Q2 2026 Airbus SE Earnings Call

Speaker #1: Ladies and gentlemen, thank you for standing by. Welcome to the Airbus Half Year 2026 earnings release conference call. I am Laura, the operator for this conference.

Speaker #1: Please note that for the duration of the presentation, all participants will be in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions.

Speaker #1: At this time, I would like to turn the conference over to Jean-Christophe Hénou, Head of Investor Relations. Please go ahead.

Speaker #1: Ladies and gentlemen. Hi, welcome to the Airbus Healthier 2026 earnings release conference call. I'm Laura, the operator for this conference. Please note that for the duration of the presentation all participants will be in listen-only mode, and the conference is being recorded.

Speaker #2: Thank you, Laura, and very warm welcome to everyone joining us today. To dive into our Half Year 2026 results, I'm in sunny Amsterdam with our CEO, Guillaume Faury, and our CFO, Thomas Topper.

Speaker #1: After the presentation, there will be an opportunity to ask questions. At this time, I would like you to end the conference over to Jean-Christophe Hénou, Head of Investor, Relations.

Speaker #2: We are here to break down the numbers and take your questions. This call is planned to last 1 hour, including Q&A. The replay plus transcript will be available on our website.

Speaker #1: Please go ahead.

Speaker #2: Thank you, Laura, and very warm welcome to everyone joining us today. To dive into our Healthier 2026 results, I'm in sunny Amsterdam with our CEO, Guillaume Faury, and our CFO, Thomas Töpfer.

Speaker #2: Also, on the Airbus website, you can already find today's presentation and the detailed financial statements. Before we start, let me remind you that we will be making some forward-looking statements.

Speaker #2: We are here to break down the numbers and take your questions. This call is planned to last 1 hour, including Q&A. The replay plus transcript will be available on our website.

Speaker #2: I encourage you to take a look at our safe airborne statements in our presentation slides, so please have a quick read. And with that, let's get things started.

Speaker #2: Also, on the Airbus website, you can already find today's presentation and the detailed financial statements. Before we start, let me remind you that we will be making some forward-looking statements.

Speaker #2: Guillaume, the floor is yours.

Speaker #3: Thank you, and good evening, ladies and gentlemen. As said by Jesse, we're here in Amsterdam with Thomas to run you through our H1 2026 results.

Speaker #2: I encourage you to take a look at our safe airborne statements in our presentation slides, so please have a quick read. With that, let's get things started.

Speaker #3: Let me start by saying that we were very happy to see many of you at the occasion of the foreign air show, and at our 2026 business update, last week.

Speaker #2: Guillaume, the floor is yours.

Speaker #3: Today, we return to our quarterly disclosure cycle with a presentation of the H1 results. Before that, I want to spend a moment to share my thoughts with all those affected by the devastating wildfires in Europe and also in Canada.

Speaker #3: Thank you, and good evening, ladies and gentlemen. As said by Jesse, we're here in Amsterdam with Thomas to run you through our H1 2026 results.

Speaker #3: Let me start by saying that we were very happy to see many of you at the occasion of the Farnborough Airshow and at our 2026 Business Update last week.

Speaker #3: From our side, we're focused on doing our share, keeping our helicopters and aircraft and firefighting solutions working, to ensure they can best assist where they are most needed.

Speaker #3: Today we return to our quarterly disclosure cycle with a presentation of the H1 results. Before that, I want to spend a moment to share my thoughts with all those affected by the devastating wildfires in Europe and also in Canada.

Speaker #3: While the global landscape remains complex and fast-changing, we maintain a strong upward trajectory across our civil and defense businesses. To meet the rising demands, our immediate focus is on steady execution and ramp-up.

Speaker #3: From our side, we're focused on doing our share, keeping our helicopters and aircraft and firefighting solutions working, to ensure they can best assist where they are most needed.

Speaker #3: Our commercial aircraft deliveries that we achieved in Q2 are at a record number of 237 aircraft. This brings our H1 deliveries to 351 aircraft, as compared to 306 last year.

Speaker #3: While the global landscape remains complex and fast-changing, we maintain a strong upward trajectory across our civil and defense businesses. To meet rising demands, our immediate focus is on steady execution and ramp-up.

Speaker #3: And pleased, with the progress made by Team Airbus and by the entire ecosystem, we are actually where we wanted to be, and that confirms our trajectory.

Speaker #3: Our commercial aircraft deliveries that we achieved in Q2 are at a record number, with 237 in the first half—351 aircraft—as compared to 306 last year.

Speaker #3: This is directly reflected in our financial results, with EBITDA adjusted standing at 2.7 billion euros, and the free cash flow before customer financing at minus 0.1 billion euros, following a strong inflow in the second quarter.

Speaker #3: Our 2026 guidance remains unchanged, so let's now look at our commercial environments, starting with commercial aircraft business. Recently, the passenger traffic declined slightly due to the Middle East conflict, and higher oil prices.

Speaker #3: Also, the rate of contraction appears to be easing. We have not seen any other cancellations, nor deferral requests, and the demand for our aircraft remains strong.

Uh, this is directly reflected in our financial results with EBIT adjusted standing at €2.7 billion and the free cash flow before customer financing at minus €1 billion, following a strong inflow in the second quarter.

Of 2026 guidance remains unchanged.

Speaker #3: Looking at our long-term trajectory, the commercial momentum we observed at Farnborough underscores the robust demand across the entire. Product portfolio, product and services portfolio.

Um, so let's now look at our commercial environments.

Starting with the commercial, for business.

Speaker #3: During H1, we booked 886 gross orders, on the 8 to 20 we booked 178 gross orders, as we welcome the landmark order from AirAsia for 150 8 to 20.

So recently, the passenger profit declined slightly due to the Middle East conflict and higher oil prices. Also, the rate of contraction appears to be easing.

We have not seen any order cancellations nor deferral requests, and the demand for our aircraft remains strong.

Speaker #3: That's a very strong endorsement of the 8 to 20 by AirAsia. Looking at the 8320 family, we booked 605 gross orders, this brings our backlog for the 8320 family to 7,467 aircraft, of which approximately 75% are for the 8321.

Looking at our long-term trajectory, the commercial momentum, we observe that, from borrow underscores, the robust demands across the entire product and services portfolio.

Speaker #3: Moving to the wide bodies, on the 8330 we booked 37 gross orders, including the latest order from Scandinavian Airlines, SAS, for 18 8330. And finally, on the 8350, we booked 66 gross orders, as the family continues to evolve.

During H1, we booked 886 gross orders on the A220. We booked 1,178 gross orders, as we welcomed the landmark order from Asia for 150 A220. That's a very strong endorsement of the A220 by AirAsia.

Speaker #3: The -1,000 ULR, the ultra-long range, the world's longest-range aircraft recently completed, its first flight. And you saw yesterday the record-breaking Airbus flight of over 24 hours.

Looking at the A320 family, we booked 6,505 gross orders. This brings our backlog for the A320 family to 7,467 aircraft, of which approximately 75% are for the A321.

Speaker #3: Actually, to be precise, 24 hours and 24 minutes. Meanwhile, the 8350 freighter remains right on track for its first flight by the end of this year.

Including the latest order from Scandinavian Airlines, SAS, for 18 A330s. And finally, on the AC50, we booked 66 gross orders.

Speaker #3: Net orders amounted to 821 aircraft, including 65 cancellations, which were largely embedded in our backlog valuation, at the full year. Our backlog in units stood at 9,222 aircraft at the end of June of this year.

As the family continues to evolve, the -10000 ULR, the ultra long range—the world's longest range aircraft—recently completed its first flight.

And you saw yesterday, the record breaking at the flight of over 24 hours.

To be precise, 24 hours and 24 minutes.

Speaker #3: Moving to helicopters, in H1 we booked 215 net orders, compared to 171 in the first half of 2025. During the ILA Berlin Air Show, Airbus helicopters signed a contract with the Ministry of Internal Affairs of Romania, under the European initiative SAFE, Security Action for Europe.

Meanwhile, the A350 freighter remains right on track for its first flight by the end of this year.

Net orders for the month to 821 aircraft, including 65 cancellations, which were largely embedded in our backlog valuation at the full year.

Speaker #3: This acquisition for 12 multi-role helicopters includes 7 H160s and 5 H145s. Earlier this year, two subsidiaries of the Vietnam Helicopter Corporation placed an order for 3 Airbus H225 helicopters, and it's important because it supports the ongoing expansion of their oil and gas offshore operations with these helicopters.

Our backlog in units stood at 92,222 aircraft at the end of June.

Of this year.

Moving to helicopters in H1, we booked 215 net orders, compared to 171 in the first half of 2025.

Speaker #3: Overall, we continue to see good momentum on all our platforms, in both the civil and military markets, and we remain fully focused on delivering on.

During the ELA Berlin, the helicopter's final contract with the Ministry of Internal Affairs of Romania, under the European initiative Safe Security Action for Europe—this acquisition for 12 military rotor helicopters includes 7 H160s and 5 H145s.

Speaker #3: Finally, on defense and space, here we continue to see a very strong commercial momentum across all business lines. With order intake reaching 9.3 billion euros in the first half, on air power, the commercial performance is driven by several important contracts across the portfolio.

Earlier this year, two subsidiaries of the Vietnam Helicopter Corporation placed an order for three Airbus H225 helicopters.

And it's important because it supports the ongoing expansion of their oil and gas offshore operations with this helicopter.

Speaker #3: Notably, we observe good traction related to the C295, with 6 orders year to date, including 4 from Thailand. On A400M, 7 NATO nations have launched a strategic initiative to establish a multinational A400M fleet.

Overall, we continue to see good momentum on all our platforms in both the civil and military markets, and we remain fully focused on delivering on expectations.

Finally, on Defense and Space here, we continue to see very strong commercial momentum across all business lines, with order intake reaching €9.3 billion in the first half.

Speaker #3: And meanwhile, Airbus is working closely with the French Air Force and the French Security Civil, deploying the A400M firefighting kit to support during the ugly wildfires that we see currently in the southwest of France.

On Air Power, the commercial performance is driven by several important contracts across the portfolio. Notably, we observe good traction related to the C295, with 6 orders year to date, including 4 from Tyra.

Speaker #3: Moving to space systems, Airbus was selected to develop and produce two advanced next-generation radar instruments for the Copernicus Sentinel-1 NG constellation, as well as the AEROLUS 2 wind sensing satellites.

On an A400M, seven NATO nations have launched a strategic initiative to establish a multinational A400M fleet.

Speaker #3: Importantly, we continue to foster partnerships and collaboration, notably with European startups, to benefit from their increased speed and agility in the defense sector. We are also advancing AI applications across the sector and beyond, not only through the recent partnership with Mistral AI.

And meanwhile, August is working closely with the French Air Force and the French Sécurité Civile, deploying the A400M firefighting kit to support during the ugly wildfires that we see currently in the southwest of France.

Speaker #3: That's it for me. Now, Thomas, we'll take you through our financials.

Moving to Space Systems, Airbus was selected to develop and produce two advanced next-generation radar instruments for the Copernicus Sentinel-1 NG constellation, as well as the ARROW-2 wind sensing satellite.

Speaker #2: Yes, thank you very much, Guillaume, and hello, ladies and gentlemen. Welcome to the call. I'm now on page 6 of the presentation, and I'd like to take you through our financial performance.

Importantly, we continue to foster partnerships and collaboration, notably with European startups, to benefit from their increased speed and agility in the defence sector.

Speaker #2: So, as you can see on the left-hand side, our H1 2026 revenues increased to 33.2 billion euros. That's up 12% year on year, and it's mainly reflecting higher commercial aircraft deliveries, as well as a higher contribution from our defense and space division, partially offset by the weaker US dollar in 2026 as compared to the first half of last year.

We are also advancing AI applications across the sector and beyond, not only through the recent partnership with Mistral AI.

That's it for me. Uh, now Thomas will take you through our financials.

Speaker #2: On R&D, and you can see that on the right-hand side, our expenses slightly increased versus H1 of last year, and they stood at 1.5 billion euros.

Yes, thank you very much. And hello, ladies and gentlemen. Welcome to the call. I'm now on page 6 of the presentation, and I'd like to take you through the financial performance.

Speaker #2: And let me just remind you that our R&D expenses are expected to increase in 2026, including to support the defense portfolio acceleration. If you turn the page, we can come to EBIT adjusted.

Speaker #2: So, our H1 2026 EBIT adjusted increased to 2.7 billion, from 2.2 billion in the first half of last year. And that increase reflects the higher commercial aircraft deliveries, a strong performance in defense and space, partially offset by a less favorable hedge rate.

So as you can see, on the left-hand side, our H1 2026 revenues increased to €33.2 billion. That's up 12% year-on-year, and it's mainly reflecting higher commercial aircraft deliveries, as well as a higher contribution from our Defence and Space division, partially offset by the weaker US dollar in 2026 as compared to the first half of last year.

Speaker #2: And let me now come to the EBIT adjustments, which you have on the right-hand side of the page, in which we're broadly neutral overall in the first half of this year.

On R&D. And you can see that, on the right-hand side, our expenses slightly increased versus H1 of last year, and they stood at €1.5 billion. Let me just remind you that our R&D expenses are expected to increase in 2026, including to support the defence portfolio acceleration.

Speaker #2: And as you can see, they included a positive 124 million impact from the dollar working capital mismatch and balance sheet revaluation, mainly reflecting the mechanical impact coming from the difference between transaction date and delivery date, of which positive 166 million in the second quarter.

If you turn the page, um, we can come to EBIT adjusted. So, our H1 2026 EBIT adjusted increased to $2.7 billion from $2.2 billion in the first half of last year.

That's like a left favorable hedge rate.

Speaker #2: Secondly, a negative 123 million related to the integration of the former Spirit Aero Systems work packages, of which negative 91 million in Q2. And then again, a positive 60 million linked to the Airbus defense and space workforce adaptation plan, where we released a provision but where the plan is proceeding as intended, and out of the provision release, 46 million concerned Q2.

And let me now come to the EBIT adjustments, which you have on the right-hand side of the page and which were broadly neutral overall in the first half of this year. As you can see, they included a positive €124 million impact from the dollar working capital mismatch and balance sheet revaluation, mainly reflecting the mechanical impact coming from the difference between transaction date and delivery date, of which €166 million was positive in the second quarter.

Speaker #2: And finally, a negative 43 million of other costs, including M&A, of which negative 27 in the second quarter. So, this takes our H1 2026 EBIT reported to 2.7 billion euros, so almost the same number as the EBIT adjusted.

Speaker #2: The financial result was positive 186 million and mainly reflects the revaluation of certain equity investments and of the participations held in the venture capital funds, managed by Airbus Ventures.

Secondly, a negative €123 million related to the integration of the former Spirit AeroSystems work packages, of which negative €91 million was in Q2. And then again, a positive €60 million linked to the Airbus Defence and Space workforce adaptation plan, where we released a provision that we had. The plan is proceeding as intended, and out of the provision release, €46 million concerned Q2.

Speaker #2: And these are partially offset by the revaluation of financial instruments and the evolution of the US dollar. The tax rate on the core business continues to be around 27%.

Speaker #2: The effective tax rate for the half-year is roughly 26%, including the tax effect on the revaluation of certain equity investments, partially offset by the effect of the French surtax.

Finally, a negative €43 million of other costs including M&A, of which negative €27 million in the second quarter. So this takes our H1 2026 EBIT reported to €2.7 billion. So, almost the same number as the EBIT adjustment,

Speaker #2: And for 2026, we expect the French surtax to be broadly in line with 2025, which, as you recall, was roughly 0.2 billion euros. So, with all of that, the net the resulting net income is 2.2 billion euros, with earnings per share of 2 euros and 84 cents.

The financial result was positive €186 million and mainly reflects the fair valuation of certain equity investments and of the participations held in the venture capital funds managed by Airbus Ventures. These are partially offset by the fair valuation of financial instruments and the evolution of the US dollar.

Speaker #2: And our H1 2026 EPS adjusted stood at 2 euros 61 cents, based on an average of 789 million shares. So, let's go to page 8, and onto our US dollar exposure.

The tax rate on the Core Business continues to be around 27%. The effective tax rate for the half year is roughly 26%, including the tax effect on the valuation of certain equity investments, partially offset by the effect of the French Certex.

Speaker #2: In H1 2026, 11 billion dollars of forwards matured, with the associated EBIT impact and euro conversions realized at a blended rate of $1.21 versus $1.18 in H1 2025.

And for 2026, we expect the French certex to be broadly in line with 2023, which as you recall was roughly €0.2 billion.

Speaker #2: And in the first half of 2026, we implemented 9.5 billion US dollars in new coverage over a five-year horizon, with a mix of instruments, including colors.

So with all of that, the net the resulting net income is 2.2 billion euros with earnings per share of 2 euros and 84 cents and our H1 20226 Epps adjusted. Stood at 261 cents based on an average of 789 million shares.

Speaker #2: And the blended rate of $1.22 for this first half's additions reflects in particular the least favorable rate of our colors, which are primarily weighted towards the outer years of our hedging horizon.

So, let's go to page 8 and move on to our US dollar exposure in H1 2026.

Speaker #2: So, as a result, our total US dollar coverage portfolio in US dollar stands at 74.3 billion, with an average blended rate of $1.22 as compared to 75.8 billion US dollars, at $1.22 at the end of 2025.

$11 billion of forwards matured with the associated EBIT impact, and euro conversions realized at a blended rate of 1.21 versus 1.18 in H1 2025.

And in the first half of 2026, we implemented $9.5 billion in new coverage over a 5-year horizon, with a mix of instruments including collars.

Speaker #2: So, now on to a more detailed look at the free cash flow on page 9. Our free cash flow before customer financing was negative 1.2 billion euros in the first half of this year.

And the blended rate of 1.22 for this first half edition reflects, in particular, the least favorable rate of our collars, which are primarily weighted towards the outer years of our hedging horizon.

Speaker #2: And this outflow was mainly driven by the change in working capital. And notably, it, of course, reflects the planned inventory buildup to support our ramp-up across all businesses.

Speaker #2: As you can see in our our capex in H1 of this year was negative 1.5 billion, and to support our ramp-up and the successful integration of the former Spirit Aero Systems work packages, we expect our capex to continue to increase in 2026.

So as a result, our total US dollar coverage portfolio in US dollar stands at 74.3 billion with an average branded rate of $122 as compared to 75.8 billion US dollars at $1.22 at the end of 2025.

So now, on to a more detailed look at the free cash flow. On page 9, our free cash flow before customer financing was negative €1.2 billion in the first half of this year.

Speaker #2: The free cash flow was negative 1 billion euros, including customer financing of positive 0.1 billion, and just as a general comment, we continue to see a diverse and competitive finance landscape in the first half of this year, and currently we expect sufficient liquidity to support our 2026 deliveries.

And this outflow was mainly driven by the change in working capital, and notably, it of course reflects the plant inventory buildup to support our ramp-up across our businesses.

Speaker #2: So, with all of that, as you can see on the right-hand side of the chart, our net cash position stood at 8.4 billion euros at the end of June, also reflecting the dividend payment, as well as the acquisition of Uniqlo, slightly offset by the strengthening dollar environment.

Speaker #2: Flow was negative €1 billion, including customer financing of positive €0.1 billion. And just as a general comment, we continue to see a diverse and competitive finance landscape in the first half of this year, and currently we expect sufficient liquidity to support our 2026 delivery.

As you can see, our CapEx in H1 of this year was negative $1.5 billion, and to support our ramp-up and the successful integration of the former Spirit AeroSystems work packages, we expect our CapEx to continue to increase in 2026.

Speaker #2: And overall, our liquidity remains strong, above 30 billion euros. And with that, I would like to hand it back to Guillaume.

Speaker #2: So, with all of that, as you can see on the right-hand side of the chart, our net cash position stood at €8.4 billion at the end of June, also reflecting the dividend payment, as well as the acquisition of Uniqlo, slightly offset by the strengthening dollar environment.

Speaker #1: Thank you. So, coming to the divisional highlights, and starting with commercial aircraft, in the first half, we delivered as already said, 351 aircraft to 77 customers.

Speaker #2: And overall, our liquidity remains strong, above €30 billion. And with that, I would like to hand it back to Guillaume.

Speaker #1: I am pleased where we stand at the end of H1, with a good, if not a very good, second quarter, that allowed us to recover from the low deliveries we had in Q1.

Speaker #1: Thank you. So, coming to the divisional highlights and starting with commercial aircraft—in the first half, we delivered, as already said, 351 aircraft to 77 customers.

Speaker #1: Looking at the situation by aircraft family, on the A220, we delivered 44 aircraft. The ramp-up is ongoing, and we continue to target a monthly production rate of 13 aircraft in 2028, so that's no change compared to what you know.

Speaker #1: I am pleased with where we stand at the end of H1, with a good, if not very good, second quarter that allowed us to recover from the low deliveries we had in Q1.

Speaker #1: On the A320, we delivered 271 aircraft, of which 167 A321s, representing 62% of the deliveries for the A320 family. The administrative delay that affected the delivery of nearly nearly 20 aircraft to Chinese customers has been resolved, and aircraft have been delivered.

Speaker #1: Looking at the situation by aircraft family, on the A220 we delivered 44 aircraft. The ramp-up is ongoing, and we continue to target a monthly production rate of 13 aircraft in 2028.

Speaker #1: So, that's no change compared to what you know. On the A320, we delivered 271 aircraft, of which 167 were A321s, representing 62% of the deliveries for the A320 family.

Speaker #1: And the panel quality issue is largely behind us, as anticipated. Our production rate trajectory remains unchanged, as a result, again, no change for the A320.

Speaker #1: We expect to reach a rate of between 70 and 75 aircraft a month by the end of 2027, stabilizing at rate 75 thereafter. On wide bodies, we delivered 36 aircraft, of which 10 A330s, and 26 A350s.

Speaker #1: The administrative delay that affected the delivery of nearly 20 aircraft to Chinese customers has been resolved, and the aircraft have been delivered. The panel quality issue is largely behind us, as anticipated.

Speaker #1: Our production rate trajectory remains unchanged. As a result, again, no change for the A320. We expect to reach a rate of between 70 and 75 aircraft a month by the end of 2027, stabilizing at rate 75 thereafter.

Speaker #1: That makes 36. On the A330, no change. We target to reach rate 5 in 2029 to meet customer demand. And on the A350, no change either.

Speaker #1: We continue to target rate 12 in 2028. Our target ramp-up rates for our wide bodies have not changed, even though the strong market demand could support even more.

Speaker #1: Now, let's look at the financials for our commercial aircraft business. The revenues increased 15% year on year, mainly reflecting the higher deliveries. Increased services and partially offset by the US dollar depreciation.

Speaker #1: EBIT adjusted increased to 2 billion from 1.7 billion in H1 2025, driven by the higher deliveries and partly offset again by a less favorable edge rate.

On the A330, no change. We target to reach rate 5 in 2029 to meet customer demands. And on the A350, no change either. We continue to target rate 12 in 2028.

Our target ramp-up rates for our wide bodies have not changed. Even so, the strong market demand could support even more.

Speaker #1: Looking at helicopters next page, in H1 2026, we delivered 144 helicopters which is 6 more than in the first half of 2025. Revenues were broadly stable at 3.7 billion euros, reflecting a slightly less favorable delivery mix, in the first 6 months.

Now, let's look at the financials for our commercial aircraft business.

The revenues increased 15% year-on-year, mainly reflecting the higher deliveries, increased services, and partially offset by the US dollar depreciation.

Speaker #1: As a result, EBIT adjusted stood at 240 million euros, reflecting a solid performance from programs. Offset by higher R&D expenses. And let's complete our review with defense and space.

Speaker #1: Revenues increased 9% year on year, to 6.3 billion euros, driven by higher volumes across all business units. This includes deliveries of 3 A400Ms in the first half, which is plus 2 compared to the first half of 2025.

Adjusted EBIT increased to €2 billion from €1.7 billion in H1 2025, driven by higher deliveries and partly offset again by a less favorable age range. Looking at helicopters, next stage, in H1 2026, we delivered 144 helicopters, which is six more than in the first half of 2025. Revenues were broadly stable at €3.7 billion, reflecting a slightly less favorable delivery mix in the first six months.

Speaker #1: This resulted in an EBIT adjusted of 487 million euros, supported by favorable cost phasing, improved profitability, and higher volumes. Let me highlight that the yearly performance is somewhat front-loaded.

As a result, a bit adjusted to that. €240 million, reflecting a solid performance from programs, offset by higher R&D expenses.

And let's complete our review with Defense and Space revenues, which increased 9% year on year to €6.3 billion, driven by higher volumes across all business units.

Speaker #1: To manage expectations. On to our guidance, which remains unchanged. As the basis for its 2026 guidance, the company assumes no additional disruptions to global trade or the world economy, air traffic, the supply chain, its internal operations, and ability to deliver products and services.

This includes deliveries of three A400M in the first half, which is plus two compared to the first half of 2025. This resulted in an EBIT adjusted of €487 million, supported by favorable cost phasing, improved profitability, and higher volumes.

Speaker #1: The company's 2026 guidance is before M&A, and includes the impact of currently applicable tariffs. On that basis, the company targets to achieve in 2026 around 870 commercial aircraft deliveries, an EBIT adjusted of around 7.5 billion euros, and a free cash flow before customer financing of around 4.5 billion euros.

Let me highlight that the yearly performance is:

from what front loaded.

To manage expectations.

Um, on to our guidance, which remains unchanged.

Speaker #1: We will conclude with our key priorities, which have not changed since the last quarter. And since the foreign borrower show, we remain highly focused on ramping up across all programs, utilizing our strong portfolio to deliver to our commercial and military customers.

As the basis for its 2026 guidance, the company assumes no additional disruptions to global trade or the world economy, air traffic, the supply chain, its internal operations, and ability to deliver products and services.

The company's 2026 guidance is before M&A and includes the impact of currently applicable terms.

Speaker #1: We will continue to be guided by the core pillars of Airbus that underpin our company: safety, quality, integrity, compliance, and security. That's paramount to me.

Speaker #1: Against a complex geopolitical backdrop, we draw strength from our global footprint and our multi-year diverse backlog. I see strong momentum now, and ahead of us, as we embark on the phase highlighted at the business update.

We will conclude with our key priorities, which have not changed since the last quarter.

Speaker #1: With a clear focus on advancing our sustainability ambition, we will continue to deliver profitable growth while driving our key priorities forward. And now, on this positive note, I hand over to you, JC, to open the Q&A.

Speaker #2: Thank you, Guillaume. And Thomas, in order to allow an efficient Q&A session, let me set a couple of guidelines. First, please introduce yourself and your company before you dive in.

Since the fund, we remain highly focused on ramping up across all programs, utilizing our strong portfolio to deliver to our commercial and military customers. We will continue to be guided by the core pillars of Airbus that underpin our company: safety, quality, integrity, compliance, and security. That’s paramount to me. Again, in a complex geopolitical backdrop, we draw strength from our global footprint and our multi-year, diverse backlog.

I see strong momentum now and ahead of us as we embark on this phase. As highlighted at the business update,

Speaker #2: Second, we ask you to limit yourself to two questions so that we can keep things fair for everyone in the queue. And finally, a small favor for the speakers: please try to keep a steady pace and speak clearly.

With a clear focus on advancing our sustainability ambition, we will continue to deliver profitable growth while driving our priorities forward. And now, on this positive note, I hand over to you, JC, to open the Q&A.

Speaker #2: It really helps us and everyone listening in to fully capture your questions. And now, Laura, could you please explain the Q&A procedure for participants?

Thank you, GM and Thomas. In order to allow an efficient Q&A session, let me set a couple of guidelines.

Speaker #3: Thank you. We will now begin the question and answer session. If you want to ask a question, please press #5 on your telephone keypad.

But please introduce yourself and your company before you dive in.

Speaker #3: We have a first question from Ross Low from Morgan Stanley. Please go ahead.

Speaker #4: Hi, good evening. Thanks very much for taking my questions. So the first one on the defense margin in Q2, very strong above 10%. Were there any one-offs in that number?

Second, we ask you to limit yourself to two questions so that we can keep things fair for everyone in the queue. And finally, a small favor for the speakers: Please try to keep a steady pace and speak clearly. This will help us and everyone listening in to fully capture your questions.

And now, Laura, could you please explain the Q&A procedure for participants?

Speaker #4: You obviously mentioned profit is a bit front-loaded this year. If you could maybe just explain exactly what's driving that, and your expectations for margins through the second half.

Thank you. We will now begin the question-and-answer session.

Please press #5 on your telephone keypad.

Speaker #4: And then, moving to commercial, I know you don't tend to like speaking about monthly production rates. But can you maybe just give us a broad sense of where you are on the core A320 and A350 programs at the moment?

We have a first question from Ross Low from Morgan Stanley.

Please go ahead.

Speaker #4: It looks as though you're maybe around the 60 on the A320 and 6 on the A350. And so when should we expect the next rate break?

Speaker #4: Thank you.

Speaker #1: So I'll start by the second one. And as you have rightly noticed, I don't like to be commenting on monthly production rates. I more believe in, well, at least quarterly production rates, if not yearly ones.

Hi, good evening. Uh, thanks very much for taking my questions. Uh, so the first 1 on, on the defense margin in Q2 very strong, um, above 10%. Um, were there any 1 off, uh, in that number, uh, you obviously mentioned Prophet, is, is a bit front-loaded this year. If you can maybe just explain exactly what's driving that, um, and your expectations from margins through the second half.

And then, moving to commercial, I know you don't tend to like speaking about monthly production rates.

Speaker #1: So we're in ramp-up trajectories. That's what counts to me. We deliver the number of aircraft in the first half of the year that is very consistent with the trajectory.

Speaker #1: We manage to recover in Q2 the missing deliveries of Q1 for a number of reasons I indicated in my introduction. And that's really what matters from my perspective.

But can you maybe just give us a broad sense of where you are on the core 8320 and 8350 programs at the moment? Um, it looks as though you're maybe around 60 on the 8320 and 6 on the 8350. And so, when should we expect the next rate break? Thank you.

So, I start with the second one.

Speaker #1: Please consider we're on the trajectory we need for this year, and with the midterm target. And on defense margins, Thomas, any one-off? What do you say about the Q2 margin?

Speaker #4: Well, Ross, I was sure that you would spot that. So the way I would characterize it, no, there is no specific one-off in H1 or in Q2.

Speaker #4: However, as I said many times, also. At other occasions, never overinterpret a single quarter in terms of margin trajectory. Indeed, I would say the first half for defense was a semester where many things just aligned very positively.

And as you have rightly noticed, I don't like to be commenting on monthly production rates. I more believe in, well, at least quarterly production rates, if not yearly ones, so we're in ramp-up trajectories. Um, that's what counts to me. We delivered the number of aircraft in the first half of the year that is very consistent with the trajectory. Uh, we managed to recover in Q2 the missing deliveries of Q1, for a number of reasons I indicated in my, um, in my introduction, and that's really what matters from my perspective. Please consider, we are on the trajectory we need for this year and with the midterm target.

Speaker #4: So we had the export of the A400M, for example, we are planning to increase R&D, but that has not fully materialized yet. Same is true for headcount.

Speaker #4: There will be an increase, but it has not materialized so much in the first half. So I would say it's just many things coming together that produced a very good margin, despite the absence of any let's say accounting one-off.

And on defense, margins Thomas, any 1 of what do you say about the Q2 margin? Well, plus, I was sure that you would spot that. So, um, the way I would characterize it, no, there is no specific 1 off in H1 or in Q2. However, um, as I said, many times also at,

On other occasions, um, never overinterpret a single quarter in terms of margin trajectory. Indeed, I would say...

Speaker #4: But I think we should not get ahead of ourselves so it's not indicative for a continuation of that margin in the second half of the year.

Speaker #4: But of course, we feel it's a good sign that we're on track to the midterm target that we have communicated for defense last week.

Speaker #4: Very helpful. Thank you.

Speaker #3: We have a question from Benjamin Hillon from Bank of America. Please go ahead.

Speaker #4: for a continuation of that margin in the second half of the year. But of course, we feel it's a good sign that we're on track to the mid-term target that we have communicated for defense last week.

Speaker #5: Yes. Good evening, guys. I hope you're both well. Thank you for the question. First question was on the A400M and Guillaume, you mentioned the announcement around the multinational force.

Speaker #4: Very helpful. Thank you.

Speaker #5: Could you give us a little bit of guidance and color about what that could mean and potentially from an audit perspective? And then secondly, on spirit, you've owned the business now for a while.

Speaker #3: We have a question from Benjamin Hillon from Bank of America. Please go ahead.

Speaker #5: Can you just give us a bit of an update? What are you seeing? How has that business performing? Where are you on the trajectory to driving the improvements there for the 350?

Speaker #5: Yes. Good evening, guys. I hope you're both well. Thank you for the question. First question was on the A400M and Guillaume, you mentioned the announcement around the multinational force.

Speaker #5: Thank you.

Speaker #1: Thanks, Ben. And I think, yes, I can say we are both well, and I hope you're well too. A400M, yes, it's a good endorsement of the A400M when it comes to the European needs for airlift.

Speaker #5: Could you give us a little bit of guidance and color about what that could mean potentially from an audit perspective? And then secondly, on spirit, you've owned the business now for a while.

Speaker #5: Can you just give us a bit of an update? What are you seeing? How has that business performing? Where are you on the trajectory to driving the improvements there for the 350?

Speaker #1: Actually, we see a good momentum on A400M on different fronts, and that's really what matters to me. So we feel confident with the short-term, midterm trajectory for the A400M.

Speaker #5: Thank you.

Speaker #1: Thanks, Ben. And I think, yes, I can say we are both well. And I hope you're well too. A400M, yes, it's a good endorsement of the A400M when it comes to the European needs for airlift.

Speaker #1: And we also hear good feedbacks on the A400M, where it is used in operation, and I was really happy with the first feedback from operations of the test, the use of the A400M for firefighting operation.

Speaker #1: Actually, we see a good momentum on A400M on different fronts. And that's really what matters to me. So we feel confident with the short-term, mid-term trajectory for the A400M.

Speaker #1: That's something we were targeting and we were considering now for a few years, but that's now something that has been that has been tested in real conditions.

Speaker #1: And we also hear good feedbacks on the A400M where it is used in operation. And I was really happy with the first feedback from operations of the test, the use of the A400M for firefighting operation.

Speaker #1: So good momentum for A400M. The multinational force is indeed for us a good opportunity. It follows the path of the MRTT, where we have the same pattern, the same frame.

Speaker #1: That's something we were targeting and we were considering now for a few years. But that's now something that has been that has been tested in real conditions.

Speaker #1: And that gives a lot of satisfaction to the European countries which are part of the multinational force. So I see it as a real strong potential for use of A400M.

Speaker #1: So good momentum for A400M. The multinational force is indeed for us a good opportunity. It follows the path of the MRTT, where we have the same pattern, the same frame.

Speaker #1: Spirit.

Speaker #4: So many on spirit. I would say, I mean, we own the business since December 8th last year. No real major surprise. And that means we also confirm the financial assessment for what it means for 2026 and 2027, namely a negative low triple-digit EBIT impact this year, but a high negative triple-digit impact in terms of cash flow.

Speaker #1: And that gives a lot of satisfaction to the European countries which are part of the multinational force. So I see it as a real strong potential for use of A400M.

Speaker #1: Spirit.

Speaker #2: So many on spirit.

Speaker #4: Why is cash flow so much more negative? Because we're front-loading the investments that we have to make. Secondly, working capital is an issue we want to build some buffer stocks.

Speaker #4: I would say, I mean, we own the business since December 8th last year. No real major surprise. And that means we also confirm the financial assessment for what it means for 2026 and 2027, namely a negative low triple-digit EBIT impact this year, but a high negative triple-digit impact in terms of cash flow.

Speaker #4: We're paying our suppliers in time to stabilize the supply chain. And of course, the integration costs also flow into the cash flow. So quite frankly, no change with respect to what we have given you as financial indication earlier this year at the full-year call.

Speaker #4: And the other thing that I would say also no change in terms of integration. It progresses well, of course, challenging in both key locations.

Speaker #4: Why is cash flow so much more negative? Because we're front-loading the investments that we have to make. Secondly, working capital is an issue we want to build some buffer stocks.

Speaker #4: But I would say it's in line with our ramp-up ambitions that we have for the A350 and the 220. So therefore, nothing to report that is off track with respect to the ramp-up.

Speaker #4: We're paying our suppliers in time to stabilize the supply chain. And of course, the integration costs also flow into the cash flow. So quite frankly, no change with respect to what we have given you as financial indication earlier this year at the full-year call.

Speaker #5: Very clear. Thank you.

Speaker #3: We have now a question from Milen Körner from Bauklis. Please go ahead.

Speaker #4: And the other thing that I would say also no change in terms of integration. It progresses well. Of course, challenging in both key locations.

Speaker #6: Yes. Good evening, Guillaume, Thomas, and Jean-Christophe. I have also two questions, please. The first one on the free cash flow. Your guidance implies around 5.7 billion of free cash flow in the second part of this year.

Speaker #4: But I would say it's in line with our ramp-up ambitions that we have for the A350 and the 220. So therefore, nothing to report that is off track with respect to the ramp-up.

Speaker #6: Last year, you generated 6.2. On lower delivery volume, and your inventory ordinarily at 7 billion higher that that would be where at the end of December.

Speaker #5: Very clear. Thank you.

Speaker #3: We have now a question from Milen Kerner from Barclays. Please go ahead.

Speaker #6: Excluding the spirit impact, can you help us reconcile what is preventing a higher level of cash flow this year? And then my second question is on effects and hedging.

Speaker #6: Yes. Good evening, Guillaume, Thomas, and Jean-Christophe. I have also two questions, please. The first one on the free cash flow. Your guidance implies around 5.7 billion of free cash flow in the second part of this year.

Speaker #6: Last year, you mentioned that you were looking to optimize your hedging policy and potentially introducing more options. And yet, the 9.5 billion of new hedges you added in H1 were against stock around 1.22 dollar euro.

Speaker #6: Last year, you generated 6.2. On lower delivery volume, and your inventory are nearly at 7 billion higher than that would be where at the end of December.

Speaker #6: Excluding the spirit impact, can you help us reconcile what is preventing a higher level of cash flow this year? And then my second question is on effects and hedging.

Speaker #6: Can you update us where you are in that process and whether we should expect any change in the hedging strategy going forward? Thank you.

Speaker #4: Okay. So I think those two questions go both to me. So there's two difficult

Speaker #6: Last year, you mentioned that you were looking to optimize your hedging policy. And potentially introducing more options. And yet, the 9.5 billion of new hedges you added in H1 were against stock around 1.22 dollar euro.

Speaker #1: for me, Thomas. And I'd like to hear the answer of the first one.

Speaker #4: So on the first one, I think what I said for the EBIT in the single quarter also applies for cash flow. So cash flow, of course, is not only it's not always fully linear.

Speaker #6: Can you update us where you are in that process? And whether we should expect any change in the hedging strategy going forward? Thank you.

Speaker #4: So we were very pleased with the positive 1.3 billion that we had in Q2. But again, things are not super steady. I think with what we have achieved in the first half of the year, we are on a good way for the full year in terms of the guidance.

Speaker #4: Okay. So I think those two questions go both to me. So they're pretty

Speaker #1: difficult for me, Thomas. And I'd like to hear the answer of the first one.

Speaker #4: So on the first one, I think what I said for the EBIT and the single quarter also applies for cash flow. So cash flow, of course, is not only it's not always fully linear.

Speaker #4: But I would also say let's not get ahead of ourselves. Inventory buffer is an important thing because we have to cater for the ramp-up not only for 2026, but then also we want to have a much smoother transition into 2027.

Speaker #4: So we were very pleased with the positive 1.3 billion that we had in Q2. But again, things are not super steady. I think with what we have achieved in the first half of the year, we are on a good way for the full year in terms of the guidance.

Speaker #4: And secondly, as you indicated, spirit, a lot of the things in terms of cash flow are still ahead of us. So I would say the numbers that we're seeing are consistent with the guidance for the full-year cash performance of the company.

Speaker #4: But I would also say let's not get ahead of ourselves. Inventory buffer is an important thing because we have to cater for the ramp-up not only for 2026, but then also we want to have a much smoother transition into 2027.

Speaker #4: On the second one, the hedging policy, indeed, we have said that we have also used options that was what I was referring to when I said we have also implemented collars in our hedging strategy.

Speaker #4: And secondly, as you indicated, spirit, a lot of the things in terms of cash flow are still ahead of us. So I would say the number that we're seeing are consistent with the guidance for the full-year cash performance of the company.

Speaker #4: These collars are reflected with the least favorable rate. So meaning using collars does not necessarily lead to a, let's say, optically better hedge rate in the portfolio that we have because we give you the most conservative number.

Speaker #4: On the second one, the hedging policy, indeed, we have said that we have also used options. That was what I was referring to when I said we have also implemented collars in our hedging strategy.

Speaker #4: But of course, they provide the optionality that if the dollar is strengthening, that we can exercise those collars at a more favorable rate. And by the way, that's also what we have already been doing on a small scale in the first half of this year, which encourages us to increase or to go down that path even further.

Speaker #4: These collars are reflected with the least favorable rate. So meaning using collars does not necessarily lead to a, let's say, optically better hedge rate in the portfolio that we have because we give you the most conservative number.

Speaker #4: And increase the share of options or collars, as you might call them, in our total portfolio. So again, I think the optics of what I've given you, the 122, maybe doesn't fully reflect the optionality and the opportunity that we have here.

Speaker #4: But of course, they provide the optionality that if the dollar is strengthening, that we can exercise those collars at a more favorable rate. And by the way, that also what we have already been doing on a small scale in the first half of this year, which encourages us to increase or to go down that path even further.

Speaker #4: And currently, I would say we're pleased with what we're seeing. And we will continue that hedging policy. Gradually, but no fundamental change. I think that was also your question.

Speaker #4: And increase the share of options or collars, as you might call them, in our total portfolio. So again, I think the optics of what I've given you, the 122, maybe doesn't fully reflect the optionality and the opportunity that we have here.

Speaker #4: Thank you, Thomas.

Speaker #3: The next question comes from Chloé Lemarie from Jefferies. Please go ahead.

Speaker #6: Good evening, Guillaume, Thomas, and Jean-Christophe. Thank you for taking my question. I have a first one. On the number of gliders, previously, you said you were no longer building any.

Speaker #4: And currently, I would say we're pleased with what we're seeing. And we will continue that hedging policy. Gradually, but no fundamental change. I think that was also your question.

Speaker #6: So I'm just checking whether this is still the case. And if you had any in your inventory at the end of the first. And the second question is a follow-up on Ben's question on spirit.

Speaker #6: Thank you, Thomas.

Speaker #4: Thank you, Thomas.

Speaker #3: The next question comes from Chloé Lemarie from Jefferies. Please go ahead.

Speaker #6: I was wondering if you'd be able to maybe refine the range of the low three-digit median impact you mentioned for the folio, or at least share what it looked like so far in H1.

Speaker #6: Good evening, Guillaume, Thomas, and Jean-Christophe. Thank you for taking my question. I have a first one. On the number of gliders previously, you said you were no longer building any.

Speaker #6: Please, thank you.

Speaker #6: So, I'm just checking whether this is still the case, and if you had any in your inventory at the end of the first. And the second question is a follow-up on Ben's question on Spirit.

Speaker #1: Thomas.

Speaker #4: So maybe on the spirit, no, I think I would leave it here with the guidance in terms of spirit impact. So therefore, I think no further comment on this one.

Speaker #6: I was wondering if you'd be able to maybe refine the range of the low three-digit million impact you mentioned for the four-year, or at least share what it looked like so far in H1.

Speaker #4: And maybe Guillaume, you take it on the gliders.

Speaker #1: While we have no gliders in the sense of aircraft not being delivered, solely because of engines. So we are in a normalized situation. We don't have buffers of engines.

Speaker #6: Please, thank you.

Speaker #1: Thomas.

Speaker #4: So maybe on the Spirit—no, I think I would leave it here with the guidance in terms of Spirit impact. So, therefore, I think no further comment on this one.

Speaker #1: So we don't have engines ahead of what we need from Pratt & Whitney. But we don't have aircraft non-delivered because of missing engines. We have few other reasons why we don't deliver engines across without engines.

Speaker #4: And maybe, Guillaume, you take it on the gliders.

Speaker #1: We have no 'gliders' in the sense of aircraft not being delivered solely because of engines. So we are in a normalized situation. We don't have buffers of engines.

Speaker #1: But I would not call them gliders in the sense of aircraft ready to deliver, but not delivered because of engines. That's an important information indeed.

Speaker #6: I can just maybe follow up. Should we assume maybe it's still to do with some remaining panel issue that you're still in the process of solving?

Speaker #6: Or maybe interiors?

Speaker #1: Panels? No. Panel is behind us. If that's the question. The panel issue is behind us. It's resolved. Okay.

We have a few other reasons why we don't deliver aircraft without engines. But I would not call them gliders in the sense of aircraft ready to deliver but not delivered because of engines. That's an important piece of information in the

Speaker #6: Yes. Very clear.

Speaker #3: The next question comes from Sam Burgess from Goldman Sachs. Please go ahead.

I can just maybe you follow up, um, should should we assume maybe? It's uh, it's still to do with some remaining, you know, panel issue that you're telling the processes of solving or maybe Interiors.

Speaker #5: Thank you very much. Good evening, Guillaume, Thomas, and Jean-Christophe. Thank you very much for the question. Firstly, coming back to A400M, do you see any potential for additional countries to join that initiative?

The panel is behind us, if that's the question.

Okay, thank you. The panel issue is behind us; it's resolved.

Okay.

Speaker #5: And is it mainly about shared service and support, or following on from what Ben was saying, do you see demand there for incremental orders?

Thank you.

Purchase from Goldman Sachs.

Speaker #5: And then the second question, is just whether there's any additional color you can offer in terms of the discussions with Pratt and any update you can give us there in terms of 2027 and 2028 picture.

Please go ahead.

Thank you very much. Good evening. Again, Thomas, and John Kristoff, thank you very much for the question. Firstly,

Coming back to A400, um,

Speaker #5: Thanks.

Speaker #1: So the short answer to your second than we think we'll continue to get from Pratt & Whitney for 2026, 2027, and beyond the number of engines that have been finally agreed.

do you see any potential for additional countries to join that initiative? Um, and uh, you know, is it mainly about shared service and support or following on from what Ben was saying, you know, do you do you see demand for incremental? Um, orders and then the second question,

Speaker #1: And which are the current basis for the 2026 delivery guidance and consistent with the midterm targets that we have given before. So nothing very significant to report with Pratt, except that we continue to negotiate the dispute when it comes to the outcomes of the revised downwards number for 2026 and 2027.

Is there any additional color you can offer in terms of the discussions with Pratt, and any update you can give us there in terms of the '27 and '28 picture? Thanks.

Um, just for the—the short answer to your second question is I don't have much more to say than, uh, we, um,

Speaker #1: When it comes to the A400M, yes, indeed, there could be more countries joining the initiative for the multinational European force. The pulling and sharing.

Speaker #1: I'm not in the details of this, so I know it's open for other countries, but it's already very significant. And yes, indeed, it opens the it's consistent with the market dynamics that we see on the A400M.

We think we will continue to get from Pratt & Whitney, for 2026-27 and beyond, the number of engines that have been finally agreed and which are the current basis for the 2026 delivery guidance, and consistent with the midterm targets that we have given before. So, nothing very significant to report with Pratt, except that we continue to...

negotiate the dispute when it comes to the, um,

Speaker #1: It's slowly moving, but it's moving in the right direction for more customers ordering A400M. So that's something that we will be happy to report as things move forward.

Outcomes of the revised downward numbers for '26 and '27.

Speaker #1: But as you know, with military customers, we are not commenting on well, not with civil customers either, but even less with military customers. We are not commenting before things become official from the customer perspective because it's defense matters.

Speaker #1: So good momentum. Good hope for more orders moving forward. And a very concrete multinational force that is something that is actually public already.

Speaker #5: Very helpful. Thank you very much.

Speaker #1: Pleasure.

When it comes to the a400m. Yes, indeed. Um, there could be more countries joining the uh Initiative for the multinational, European Force, the cooling and sharing. Um I'm not in the details of this. So I know it's it's open for other countries but it's already very significant. And yes, indeed, it opens the why it's consistent with the market dynamics that we see on the air for modem. It's slowly moving, but it's moving in the right direction for more customers ordering a400m. So that's something that we will be happy to report as things move forward. But as you know, with military customer we are not

Speaker #3: Next question comes from Olivier Brochet from Rothschild & Co. Please go ahead.

Speaker #5: Yes. Good evening, Guillaume. Good evening, Thomas. Thanks for taking my questions. I have two small ones, actually. The first one is on the press release, you call out Airbus Venture and their revaluation there.

Commenting on, well, not with civil customers either, but even less with military customers, we are not commenting before things become official from the customer perspective because it's a different matter. So, good momentum, um,

Good. We hope for more orders moving forward, and the very concrete multinational force—that is something that is actually public already.

Speaker #5: Could you maybe give us a bit of color on what drove that revaluation, what assets are behind that? And the second one another detail is you recently made the acquisition of a small component manufacturing company in Spain, MASA.

Very helpful. Thank you very much.

Next question comes from Olivia.

Please go ahead.

Speaker #5: Could you just share the rationale of why you did that? And if there is anything else to happen in aerostructure for the company. Thanks.

Speaker #4: Yes. Let me maybe start with MASA. And I think what I would say is that it's not indicative of any change in our strategy with respect to vertical integration.

Speaker #4: To be very clear. We are happy with the way how we are integrated in our supply chain and how the split of work is.

Speaker #4: So therefore, the thing is not to be overinterpreted. But there's always sometimes situation where such an acquisition from a more defensive perspective can make sense.

Yes. Uh, good evening. Good evening, Thomas. Thanks for taking my questions. I have 2 2, small ones. Actually. The first 1 is, uh, on the, in the press release. You, you call out Airbus Venture and revaluation there. Uh, could you maybe, uh, uh, give us a bit of color on what drove that revaluation, what assets are behind that? And the second 1. Uh, another detail is, um, you you recently made the acquisition of a, a small component Manufacturing Company in Spain. Masa, could you just share the rationale of why you did that? And if there is anything, uh, else to happen in in aerostructure, for, for the company. Thanks.

Speaker #4: So can be a succession problem, or can be other things. And here we felt it would be good if we are in control of this business.

Speaker #4: But again, I would say no strategic change of direction to be interpreted into the acquisition. Secondly, yes, on Airbus Ventures, we have invested in or Airbus Ventures exists since a number of years.

Speaker #4: And they are investing into various startup companies in the field of aerospace. And that has been a successful journey so far. And so therefore, as part of the normal recurring revaluation of the portfolio, we're recognizing also the gains that they have in their portfolio.

Yes. Let me maybe start with, uh, with Mata. And I think what I would say is that it's not indicative of any change in our strategy with respect to vertical integration, to be very clear. We are happy with the way we are integrated in our supply chain and how the split of work is. So, therefore, the thing is not to be over-interpreted, but there's always sometimes a situation, um, where such an acquisition is from a more defensive perspective,

Speaker #4: But of course, I should clearly say those gains have not been realized to the biggest extent. But those are gains in terms of valuation and not yet in terms of cash

Perspective can make sense. So, it can be a succession problem or it can be other things, and here we felt it would be good if we are in control of this business. But again, I would say no strategic change of direction should be interpreted into this, into the acquisition.

Speaker #5: Thomas, is this related to the space industry, by any chance?

Speaker #4: Yes. Aerospace in the broader sense, but also some specific space investments.

Speaker #5: Okay. Very clear. Thank you very much.

Speaker #3: The next question comes from Sebastian Growie from BNP Paribas. Please go ahead.

Portfolio. We're recognizing also the gains that they have in their portfolio, but of course, I should clearly say those gains have not been realized to the biggest, biggest, biggest extent. But those are gains in terms of valuation, and not yet in terms of cash returns.

Speaker #6: Thanks for the evening. Sebastian here from BNP. Hi Guillaume, hi Thomas, and hi Jean-Christophe. So for me then, the first one is on commercial.

Thomas, is this related to, uh, the space industry by any chance?

Speaker #6: Guillaume, on your part.

Speaker #1: Can you speak a bit louder, please? Can you speak a bit louder, please?

Yes, aerospace in the broader sense, but also some specific space investments.

Speaker #6: Yep. I will. Guillaume, on a prior call today, you seemingly pointed to deliveries in a range of 850 to 890 aircraft in 2026. That was on the wires today.

Okay, very clear. Thank you very much.

The next question comes from Sebastian Groix from BNP Paribas.

Speaker #6: So my question is, if you can provide more color whether your engine supply has improved as of late. And the second question goes to Thomas.

Please go ahead.

Speaker #6: The guidance implies adjusted EBIT for the group. And the second half, that is about 100 million lower, compared to 2025. I heard your comments to not extrapolate the strong H1 trajectory at defense and space.

Do for me then. Um, the first one is on Commercial. Like, can you, can you speak a bit louder? Please, can you speak a bit louder, please?

Speaker #6: But are there any other building blocks that you might want to call out in order to explain why the decline in the guidance for adjusted EBIT?

Speaker #1: Okay. I'll take the first question, and I'm surprised it makes news. Because actually, at Airbus and now for many, many, many years, when we give a guidance in number of deliveries for the year, and we say around 870, for example, for this year, it means around means plus minus 20.

Yeah, I will. On a prior call today, you seemingly pointed to deliveries in a range of 850 to 890 aircraft in '26. That was on the wires today. Um, so my question is if you can provide more color on whether your engine supply has improved as of late. And the second question goes to Thomas. Um, the guidance implies adjusted EBIT for the group in the second half that is about $100 million lower compared to '25. Um, I heard—

Speaker #1: And that was the case for the previous year, where we had a delivery guidance for 2025 of around 820, that we changed in the back end of the year for around 790.

Comments to not extrapolate the strong H1 trajectory at Defence and Space, but are there any other building blocks that you might want to call out in order to explain why the guidance has declined just a little bit?

Speaker #1: And we finally delivered, as you remember, 793. So the guidance for this year is unchanged. It's around 870 aircraft. And if you apply the plus minus 20 that we consider is consistent with around, that's going from 870 minus 20 equals 850 to the upper part of the range, which is 870 plus 20.

Okay, I'll take the first question, and I'm surprised it makes news, uh, because actually, um, at Airbus, I know for many, many, many years, when we give a guidance in number of deliveries for the year,

Speaker #1: That makes 890. So this is exactly no news. It's just explaining with the numbers what around 870 means or repeating it, but apparently it was useful to repeat it because it is surprising to some.

And that was the case, uh, for the previous year, where we had the delivery guidance for 2025 of around 820, that we changed at the back end of the year to around 790.

Speaker #1: I look at you, Thomas, for the answer on the second question on EBIT?

Speaker #4: Yes. I think Sebastian, I mean, essentially your question is on what is the remaining to do for the year and how does it align.

Speaker #4: So I think what the key building blocks that play a role here, of course, is the deliveries first of all. So if you want to bring it to the midpoint of the guidance, so the 870, and Guillaume explained always, it's plus minus 20.

Uh, so the guidance for this year is unchanged, it's around 870 across, and if you apply the plus or minus 20 that we consider is consistent with 'around', that's going from 870 minus 20, which equals 850, to the upper part of the range, which is 870 plus 20, that makes 890. So this is exactly no use.

Speaker #4: But if you want to bring it to the midpoint, that would mean an additional 32 deliveries in the second half of the year. I would say, however, that not all of these aircraft will be A320s.

Uh, explaining with the numbers, what around 870 means, or repeating it, but apparently it was useful to repeat it because, um, it is surprising to some. Uh, I look at you as for the answer on the second question in a bit. Yes. Uh, I think, Sebastian, I mean, essentially your question is on what is the main to-do for the year and how does it align? So,

Speaker #4: So therefore, not all of them with margin. So please deduct a certain number, and then you can multiply with, I would say, the contribution that most of you have in your models.

Speaker #4: Let's assume that brings you to 0.3 positive. Then you have a couple of things against that. One is the FX hedging. Let's say negative impact.

Speaker #4: Of roughly 1 cent degradation, secondly, you have the spirit effect, where we only have digested half or even maybe less than half in the first half of the year.

I think, what, what the key building blocks? Um, that that play a role here. Of course, is the deliveries, first of all. So, if you want to bring it to the midpoint of the guidance, for the 870 in Gom explained, always it's plus minus 20. But if you want to bring it to the midpoint, that would mean an additional 32 deliveries in the second half of the year. Um, I would say however that not all of these aircraft will be um A320 so therefore not all of them with margin, so please deduct, a certain number and then you can multiply with

Speaker #4: And thirdly, remember, R&D, we in pointed to an increase, but that has not materialized to the full extent in the first half of the year.

Um, I would say the contribution, um, that most of you have in your models.

Speaker #4: So you should expect some further increase in the second half. So three headwinds, I would say, against the positive volume development. And then, of course, you do have some positive contribution, I would say, from the divisions.

Speaker #4: So a slight positive. But if you take all of these together, that should bring you to the midpoint of the guidance also in terms of EBIT.

Let's assume that brings you to 0.3 positive. Then you have a couple of things uh against that 1 is the um FX hedging. Um um let's say negative impact of roughly 1 cent to degradation. Uh secondly. You have the spirit effect um where we only have digested half or

Speaker #6: Right. Thank you very much for this.

Speaker #3: Next questions comes from Christophe Menard from Dench Bank. Please go ahead.

Speaker #1: Yes. Yes. Good evening. Thank you for taking my question. I had two first one. Can I labor a little bit more into the defense and space performance for H1?

Or you can maybe have less than half in the first half of the year. And thirdly, uh, remember R&D, we had pointed to an increase, but that has not, um, materialized to the full extent in the first half of the year. So you should expect some further increase in the second half. So three, um, headwinds, I would say, against the positive volume development, and then, of course, you do have—

Of contribution, I would say, from the divisions—um, so slight positive. But if you take all of these together, that should bring you to the midpoint of the guidance. Also, in terms of EBIT,

Speaker #1: Obviously, I understood what you said. But is there any element related to space, which is structural and that could explain also that solid margin performance?

Right, thank you very much for this.

Next question comes from Christopher from BenchBank.

Speaker #1: And another detailed question, more of a detail, but the H1 or the Q2 performance in Airbus commercial was actually slightly better than expected. Is it purely mixed, or did you, for instance, manage to retrieve or some of the tariff you had to pay last year and you could repatriate, so to say, in Q2?

Please go ahead.

Speaker #1: Thank you.

Speaker #6: Thomas?

Speaker #4: So I mean, is there anything specific in defense and space? And you asked for space. Nothing other than we are very pleased with the, I would say, turnaround that we're doing in space.

Speaker #4: And that is materializing. So we are on plan, if not ahead of plan, with the improvements that we wanted to make. And so therefore, I will not disclose now individual numbers for the subdivisions.

Uh, yes, um, yes, good evening. Thank you for taking my question. Um, I had 2 uh, first 1 um, can I labor a little bit more into the defense and space performance uh for H1 uh, obviously understood what you said but uh, is there any element related to space, uh, which is structural and that could explain also that, um, uh, solid margin performance and another detail qu a question, more of a detail. But, um, the, the H1 or the Q2 performance in our in Airbus commercial was actually slightly better than, um, expected. Uh, is it purely mixed or did you, for instance, managed to, um, retrieve or, um, some of the Tariff, uh, uh, you have to pay last year and you you could um, well, repatriate. So to say, uh, in Q2, thank you.

Speaker #4: But what we're doing in space is better than what we probably or slightly better than what we had in our internal plans. And therefore, I think it's a reconfirmation that the turnaround that the new management team has done in space is actually working.

Speaker #4: And then on commercial, no, in the second quarter, there was no positive effect on tariffs. We're claiming, of course, tariffs that we have paid, but we have not booked anything positive in our results.

Speaker #4: In the second quarter of the year, what I would point to, though, is that indeed, as you indicated, the mix, of course, was pretty positive.

Speaker #4: So if you look at the 45 aircraft, that we are ahead of last year, they are mostly there's only 220. So they all carry almost a margin.

Speaker #4: And so therefore, that was, of course, helpful for the first half of the year, in terms of mix and so I indicated that for the second half, that mix might be slightly less positive.

So I mean is there anything specific in um, defense and space? And you ask for space nothing. Other than we're very pleased with the I would say turnaround that we're doing in space and that is materializing. So uh we are um, on plan is not ahead of plan with the improvements that we wanted to make and so therefore, I will not disclose now, individual numbers for the, uh, for the subdivisions. But what we're doing in space is better than what we probably were slightly better than what we had in our internal, uh, plans. And therefore, I think it's a reconfirmation that the turnaround that the new management team has done in space. Is actually is actually working and then on Commercial. Um, no in um, in the second quarter, there was no positive effect on on tariffs. Um, we're claiming of course, tariffs that we have paid, but we have not booked anything positive in.

Speaker #4: And I think that goes back to the remaining to-do bridge that I tried to answer in the previous question.

Speaker #1: Thank you very much. Very clear.

Speaker #3: The next questions comes from Yann de Glacepenant from UBS. Please go ahead.

Speaker #5: Thanks very much. I hope you can hear me. It's Ian Douglas Pennant. UBS. First question is on the next generation of aircraft. Some of the engine players have been making comments on the business structure, potential business structure of the next generation aircraft after the comments that you made.

Our results, uh, in the second quarter of the year, um, what I would point to, though, is that indeed as you indicated, the mix, of course, was pretty positive. So, if you look at the 45 A350s that we are ahead of last year, um, they are mostly—there's only three A220s—so they all carry almost a margin. And so, therefore, that was, of course, helpful for the first half of the year, uh, in terms of—

And so, I indicated that for the second half, that mix might be slightly less positive, and I think that goes back to the remaining to-do bridge that I tried to answer in the previous question.

Thank you very much. That was very clear.

Speaker #5: Last week, emphasizing the significant upfront costs of developing an engine. Is there anything that you'd like to add to that conversation? Especially around your willingness and ability to support them with the costs early in the next engine program.

The next question comes from Yandow from UBS. Please go ahead.

Speaker #5: And the second question is on cost control. We're now two years after lead, roughly we're six months on from roughly from Pratt & Whitney's communication to you on 2026 engines.

Thanks very much. I hope you can hear me. It's Ian Douglas from Finance at UBS. First question is on the next generation of aircraft. Some of the engine players have been making comments.

Speaker #5: Is the cost structure now in the right place going into the second half? Or is there still an opportunity or work done, conversations to be had at this point?

Speaker #5: Thanks very much.

Speaker #1: So I'll be short. No, there's nothing I'd like to add on the conversation. When it comes to changing or adapting the business structure as we move to the future aircraft, nothing else than we see opportunities to tap more into the life cycle revenues and margins of the airplanes and the equipment.

Uh, on the business structure or potential business structure of the Next Generation. Aircraft after the comments that you made last week, uh, emphasizing the significant UPC upfront costs of developing, an engine. Is there anything that you'd like to add, uh, to that conversation, uh, especially around your willingness and ability to support them, uh, with the costs early in the next engine program? And the second question is on, um, cost control, when out 2 years after lead roughly, with, with 6 months on from roughly from Pratt and Whitney's communication to you on 2026 engines is the cost structure now, uh, in the right place, going into the second half or is there still an opportunity or you know, work done conversations to be had, uh, at this point. Thanks very much.

Speaker #1: And I'm not specific to certain equipment. And for the second question, Thomas?

Hello. Um, I'll be short now. There's nothing I'd like to add on the, uh, on the, um,

Speaker #4: And maybe in terms of cost, I would say yes. I mean, lead was quite successful in 2024 and 2025. And we're continuing, I would say, to monitor costs very strictly.

Conversation when it comes to um, changing or adapting. Um, the business structure as we move to, um, the future aircraft, nothing else than we see opportunities.

Speaker #4: But I would rather see this as an exercise of cost containment and not so much cost reduction. So therefore, I would, if I was you, not plug in anything specific as a tailwind in your models.

An equipment.

Speaker #4: But of course, we're very, very focused that costs are increasing way slower than our revenue line. And that's how I would characterize it. So nothing specific on the horizon in terms of a cost tailwind that I would put in the models.

Um, and for the second question,

Speaker #5: Thank you very much.

Speaker #3: We have now a question from Douglas Horn from Bernstein. Please go ahead.

Speaker #1: Good morning. Good evening. Thank you. I want to first go back to the earlier question on production rates. And as a business update, I asked Lars about getting the 12 per month on the A350.

Maybe in terms of cost, I would say yes. I mean lead was uh, quite successful in 2024 and 2025. Um, and we are continuing, I would say to monitor costs, a very strictly. Um, but I would rather see this as an exercise of Cost Containment and not so much cost reduction. So therefore I would, um, if I was you not plug in anything specific as a Tailwind in your models. But, of course, we're very, very focused that uh, costs are increasing, uh, way slower than our Revenue line, and that's how I would characterize it. So nothing specific on the horizon. In terms of a, a cost Tailwind that I would put on the models.

Speaker #1: And he said that you were already at a production rate of 8 to 9 per month. But that is higher than what we've seen in terms of deliveries.

Thank you very much.

Speaker #1: So first, perhaps you could explain that difference. What creates that gap? And should we expect it to close? And then second, you also talked a lot about building a services business.

We have now a question from Ducas Horn from Burstein. Please, go ahead.

Good morning or good evening. Thank you.

Speaker #1: And seeing a good growth opportunity there, both organic and through acquisitions. And so how do you envision the steps going forward to grow services?

Speaker #1: And when should we expect the material contribution to overall growth?

Yeah. It's, I want to First go back to the earlier question, on, on production rates. And, um, you know, the business update I asked for, is about getting the 12 months on the a350 and he said that you were already at a production rate of 8 to 9 per month, but but that is, um, you know, higher than what we've seen in terms of deliveries,

Speaker #4: Okay. Thank you, Doug.

Speaker #1: So on the A350, as far as I can recall, I think Lars said that the ecosystem which using my words would have been the supply chain, was operating at rates around 8 to 9 a month at the moment of the comment.

So first, um, perhaps you could explain that difference what creates that Gap and should we expect it to close? And then, um, second you also talked. Um, a lot about building, a Services business and, and seeing a good growth opportunity there, both organic and through Acquisitions. And so, how do you envision the steps going forward, um, to growth services? And when should we expect the material contribution to overall growth?

Speaker #1: And as you know, the supply chain is ahead of the file. So in a ramp-up phase, we are always in a situation where the supply chain and what Lars called the ecosystem, as far as I can remember, is, of course, at higher rates than the rates we have for assembly.

Okay, thank you, Doug. Um, so on the, um,

On the a350.

As far as I can recall, I think, uh, last said...

That the ecosystem, which—using my words—would have been the supply chain.

Speaker #1: You know that we measure the rates at the so-called station 40 at Airbus, at the station where we put the wings on the fuselage.

Um, was operating, uh, at rates around 8 to 9 a month? Uh,

Speaker #1: Which also comes significantly ahead of the time of delivery of the aircraft. So in a ramp-up, you have the supply chain operating at higher rates than the station 40, where we measure rates.

Speaker #1: That is itself operating at higher rates than the deliveries. And this is, of course, on average. Because when you have a situation like what we had in the first quarter of this year, we had a production rate that was rather linear.

Speaker #1: But we had aircraft that could not be delivered either because of industrial challenges, namely the panels, or for administrative reasons, namely the issue we faced with the delivery of aircraft in China, for certification items reasons.

At the moment of the comments and as you know, the supply chain is ahead of the fund. So um, in the homepage phase, we are always in a situation where the supply chain and the, what last call the ecosystem, as far as I can remember, uh, is, of course, at higher rates than, than the rates we have for assembly, you know, that we measure the rate at the so-called station, 40 at nus at the station, where we put the wings on the fuse alarm.

Speaker #1: So there's always a non-linearity on deliveries that is significantly higher generally speaking than production especially when production runs reasonably well. And the supply chain is operating at higher rates than the Airbus deliveries.

Speaker #1: And I think the reason why Lars made the comment is to highlight the fact that our production system in the external part, in the supply part, is on track to support the rate increase that we want to demonstrate at Airbus.

Which also comes significantly ahead of the time of delivery of the aircraft. So in the hump up, you have the supply chain operating at a higher rate than the station property, where we measure rate, that is itself operating at a higher rate than the deliveries. And this is, of course, on average, because when you have a situation like what we had in the first quarter of the year, we had a production rate that was rather linear, but we had aircraft that could not be delivered, either because of industrial challenges—namely, the panels—or for administrative reasons, namely the issue we faced with the delivery of our cross aircraft in China for certification items. So there’s always a nonlinearity on deliveries that is significantly higher.

Speaker #1: It's our way to check that the supply chain is actually delivering on the expectations for higher rates moving forward. So I hope it clarifies the answer or the comment made by Lars.

Speaker #1: And again, that's top of my head of what Lars said. I think it was that the business update.

Speaker #4: I think that was yes.

Speaker #5: Yeah. So maybe let me clarify on the service topic. So what we are targeting is 10 billion in commercial aircraft services revenues by 2030.

Generally speaking than production, especially when production runs reasonably well and the supply chain is operating at higher rates than the Airbus deliveries. And I think the reason why last made the comments is to highlight the fact that our production system and in the external part in the supply part is uh on track to support the rate. Increase that we want to demonstrate at Airbus. It's our way to check uh that the supply chain is actually a delivering on the um, expect

Speaker #5: And in terms of profitability, we're expecting to cross the line of double-digit profitability in the midterm. And as we said in the business update last week, that is clearly an upgraded target.

Speaker #5: Because we're focused on the efficiency of that business and also cost reductions. Now, how will we get there? It's a combination of both organic growth and efficiency improvements, inorganic potential acquisitions.

Stations for higher rates, moving forward. So I hope that clarifies the answer and the comments made by Lars. And again, this is off the top of my head of what Lars said—I think it was at the Business Day—um, yes.

Speaker #5: You've seen that we have closed the Unital acquisition in H1 of this year. So that is definitely playing into that. Now, it's very difficult to plan, of course, for MOD.

Speaker #5: But part of the growth path is also potential further bolt-ons in the next years to come. And maybe just to remind everyone what is the commercial aircraft service businesses in our case.

Speaker #5: It really consists of two parts. One is the highly profitable trading services. And that is things like spare parts, training, digital solutions, etc. And the other one, the second one covers the core support costs, which we have, to ensure that the aircraft that we have delivered are operating as promised to their life cycle.

Speaker #5: So it's really two very different businesses that are grouped in here. And the main growth, of course, should come through the highly profitable part where also all the acquisitions should play into.

Speaker #4: We have five minutes.

Is 10 billion in commercial, aircraft Services, revenues by 2030. And in terms of profitability, we're expecting to cross the line of double-digit profitability in the midterm. And as we said in the business update last week, that is clearly an upgraded Target because we're focused on the efficiency of that business, and also cost reductions. Now, how will we get there? Uh, it's a combination of both organic growth uh and efficiency improvements but also some inorganic potential Acquisitions. Uh, you've seen that, we have closed, the uni, collect acquisition in H1 of this year, so that is definitely playing into that. Um, now it's very difficult to plan, of course, for Emma day, but part of the growth path is also potential for the boltons in the next years to come. And maybe just to remind uh, everyone what is the commercial aircraft service businesses? In our case, it's really consists of 2 parts. 1 is the

Speaker #1: That's very good. Thank you.

Speaker #4: This might be our last question depending on how complex it is to answer.

Speaker #3: Thank you. Next question is from Ken Herbert from RBCCM. Please go ahead.

Speaker #1: Yes, hi. Good evening. I'll keep these two questions relatively simple. Thank you for the time. The first is you typically see at least last year a significant step-up in helicopter margins profitability from or profitability, I should say, EBIT from first to second half.

Um, highly profitable trading services—and that includes things like spare parts, training, digital solutions, etc. And the other one, the second one, covers the core support costs, which we have to ensure so that the aircraft we have delivered are operating as promised throughout their life cycle. So it's really two very different businesses that are grouped in here. The main growth, of course, should come through the highly profitable part, where also all the acquisitions should play a role.

We have 5 minutes.

This might be our last question, depending on how complex it is to answer.

Speaker #1: Is there any reason we shouldn't see that this year again in 2026? And then my second question, on the A350, on the freighter, you called out first flight this year.

Thank you. Next question is from Ken Herbert from RBC Capital Markets.

Just go ahead.

Speaker #1: Can you just give a little more detail Guillaume as to your schedule for the freighter beyond first flight in terms of when you'd expect entry into service and how quickly you expect to ramp production on that very end of the A350?

Speaker #1: Thank you.

Speaker #4: I'll start with this one. Yes, I confirm we expect the first flight before the end of this year, which means start of flight test immediately and a very dense flight test program targeting certification and first delivery.

Yes, I good evening. I I I'll keep these 2 questions, relatively simple. Uh thank you for the time. Um, the first is you typically see at least last year a significant Step Up in helicopter. Margins, uh, profitability from, or profitability I should say, ebit from first to second half.

Speaker #4: Ideally by end of next year. And then the ramp-up, so delivery of aircraft in rather significant numbers as soon as 2028.

Is there any reason we shouldn't see that this year again in 2026? And then my second question on the A350, on the freighter—you called out first flight this year. Can you just give a little more detailed GUI as to your schedule for the freighter beyond first flight? In terms of when you'd expect entry into service, and how quickly you expect to ramp production on that variant of the A350? Thank you.

Speaker #5: So yeah. And so maybe on the helicopter topic, so I mean, yes, your observation is right. Margins are increasing in the second half of the year relative to the first.

Speaker #5: What is driving that is that helicopters last year had a very back-end loaded delivery profile. And I mean, without making any too precise of a prediction, I would say the profile will not materially change this year.

I’ll start with this one. Um, yes, I confirm we, uh, expect the first flight before the end of this year, which means the start of the flight test immediately. And, um, a very dense flight test program, uh, targeting, uh, certification and, um, first delivery.

Uh, ideally by the end of next year.

Speaker #5: So since the delivery profiles are similar, I think that could be a good indication that also the margin trajectory could be relatively similar to last year.

And then the ramp up. So, delivery of aircraft in rather significant numbers as soon as 2028.

Speaker #4: Maybe a very last question for the remaining two minutes. If not, we conclude.

So, yeah, maybe on the helicopter topic. I mean, yes, your observation is right—the margins are increasing in the second half of the year relative to the first. What is driving that is that helicopters, last year, had a very back-end loaded delivery profile, and...

Speaker #3: We have a next question from Robert Stallart from Vertical Research. Please go ahead.

Speaker #5: Thanks so much. Good evening.

Speaker #1: Good evening. How are you, Robert?

I mean, without making any, uh, too precise of a prediction, I would say the profile will not materially change this year. So, uh, since the delivery profiles are similar, I think that could be a good indication that also the margin trajectory could be relatively similar to last year.

Speaker #5: Not too bad. You sneak me in. Thank you very much. A couple of quick ones for you, Guillaume. First of all, these very serious forest fires you've seen in France and Spain, have they had any impact on the Airbus business?

Maybe you didn't have a question for the remaining two minutes.

Speaker #5: And then secondly, Lars talked last week about potentially raising A350 production beyond 12 a month, which would require another foul. Where would you put it?

If not, we conclude.

We have a next question from Robert Stallard from Vertical Research.

Please go ahead.

Speaker #5: Thank you.

Thanks so much. Good evening.

Speaker #1: So on the first one, no material impacts so far. On the business, but we've had employees well, no longer accessing their place and actually even some employees losing their house, their house has burned.

Good evening. How are you, Robert?

Speaker #1: So it's really a very tragic situation when it comes to individual situations. We in the period where most of the activities were about to pause for the summer break or had already paused on the Friday, so that's the current situation.

Not too bad. You sneak me in, thank you very much. Um, couple of quick ones for you, Dion. First of all, um, these very serious forest fires. Um, you've seen in France and Spain have they had any impact on the Airbus business? Uh, and then secondly, um, last talked last week about potentially raising, uh, a350 production Beyond 12 a month, which would require another foul. Uh, where would you put it? Thank you.

So, on the first one, no material impact so far on the business, but we've had the employees.

Speaker #1: And it's very important for us that the security civil forces and the firemen manage to contain the fire in areas not impacting large industrial activities, not only ours, but the one of others.

Speaker #1: So which is the case for the moment. Well, no comment on the second one. We are investigating what we could do potentially beyond red 12.

Speaker #1: We are not advanced enough to be able to give indications of what it will be specifically, how much by when, and even less where that would take place.

Is losing their house. The house has burned, so it's really a very tragic situation. When it comes to individual situations, we are in the period where most of the activities were about to pause for the summer break, or had already paused on Friday. So, um, that's the current situation, and it's very important for us that the, um, security, um...

Speaker #1: This is for later.

Speaker #5: Okay. Thank you so much.

Speaker #4: Thank you, everyone. Thank you for taking the time to join us today. If you have any further questions, please reach out to Victoria Olivier or myself, and we'll get back to you as quickly as we can.

Security forces and the firemen managed to contain the fire in areas not impacting large industrial activities, not only ours, but also those of others, which is the case for the moment.

Speaker #4: As we close, a special thank you to Edward for his last disclosure today. Best of luck.

Speaker #1: Excellent one, Edward. Bravo.

Speaker #4: In your new challenge. And this brings our session to a close for today. Have a great evening, everyone.

Um, well, no comment on the second one. We are investigating what we could do potentially beyond Read 12. We are not advancing enough to be able to give indications of what it will be specifically, how much, by when, and even less where that would take place. This is for later.

Okay, thank you very much.

Speaker #1: Thank you, everyone.

Speaker #5: Thank you. Bye.

Thank you, everyone. Uh, thank you for taking the time to join us today. If you have any further questions, please reach out to Victoria, Olivia, or myself, and we'll get back to you as quickly as we can.

Uh, as we close, a special thank you to Edward for his last disclosure today. Best of luck—excellent one-on-one in your new challenge. And, uh, this brings our session to a close for today. Have a great evening, everyone. Thank you, everyone. Thank you. Bye.

Ladies and gentlemen, the conference is now concluded. You may disconnect your telephone. Thank you for joining, and have a pleasant evening. Goodbye.