Ian Douglas-Pennant

Ian Douglas-Pennant from UBS asked how Airbus will balance its profitability with the financial health of its suppliers if tariffs persist, and whether customer conversations and negotiations for new orders are changing due to the tariff situation.

Answer

CEO Guillaume Faury stated that since Airbus is primarily based in Europe, the vast majority of its operations are not impacted by U.S. tariffs. For U.S. operations, the company is working to derisk its supply chain. Regarding customers, he noted discussions are currently focused on managing short-term tariff impacts for U.S. clients, similar to the situation five years ago, and it has not yet affected long-term contracting. He expressed optimism that the industry will revert to a zero-tariff environment.

Questioned the perceived conservatism in the company's guidance for sales, margin, and cash flow, asking for the source of uncertainty. Also inquired about the exceptionally strong margins in the Dynamics business, asking if it was due to a one-off or represents a new run rate.

Answer

The executive responded that the guidance is not vague but reflects substantial growth, and any uncertainty is related to the broader geopolitical landscape (e.g., NATO spending) rather than specific internal concerns. Regarding Dynamics, the strong margin was due to a favorable delivery mix, not a one-off. The ambition for the division remains mid-double-digit margins, though quarterly results will fluctuate based on mix.