Key Highlights
- Q1 adjusted operating profit plummeted 52% year-over-year to €300M from €624M
- Quarterly revenue declined 7% to €12.65B, though it exceeded market expectations
- Aircraft deliveries totaled just 114 units in Q1, down from 136 the previous year and trailing Boeing’s 143
- Ongoing engine supply constraints from Pratt & Whitney hamper production capacity
- Annual delivery guidance of 870 aircraft maintained despite first quarter shortfall
The European aerospace manufacturer reported challenging first-quarter results, with adjusted operating profit collapsing 52% to reach €300 million compared to €624 million in the corresponding period of 2025. Quarterly revenue registered at €12.65 billion, reflecting a 7% year-over-year contraction.
While the profit figure disappointed, the revenue outcome surpassed Wall Street projections. Market analysts had anticipated €12.39 billion in sales and €348 million in adjusted operating profit, based on consensus estimates compiled by the company. Earnings per share reached 74 euro cents, significantly exceeding the forecasted 44 euro cents.
The core challenge centers on aircraft deliveries. The aerospace manufacturer completed delivery of merely 114 commercial planes during Q1, representing a 16% decrease from 136 units in the year-ago quarter. This performance also lagged behind competitor Boeing, which managed to deliver 143 aircraft over the same timeframe — a notable distinction considering Boeing’s well-publicized operational difficulties.
The primary obstacle remains engine availability. U.S. supplier Pratt & Whitney has consistently fallen behind on engine delivery schedules, creating a bottleneck that limits Airbus‘s production throughput. The dispute has escalated into legal territory — Reuters disclosed in March that Airbus is actively pursuing compensation claims against the engine manufacturer.
Production Output Remains Critical Challenge
The aircraft maker maintained its annual outlook, continuing to target 870 commercial aircraft deliveries throughout 2026. The company also stood by its production rate objective of 70 to 75 A320-family aircraft monthly by the conclusion of 2027 — though this target was already reduced in February from the initial goal of 75 units monthly by early 2027.
Accelerating from 114 quarterly deliveries to a run rate supporting the annual target demands substantial production increases in coming 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 experienced an 11% sales decline during the quarter. Helicopter revenue remained stable compared to last year, while the defence and space segment advanced 7%. The defence business emerged as a relative success story, delivering adjusted core profit of €130 million versus analyst projections of €111 million.
Market Perception Evolving
Wall Street sentiment surrounding Airbus has moderated since early 2026, partially due to Boeing’s improving operational trajectory. Boeing disclosed a smaller-than-anticipated quarterly loss in Q1, demonstrating progress across its commercial aviation operations as the company navigates an extended recovery following quality control and manufacturing challenges.
Boeing CEO Kelly Ortberg indicated that customer demand has remained resilient, with minimal effects from Middle Eastern trade tensions. UBS highlighted earlier this month that aircraft replacement demand continues at levels sufficient to support Airbus even amid elevated fuel costs.
Currency headwinds also affected Airbus performance during the quarter. Since commercial aviation contracts are predominantly priced in U.S. dollars, exchange rate fluctuations can negatively impact euro-denominated financial results.
Order momentum remains robust for Airbus, supported by a substantial production backlog. However, investors are currently focused on delivery execution — and the first quarter demonstrated that the gap between order commitments and actual output remains substantial.
The defence and space segment’s adjusted core profit of €130 million, surpassing the €111 million consensus, represented the quarter’s strongest performance relative to expectations.
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