competitive environment due, among other things, to the heavily regulated nature of its industry.
* The Company is required to comply with applicable anti-bribery laws and regulations in jurisdictions around the world where it does business.
* Ethical misconduct or non-compliance with applicable laws and regulations by the Company, its employees or any third party acting on its behalf could expose it to liability or have a negative impact on its business.
* The Company may be subject to administrative, civil or criminal liabilities including significant fines and penalties, as well as suspension or debarment from government or non-government contracts for some period of time.
* The export market is a significant market for the Company. In addition, many of the products the Company designs and manufactures for military use are considered to be of national strategic interest. Consequently, the export of such products outside of the jurisdictions in which they are produced may be restricted or subject to licensing and export control requirements.
* The Company’s ability to market new products and enter new markets may be dependent on obtaining government certifications and approvals in a timely manner.

== Financials ==

=== Historical Figures: ===

==== Latest Year ====
In the fiscal year 2022, Airbus experienced a notable surge in its financial performance, with reported total revenue reaching €58.76 billion. This impressive achievement showcases a remarkable growth of approximately 17% in comparison to the preceding year's revenue of €52.15 billion. However, amidst this revenue upswing, the company also recorded a net income of €4.25 billion, underlining a positive trajectory.

==== Past Four Years ====
Looking back at the preceding four years, Airbus' financial landscape displayed a degree of variability. Commencing at €70.48 billion in 2019 and culminating at €58.76 billion in 2022, the revenue trend exhibited fluctuations reflective of the dynamic aerospace sector. During this span, net income experienced significant shifts, oscillating between €4.25 billion and a loss of €1.36 billion in response to the industry's evolving challenges.

==== Financial Performance Analysis ====
Airbus has encountered a downturn in its financial performance over the recent years, and several factors may have contributed to this decline.
[[File:Airbus financial.png|center|thumb|500x500px|Airbus Financial Performance Summary (2019-2022)]]
A significant factor impacting Airbus' recent financial challenges is the Covid-19 pandemic, which resulted in widespread disruptions across the aviation industry. With travel restrictions and reduced passenger demand, the aviation sector experienced a substantial decline, affecting the demand for new aircraft and related products offered by Airbus.

Another key element affecting Airbus' financials is the escalation in operating costs, particularly those linked to crucial manufacturing components. The escalating prices of essential materials used in aircraft production exerted pressure on profit margins, making it intricate to uphold previous levels of profitability.

Furthermore, the fluctuations in exchange rates between the euro and other major currencies have also played a role in shaping the company's financial results. Operating in a globally interconnected market, Airbus conducts business transactions in various currencies, subjecting its revenues and costs to uncertainty due to currency fluctuations.

It's essential to recognize that these challenges extend beyond Airbus and have reverberated throughout the aerospace industry. The pandemic-induced disruptions have significantly impacted not only Airbus but also its peers, underscoring the intricate and interconnected nature of the aviation sector and its responsiveness to global economic shifts.

== Discounted Cash Flow: ==
Detailed below is the DCF for Airbus SE.  Bloomberg Terminal has been used for computation. 
{| class="wikitable"
|+
{| class="wikitable"
|+
| colspan="12" |Current Share Price: 130.50 EUR
|-
!''£ million''
! colspan="5" |''Historical''
! colspan="6" |''Projected''
|-
!
!2018
!2019
!2020
!2021
!2022
!2023
!2024
!2025
!2026
!2027
!2028
|-
! colspan="11" |Income Statement
!
|-
|Revenue
|63707
|70478
|49912
|52419
|58743
|64067
|71765
|81425
|90050
|92496
|92356
|-
|''% growth''
|
|11%
| -29%
|4%
|13%
|9%
|12%
|13%
|11%
|3%
|
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Cost Of Goods Sold
|52149
|54920
|59973
|44250
|42518
|48192
|53049
|58926
|66318
|75103
|76490
|-
|''% of revenue''
|86%
|85%
|89%
|82%
|82%
|83%
|82%
|81%
|82%
|81%
|83%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Gross Profit
|9,223 
|10,505 
|5,662 
|9631
|10571
|11018
|12838
|15107
|16189
|17898
|15867
|-
|''% of revenue''
|40%
|36%
|18%
|31%
|33%
|34%
|36%
|36%
|37%
|38%
|
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Total Operating Expenses
|4156
|3935
|5101
|4599
|5278
|5004
|5450
|5805
|5424
|5536
|3990
|-
|''% of revenue''
|7%
|6%
|10%
|9%
|9%
|8%
|8%
|7%
|6%
|6%
|4%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Operating Income/ EBIT
|5067
|6570
|561
|5032
|5293
|6013
|7388
|9301
|10765
|11857
|11877
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|EBITDA
|7511
|9467
|3392
|7357
|8009
|8677
|10138
|12207
|13915
|14587
|14692
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Tax Expense
|1361
|3772
|425
|887
|1108
|2719
|3574
|4336
|3803
|4619
|5095
|-
|''Effective tax rate''
|29%
|57%
|103%
|17%
|19%
|45%
|48%
|47%
|35%
|39%
|43%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
! colspan="11" |Cashflow
!
|-
|D&A
|2444
|2927
|2831
|2325
|2716
|2663
|2750
|2906
|3150
|2730
|2815
|-
|''% of revenue''
|4%
|4%
|6%
|4%
|5%
|4%
|4%
|4%
|3%
|3%
|3%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Capital Expenditure
|2285
|2340
|1759
|1928
|2464
|2579
|2732
|2955
|3139
|3265
|3291
|-
|''% of revenue''
|4%
|3%
|4%
|''4%''
|''4%''
|4%
|4%
|4%
|3%
|4%
|4%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|Change in NWC
| -465
| -3638
|9744
| -379
|491
|1760
|2471
|4205
|2065
|2679
|3056
|-
|% of revenue
| -1%
| -5%
|20%
| -1%
|1%
|''3%''
|''3%''
|5%
|2%
|''3%''
|3%
|-
|
|
|
|
|
|
|
|
|
|
|
|
|-
|'''Unlevered FCF'''
|
|
|
|
|
|1471
|1153
|681
|4493
|3736
|3004
|}
!Input Considerations and DCF summary
|}
Given below is the WACC and perpetuity growth growth considered in computing the DCF:
{| class="wikitable"
|+
|WACC
|9.5%
|-
|Perpetuity Growth Rate
|2%
|}

== Valuation ==

=== What's the Current Value of Airbus SE? ===
As of August 9th, 2023, Airbus shares have reached a value of 131.66€, showcasing a consistent trajectory of recovery following the repercussions of the Covid-19 pandemic. This current stock value is nearing its previous historical peak of 133.40€, documented in November 2019, signifying an encouraging upward trend in the market. This positive momentum underscores Airbus' resilience and potential for growth.
{| class="wikitable"
! colspan="4" |Airbus Current Valuation - August 2023
|-
|Share Price (@09/08)
|[€]
|
| '''131.66'''
|-
|Shares Outstanding 
|[#M]
|
|789.06
|-
|Equity Value
|[€B]
|
|102.99 
|-
| Add:
Net Debt at Dec. 31, 2022
| [€B]
|
|6.48
|-
|'''Enterprise Value'''
|[€B]
|
|'''96.51'''
|}
In our analysis of Airbus's valuation, we employed two distinct methods:

* '''Discounted Cashflow''': Using the EBITDA multiple approach, we arrive at Airbus SE's  implied share price  to be €145.87 , thereby resulting in an estimated implied upside of 42%.  
* '''Trading Comps''': In reference to our estimates derived from the comps analysis, where the Price-to-Earnings (P/E) ratio yielded an estimated value of '''388.57€''' and the Enterprise Value-to-EBITDA (EV/EBITDA) ratio yielded an estimated value of '''218.65€''', Airbus' current stock value of 131.66€ prompts an evaluation of its alignment with our projected valuation ranges. 
===What's the expected return of an Investment in the Company?===
According to Stockhub users' projections utilizing our DCF model and prevailing market value, an investment in Airbus is anticipated to yield an approximate '''42%''' return over the next five years. In simpler terms, a £1,000 investment in Safran is expected to increase to £1,420.00 in five years.

If an investment achieves its projected return of '''8.4%''', which aligns with a 'suitable' 8% annual return over a five-year period, it is deemed a viable choice for investing in the company.

== Monte Carlo Simulations ==

=== Data ===
Presenting our state-of-the-art Monte Carlo simulation designed for analyzing Airbus' stock price dynamics. Through the utilization of this sophisticated computational technique, our goal is to offer you valuable perspectives on how Safran's stock may evolve across time.
[[File:Stock price AIR.png|alt=Historical price of Airbus' equity|none|thumb|500x500px|Historical price of Airbus' equity]]
The Airbus-tailored Monte Carlo simulation entails conducting a multitude of random simulations using various input variables, encompassing historical price data, volatility, and other crucial market factors. Through this approach, we construct an extensive probability distribution of potential outcomes, enabling you to assess the possible risks and rewards associated with investing in Airbus.
[[File:Log return AIR.png|none|thumb|400x400px|Logarithmic distribution of past prices]]

=== Simulations ===
Through our simulation, you can make informed choices based on data and enhance your comprehension of the unpredictability surrounding Airbus' stock performance. Embrace the forefront of equity research and delve into the extensive array of potential scenarios to strategically enhance your investment strategies.[[File:MC simu AIR.png|none|thumb|500x500px|Price paths of Airbus' stock 50 days in the future for 100 simulations]]

By utilizing our Airbus-specific Monte Carlo simulations, you can visualize numerous trajectories across 100 simulations, granting insights into potential outcomes. However, for a more profound and holistic comprehension of the results, we advise conducting a more extensive number of simulations. This approach allows us to create probability distributions that emphasize the chances of Airbus' stock price reaching specific levels. Such an approach ensures a heightened precision and insightful analysis, empowering you to make well-informed decisions with assurance.
[[File:MC simu AIR price.png|none|thumb|500x500px|Final stock price distribution in 50 days for 1,000,000 simulations]]
Furthermore, we incorporates the calculation of the likelihood for the stock to achieve or exceed its current value of 131.66€. The resulting probability, standing at '''48.38%''', indicates that considering its historical returns, the stock is slightly '''overvalued'''.

The current valuation of Airbus stock appears to be relatively '''high''' when assessed against historical returns. However, our valuations indicate that the stock's value surpasses its present price when considering future cash flows. This suggests the presence of potential intrinsic value that warrants a more comprehensive evaluation.
== Appendix ==

=== Financial statements ===

==== Income Statement (In thousands of €) ====
{| class="wikitable"
!Year end date
!TTM
!12/31/2022
!12/31/2021
!12/31/2020
!12/31/2019
|-
|Total Revenue
|55,113,000
|58,763,000
|52,149,000
|49,912,000
|70,478,000
|-
|Cost of  Revenue
|44,965,000
|48,192,000
|42,518,000
|44,250,000
|59,973,000
|-
|'''Gross Profit'''
|10,148,000
|10,571,000
|9,631,000
|5,662,000
|10,505,000
|-
|'''Operating  Expense'''
|5,011,000
|5,319,000
|4,798,000
|4,998,000
|9,483,000
|-
|'''Operating Income'''
|5,137,000
|5,252,000
|4,833,000
|664,000
|1,022,000
|-
|Net Non  Operating Interest Income Expense
| -132,000
|195,000
|2,000
| -703,000
| -274,000
|-
|Pretax Income
|5,008,000
|5,075,000
|5,027,000
| -1,130,000
|1,064,000
|-
|Tax  Provision
|945,000
|939,000
|853,000
|39,000
|2,389,000
|-
|'''Net Income Common Stockholders'''
|4,146,000
|4,247,000
|4,213,000
| -1,133,000
| -1,362,000
|-
|Diluted  NI Available to Com Stockholders
|4,146,000
|4,247,000
|4,213,000
| -1,133,000
| -1,362,000
|-
|Basic EPS
| -
|5.4
|5.36
| -1.45
| -1.75
|-
|Diluted  EPS
| -
|5.39
|5.36
| -1.45
| -1.75
|-
|Basic Average Shares
| -
|787,081
|785,326
|783,178
|777,040
|-
|Diluted  Average Shares
| -
|787,753
|785,762
|783,178
|777,040
|-
|Total Expenses
|49,976,000
|53,511,000
|47,316,000
|49,248,000
|69,456,000
|-
|Net  Income from Continuing & Discontinued Operation
|4,146,000
|4,247,000
|4,213,000
| -1,133,000
| -1,362,000
|-
|Normalized Income
|4,446,182
|4,528,990
|4,520,100
| -1,216,250
| -1,413,000
|-
|Interest  Income
|132,000
|188,000
|88,000
|140,000
|228,000
|-
|Interest Expense
|330,000
|412,000
|353,000
|436,000
|385,000
|-
|Net  Interest Income
| -132,000
|195,000
|2,000
| -703,000
| -274,000
|-
|EBIT
|5,338,000
|5,487,000
|5,380,000
| -694,000
|1,449,000
|-
|EBITDA
|7,662,000
| -
| -
| -
| -
|-
|Reconciled Cost of Revenue
|44,965,000
|48,192,000
|42,518,000
|44,250,000
|59,973,000
|-
|Reconciled  Depreciation
|2,324,000
|2,716,000
|2,325,000
|2,831,000
|2,927,000
|-
|Net Income from Continuing  Operation Net Minority Interest
|4,146,000
|4,247,000
|4,213,000
| -1,133,000
| -1,362,000
|-
|Total  Unusual Items Excluding Goodwill
| -370,000
| -346,000
| -370,000
|111,000
|68,000
|-
|Total Unusual Items
| -370,000
| -346,000
| -370,000
|111,000
|68,000
|-
|Normalized  EBITDA
|8,032,000
|8,549,000
|8,075,000
|2,026,000
|4,308,000
|-
|Tax Rate for Calcs
|0
|0
|0
|0
|0
|-
|Tax  Effect of Unusual Items
| -69,818
| -64,010
| -62,900
|27,750
|17,000
|}
'''Balance Sheet (In thousands of €)'''
{| class="wikitable"
!Year end date
!12/31/2022
!12/31/2021
!12/31/2020
!12/31/2019
|-
|'''Total Assets'''
|115,944,000
|107,047,000
|110,095,000
|114,409,000
|-
|'''Total  Liabilities Net Minority Interest'''
|102,962,000
|97,561,000
|103,639,000
|108,419,000
|-
|'''Total Equity Gross Minority  Interest'''
|12,982,000
|9,486,000
|6,456,000
|5,990,000
|-
|Total  Capitalization
|22,089,000
|21,069,000
|18,989,000
|12,866,000
|-
|Common Stock Equity
|12,950,000
|9,466,000
|6,445,000
|5,975,000
|-
|Capital  Lease Obligations
|1,734,000
|1,736,000
|1,798,000
|1,560,000
|-
|Net Tangible Assets
| -3,818,000
| -6,901,000
| -9,754,000
| -10,616,000
|-
|Working  Capital
|10,407,000
|7,993,000
|8,629,000
| -5,651,000
|-
|Invested Capital
|22,199,000
|21,191,000
|20,269,000
|13,099,000
|-
|Tangible  Book Value
| -3,818,000
| -6,901,000
| -9,754,000
| -10,616,000
|-
|Total Debt
|10,983,000
|13,461,000
|15,622,000
|8,684,000
|-
|Net  Debt
| -
| -
|858,000
| -
|-
|Share Issued
|788,205
|786,084
|784,149
|783,173
|-
|Ordinary  Shares Number
|787,558
|785,629
|783,716
|782,311
|-
|Treasury Shares Number
|647.5
|454.735
|432.875
|862.61
|}
'''Cash Flow (In thousands of €)'''
{| class="wikitable"
!Year end date
!TTM
!12/31/2022
!12/31/2021
!12/31/2020
!12/31/2019
|-
|Operating Cash Flow
|4,655,000
|6,288,000
|4,639,000
| -5,420,000
|3,753,000
|-
|Investing  Cash Flow
| -3,597,000
| -3,113,000
| -2,719,000
|4,126,000
| -2,864,000
|-
|Financing Cash Flow
| -2,126,000
| -2,115,000
| -2,179,000
|6,833,000
| -958,000
|-
|End  Cash Position
|13,786,000
|15,823,000
|14,572,000
|14,439,000
|9,314,000
|-
|Capital Expenditure
| -2,036,000
| -2,464,000
| -1,928,000
| -1,759,000
| -2,340,000
|-
|Issuance  of Debt
| -
| -
|0
|7,102,000
|402,000
|-
|Repayment of Debt
| -
| -
| -2,295,000
| -445,000
| -562,000
|-
|Repurchase  of Capital Stock
| -
| -
| -
| -
| -31,000
|-
|Free Cash Flow
|2,619,000
|3,824,000
|2,711,000
| -7,179,000
|1,413,000
|}
===Trading Comparables (Comps)===
In our evaluation of Airbus and its peers, we utilize both the Price-to-Earnings ('''P/E''') ratio and the Enterprise Value-to-EBITDA ('''EV/EBITDA''') ratio as integral components of our comparative analysis.
{| class="wikitable"
!Method
!Median ratio
!Price per share
|-
!P/E
|15.42
|'''388.57'''
|-
!EV/EBITDA 
|11.35
|'''218.654'''
|}
== References ==
__INDEX__