Al Root

Airbus's surprising 2026 financial guidance goes beyond its battle with Boeing. It reaches down the aerospace supply chain, in particular to the engines made by RTX and GE Aerospace that are under the wings of modern jetliners.

Thursday, Airbus reported fourth-quarter earnings per share of EUR3.27 ($3.84). Wall Street was looking for EUR2.64, according to FactSet. Results looked fine. Still, the stock dropped 6.8% in overseas trading.

The problem was guidance. Airbus expects to make 870 jets in 2026, up from just under 800 in 2025. Growth is good, but Wall Street expected something north of 900 planes.

One of the issues is engines. Airbus A320 jets are powered by Pratt & Whitney geared turbofan, or GTF, engines from RTX or Leap engines from CFM, a 50/50 joint venture between GE Aerospace and Safran.

"While we have secured a critical portion of our trajectory, some supply chain tensions continue, notably with the engine maker Pratt & Whitney," said Airbus management on Thursday.

"RTX had previously stated that it was balancing its GTF shipments to Airbus and to the [maintenance] pool," wrote Vertical Research Partners analyst Rob Stallard on Thursday.

Airbus hasn't reached an agreement on the number of GTFs it would get this year, so it took a "prudent view" regarding guidance, added Stallard. Fewer engines will delay the A320 production ramp to 75 a month until the end of next year.

Airbus's prior goal was 75 a month in 2027, not the end of 2027.

RTX declined to comment on GTF production.

The engine problem highlights supply-chain problems in the commercial aerospace industry since the pandemic. Boeing and Airbus have struggled to meet rising demand for jets, albeit for different reasons. Boeing has also dealt with 737 MAX design and quality issues.

The 737 MAX is the competitor to the A320 family of jets. It's powered by CFM Leap engines.

RTX stock was down much of the day, but closed up 0.3% on a good day for defense contractors. Lockheed Martin and Northrop Grumman shares hit 52-week highs after management teams made positive comments about defense at a Citi investment conference.

GE Aerospace shares added 1.6%, closing at $334.74, while the S&P 500 and Dow Jones Industrial Average dropped 0.3% and 0.5%, respectively. Shares traded as high as $335.88, a new 52-week high.

GE Aerospace might be benefiting from the GTF constraints, although planes are ordered years in advance. It is unlikely that potential 2026 production constraints would ever cause customers to switch from a GTF to a Leap. Those are very long-tailed decisions for airlines.

Safran's stock didn't get a bump from the Airbus news. Its shares dropped 1.5% in overseas trading.

RTX and Airbus will work out a production plan. Thursday's trading is a reminder that building planes has been much tougher than collecting orders for planes in the past few years.

Write to Al Root at allen.root@dowjones.com

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February 19, 2026 17:42 ET (22:42 GMT)

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