Airbus Defence & Space has reported a loss of €566 million ($590 million) against its activities last year, with its space programmes and the A400M tactical transport having contributed to the deficit. The unit had posted a profit of €229 million in 2023.
The main factor behind the loss in 2024 was a €1.3 billion charge incurred on its space activities, including €300 million in the fourth quarter.
“On defence and space, we took further steps to transform the business and the organisation. The extensive technical reviews of our space programmes have now been completed,” says Airbus chief executive Guillaume Faury.
“We are evaluating strategic options, and we have started exploratory discussions with Thales and Leonardo… aimed at assessing different scenarios to consolidate and strengthen the European space sector, and add value to the main stakeholders in this industry,” he said during the company’s annual results call on 20 February.
“We are in a situation where some US players are disrupting the ecosystem and going at scale on new technologies. In Europe we have technologies – sometimes even better ones – but we are missing the scale we need to be competitive in this new environment,” he says.
“We want Airbus to have a stake in a large company – we would be happy if the end result looks something like the MBDA model,” he adds, referring to Europe’s guided weapons specialist.
Meanwhile, “On the A400M programme, an additional update of the contract estimate at completion was performed and a net charge of €121 million recorded”; including €118 million in the last quarter.
Airbus says the charge largely reflected “updated assumptions regarding the new contract amendment with the launch nations and [European procurement body] OCCAR and risk in the production plan”.
Major contracts secured during the year included a Global Support Services 3 deal covering sustainment, plus a Block Upgrade 0 deal, “which represents the first upgrade of the A400M’s operational capabilities beyond the scope of the original launch contract”, Faury says.
“In light of uncertainties regarding the level of aircraft orders, the company continues to assess the potential impact on the programme’s manufacturing activities,” Airbus says. The company delivered seven A400Ms last year, including a first example to new operator Kazakhstan, and returned 17 retrofitted examples to its customers.
Airbus’s defence unit ended 2024 with 48 A400Ms still in its backlog. “We are engaging in export campaigns that take more time to come to conclusions than what I’d like,” Faury notes.
Meanwhile, the airframer notes: “Risks on the qualification of technical capabilities and associated costs remain stable, with no major variation compared to 2023.” Chief financial officer Thomas Toepfer says the A400M programme is expected to be cost-neutral this year, before delivering improved performance from 2026.
Despite its poor financial return, Airbus’s defence unit achieved a record order intake of €16.7 billion last year, “while being more selective on our bidding and more prudent on risk profiles”, Faury notes.
Business highlights included Spain’s Halcon II contract for a further 25 Eurofighters and an Italian commitment for up to 24 of the same type, with both deals announced last December.
Airbus Defence & Space’s order book at year-end stood at €46.8 billion.
