Airbus SE’s stock took a nosedive, plummeting by nearly 12% on the Paris Stock Exchange, as the company announced a downward revision of its 2024 forecast. The aerospace titan, known for its commercial aircraft production, cited ongoing supply chain snags and a significant impairment in its space division as the primary reasons for the adjustment. The revised forecast includes a reduction in the expected delivery of commercial aircraft from 800 to 770 units and a decrease in the operating profit target to approximately 5.5 billion euros, a sharp fall from the previously anticipated 6.5 to 7 billion euros range. Additionally, the company’s free cash flow expectation was cut from 4 billion euros to 3.5 billion euros and the production ramp-up for the A320 aircraft has been delayed by one year, now set for 2027 instead of the initially planned 2026 This announcement sent shockwaves through the market, erasing over 14,000 million euros in market value, and marking the stock’s lowest point since November 2023. Analysts are now debating whether the current stock price represents a buying opportunity, considering the long-term demand for aircraft remains unchanged despite the production hurdles.
Key points
- Airbus SE’s shares fell sharply after the company lowered its 2024 delivery and profit expectations due to supply chain issues.
- The revised forecast indicates a reduction in expected aircraft deliveries from 800 to 770 and a decrease in operating profit to around 5.
- Airbus’ space division impairment and delayed production ramp-up for the A320 aircraft contribute to the revised outlook.
- Market analysts are split on whether the current Airbus stock price presents a buying opportunity given the unchanged long-term demand for aircraft.
5 billion euros.
