Key Highlights
- Q1 adjusted operating profit reached €300M, representing a 52% year-over-year decline from €624M
- Quarterly revenue totaled €12.65B, down 7% year-over-year while surpassing analyst projections
- Aircraft deliveries totaled 114 units in Q1, falling from 136 in the prior-year period and trailing Boeing’s 143 deliveries
- Ongoing engine supply constraints from Pratt & Whitney continue impacting production capacity
- Company maintains full-year delivery guidance of 870 aircraft
Airbus delivered challenging first-quarter results, with adjusted operating profit reaching €300 million, marking a 52% decrease from the €624 million recorded in Q1 2025. Quarterly revenue settled at €12.65 billion, representing a 7% year-over-year contraction.
The revenue figure exceeded analyst projections despite the profit shortfall. Market expectations had called for €12.39 billion in revenue alongside €348 million in adjusted operating profit, based on company-compiled consensus figures. Earnings per share reached 74 euro cents, substantially above the forecasted 44 euro cents.
Delivery performance emerged as the primary challenge. The aerospace manufacturer completed 114 commercial aircraft deliveries during Q1, representing a 16% decline from the 136 units delivered in the comparable 2025 quarter. This performance trailed competitor Boeing, which achieved 143 aircraft deliveries over the same timeframe — a noteworthy contrast given Boeing’s recent operational difficulties.
Engine supply bottlenecks remain the core obstacle. Pratt & Whitney, a major U.S.-based supplier, has experienced persistent delivery delays, constraining Airbus’s production throughput. The dispute has escalated to legal proceedings — Reuters disclosed in March that Airbus is exploring potential damage claims against the supplier.
Delivery Volumes Present Ongoing Challenge
Airbus maintained its full-year guidance, reaffirming the target of 870 commercial aircraft deliveries for 2026. The company also stood by its production rate objective of 70 to 75 A320-family aircraft monthly by the conclusion of 2027 — a target previously adjusted downward in February from an initial goal of 75 per month by early 2027.
Advancing from 114 quarterly deliveries to a pace supporting annual targets requires substantial acceleration in upcoming quarters. Jefferies analysts stated clearly before the earnings release: “The pace at which Airbus can translate this into higher deliveries has become the key swing factor for earnings and valuation.”
The commercial aircraft division recorded an 11% sales decline during the quarter. Helicopter revenues remained stable compared to the prior year, while the defence and space segment expanded 7%. The defence unit delivered a notable bright spot, generating adjusted core profit of €130 million versus analyst expectations of €111 million.
Market Perception Evolving
Analyst outlook on Airbus has moderated since early 2026, partially due to Boeing’s recovery trajectory. Boeing posted a smaller-than-anticipated loss in Q1, with progress evident across its commercial aircraft operations as the company navigates an extended turnaround following quality and production challenges.
Boeing CEO Kelly Ortberg indicated demand resilience persists, with minimal effects from Middle East trade tensions. UBS highlighted earlier this month that replacement demand maintains sufficient strength to support Airbus even amid elevated fuel costs.
Currency headwinds affected Airbus performance during the quarter. Commercial aviation pricing predominantly occurs in U.S. dollars, creating pressure on euro-denominated earnings when currency rates shift.
Order momentum continues for Airbus, supported by a substantial backlog. Current investor focus centers on delivery execution — Q1 results highlighted the persistent gap between order volumes and production output.
The defence and space division’s adjusted core profit of €130 million, exceeding the €111 million forecast, represented the quarter’s standout performance area.
