Airbus SE reported a sharp rise in second-quarter earnings, with adjusted earnings before interest and taxes (EBIT) surging 54% year-over-year to €2.43 billion, exceeding analyst expectations. The European planemaker reaffirmed its full-year guidance, projecting adjusted EBIT of around €7.5 billion and free cash flow before customer financing of approximately €4.5 billion.

Key Financial Highlights

The company's adjusted EBIT jumped 54% to €2.43 billion (equivalent to $2.77 billion), while net profit more than doubled to €1.66 billion. According to a consensus of 20 analysts, the market had forecast adjusted EBIT of €2.19 billion and net profit of €1.59 billion, meaning the results beat expectations across the board.

Delivery Momentum and Production Targets

Airbus Chief Executive Officer Guillaume Faury stated on Wednesday that the robust delivery performance in the second quarter has bolstered management's confidence in the company's future operations. Despite ongoing supply chain bottlenecks limiting engine and equipment availability, the company remains on track to meet its full-year target of approximately 870 commercial aircraft deliveries. In the first half of the year, Airbus delivered a total of 351 aircraft, with a significant acceleration in delivery pace in recent months. Analysts believe the delivery recovery substantially increases the likelihood of achieving the annual target, alleviating earlier concerns that supply chain issues might force a reduction in delivery goals, as happened in 2022, 2024, and 2025.

Supply Chain Challenges and Strategic Moves

Persistent procurement difficulties in the supply chain have continued to hamper Airbus's manufacturing and delivery schedules. A shortage of Pratt & Whitney engines has forced a production cut for the popular A320 family of jets. Earlier this year, Airbus initiated legal proceedings to assert its contractual rights against Pratt & Whitney's parent company, Raytheon Technologies (RTX). Following the 2024 Alaska Airlines door plug blowout incident, Boeing faced intense regulatory scrutiny, and investors had hoped Airbus would seize additional market share. However, supply chain constraints have prevented the company from capitalizing on this opportunity. The stock price reflects this missed opportunity: Airbus shares have risen less than 6% year-to-date, while Boeing's management has focused on operational recovery, with its shares edging down about 2% over the same period. Boeing reported a second-quarter net loss of $428 million, narrowing from a $612 million loss a year earlier.

Long-Term Production Ramp-Up Plan

Last week, Airbus outlined a long-term production ramp-up plan: monthly production of the A220 narrow-body jet is targeted to reach 13 units by 2028; the A320 family's monthly output is expected to increase to 70-75 units by the end of next year; the A330's monthly production is set at 5 units by 2029; and the A350 wide-body's monthly output is slated to reach 12 units by 2028.

Revenue and Outlook

Second-quarter revenue rose 28% year-over-year to €20.53 billion, also surpassing the consensus estimate of €20.25 billion. Airbus reiterated its full-year guidance, targeting adjusted EBIT of approximately €7.5 billion and free cash flow before customer financing of about €4.5 billion for 2026.