Airbus Expected to Post Higher Revenue, Earnings

Dow Jones
07/28
 

Airbus is scheduled to report results for the second quarter on Wednesday. Here is what you need to know:

 

REVENUE FORECAST: The European plane maker is expected to post revenue of 20.25 billion euros ($23.02 billion) for the three months to the end of June, according to a market consensus provided by the company based on estimates from 20 analysts. The forecast is above revenue of 16.07 billion euros that Airbus reported a year earlier.

 

EARNINGS FORECASTS: Net profit should come in at 1.59 billion euros, according to the consensus, above 732 million euros from a year earlier. Adjusted earnings before interest and taxes--Airbus's preferred measure of profitability--are expected at 2.19 billion euros compared with 1.58 billion euros a year earlier.

 

Airbus shares are up about 7% since the year began. Supply-chain hurdles have held Airbus back when investors were hoping the group would cash in on Boeing's woes following the blowout of an Alaska Airlines door plug in 2024 that exposed the U.S. jet maker to tighter regulatory scrutiny. Boeing shares are down 2.6% since January as executives work to restore its fortunes.

 

WHAT TO WATCH:

--SUPPLY CHAINS: Airbus's procurement struggles have weighed on aircraft production and, consequently, deliveries after a Pratt & Whitney engine shortage forced the company to slow production of its best-selling A320 jets. Some analysts had raised concerns that Airbus would be forced to slash its target of roughly 870 plane deliveries this year because of supply-chain issues as it did back in 2022, 2024 and 2025. However, there have been signs of improvement after the company dispatched 351 planes between January and the end of June, with a noticeable uptick in recent months. MWB Research's Jens-Peter Rieck wrote in a note to clients that strong deliveries had put an end to the debate on whether Airbus should downgrade its annual target, which now looks more achievable. Analysts and investors will be on the lookout for management commentary on how the supply chain is holding up.

--GUIDANCE: Airbus hosted a business update event in London last week, saying it aimed to significantly boost its profitability in the coming years. It is projecting adjusted EBIT between 12 billion euros and 13 billion euros in 2029, up from 7.13 billion euros in 2025. The group also reiterated its 2026 targets for adjusted EBIT of about 7.5 billion euros and free cash flow before customer financing around 4.5 billion euros. Airbus is unlikely to make revisions one week after its business update.

 
 

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