Key Takeaways
- Q1 adjusted operating profit at Airbus collapsed 52% year-over-year to €300M from €624M
- Quarterly revenue declined 7% to €12.65B, yet surpassed Wall Street projections
- Aircraft deliveries totaled just 114 units in Q1, down from 136 last year and trailing Boeing’s 143
- Ongoing engine supply constraints from Pratt & Whitney hamper production output
- Management maintains 2026 delivery guidance at 870 commercial aircraft
The European aerospace manufacturer reported disappointing first-quarter results, with adjusted operating profit plummeting 52% to €300 million compared to €624 million in the year-ago period. Quarterly sales reached €12.65 billion, marking a 7% year-over-year contraction.
While profitability disappointed, the revenue figure managed to outperform Wall Street’s expectations. The Street 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 registered at 74 euro cents, significantly exceeding the anticipated 44 euro cent figure.
The core challenge centers on aircraft deliveries. The planemaker transferred only 114 commercial aircraft during the first quarter, representing a 16% decline from 136 units delivered in the corresponding 2025 period. More significantly, this figure trailed competitor Boeing, which managed 143 aircraft deliveries during the same timeframe — a noteworthy reversal given Boeing’s well-documented recent operational challenges.
The root cause remains consistent: insufficient engine supply. U.S. supplier Pratt & Whitney continues experiencing delays in engine deliveries, effectively capping Airbus’s production throughput. The situation has escalated to litigation, with Reuters reporting in March that Airbus is actively pursuing compensation claims against the supplier.
Delivery Challenges Take Center Stage
Airbus maintained its annual guidance without revision, continuing to target 870 commercial aircraft deliveries throughout 2026. The company also reiterated its production rate objective of 70 to 75 A320-family aircraft monthly by late 2027 — already a reduced ambition from the original 75-per-month target initially scheduled for early 2027, which was adjusted downward in February.
Accelerating from 114 quarterly deliveries to a trajectory supporting full-year objectives will demand substantial production increases in coming quarters. Jefferies analysts articulated the challenge succinctly prior to 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 year-over-year, while the defence and space segment expanded 7%. The defence unit emerged as a relative bright spot, generating adjusted core profit of €130 million versus analyst projections of €111 million.
Market Confidence Waning
Analyst confidence surrounding Airbus has moderated since early 2026, influenced partly by Boeing’s emerging recovery trajectory. Boeing posted a smaller-than-anticipated quarterly loss in Q1, demonstrating progress across its commercial aviation operations as the turnaround from prolonged quality and manufacturing issues continues.
Boeing CEO Kelly Ortberg indicated demand fundamentals remain intact, with minimal effects from Middle East trade tensions. UBS observed earlier this month that aircraft replacement demand remains sufficiently robust to support Airbus even amid elevated fuel costs.
Currency headwinds also impacted quarterly performance. Commercial aviation pricing predominantly occurs in U.S. dollars, meaning exchange rate fluctuations can pressure euro-denominated financial results.
Order momentum remains solid for Airbus, supported by a substantial production backlog. However, investor focus has shifted decisively toward delivery execution — and the first quarter demonstrated that the gap between order commitments and actual output persists.
The defence and space segment’s adjusted core profit of €130 million, exceeding the €111 million consensus, represented the quarter’s most notable positive surprise.
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