Airbus reported a significant decline in first-quarter profits, with adjusted operating profits falling by 52% to 300 million euros, compared to 624 million euros in the same period last year [1]. The company's first-quarter sales amounted to 12.65 billion euros ($14.82 billion), slightly above analyst expectations of 12.58 billion euros, while earnings per share (EPS) were 74 euro cents, also surpassing the expected 44 euro cents [1]. The drop in profits was attributed to slower deliveries of commercial aircraft, which totaled 114 in the first quarter, down from 136 a year earlier [1]. This slowdown was primarily due to ongoing shortages of Pratt & Whitney engines, as highlighted by CEO Guillaume Faury, who stated that Airbus continues to ramp up production while navigating these supply chain challenges [1].
Despite the profit decline, Airbus reiterated its guidance to deliver 870 commercial aircraft in 2026, which is below the roughly 880 deliveries analysts had anticipated. The company emphasized that this forecast does not account for any additional disruptions to global trade, air traffic, or the supply chain [1]. CEO Faury also noted that Airbus is closely monitoring potential impacts from conflict in the Middle East, though no further details were provided [1].
In terms of segment performance, Airbus' commercial aircraft unit sales fell by 11% year-over-year, while the helicopters division remained flat and the defence and space segment grew by 7%. Overall, total revenue declined by 7% in the quarter [1]. However, gross commercial aircraft orders increased significantly, totaling 408, which is a 46% rise from the previous year [1].
Market sentiment towards Airbus has become more negative since the start of the year, as rival Boeing appears to be recovering from its own series of crises. Boeing recently reported a narrower-than-expected loss in the first quarter and is making progress in its turnaround efforts, particularly in its commercial aircraft unit [1]. Both Airbus and Boeing continue to face supply chain challenges in the aftermath of the Covid-19 pandemic [1].
CONCLUSION
Airbus' first-quarter results reflect significant headwinds from engine shortages and slower aircraft deliveries, leading to a sharp drop in profits and revenue. While the company maintains its delivery guidance for 2026 and saw a strong increase in new orders, investor sentiment has weakened as Boeing shows signs of recovery. The market will be watching closely for further supply chain developments and any impact from geopolitical tensions.