Airbus Production Guidance Falls on Engine Shortage

Airbus (EADSF, EADSY) cut its 2026 production guidance on Feb. 19, 2026, citing Pratt & Whitney engine shortages that will slow the A320 ramp-up and reduce its adjusted EBIT outlook for the year.

2026 Guidance and Financial Results

Airbus set its 2026 commercial aircraft delivery target at approximately 870 units, about 4% below a Visible Alpha analyst consensus of 907, the company said in its full-year results and guidance release. The planemaker delivered 793 aircraft in 2025. Airbus attributed the shortfall to supplier constraints rather than weakening airline demand.

For 2025, Airbus reported revenue of €73.4 billion, up 6.0% year-over-year, adjusted operating profit of €7.1 billion, up 33.0%, and net profit of €5.2 billion, up 23.0%. Management described the results as evidence of strong demand as carriers modernize fleets for fuel efficiency.

In the fourth quarter, Airbus recorded adjusted operating profit of €3.0 billion, a 17.0% increase year-over-year, on revenue of €26.0 billion ($30.6 billion), up 5.0%. Executives noted the quarterly profitability despite ongoing supplier challenges expected to pressure next year’s performance.

Looking ahead, Airbus guided adjusted EBIT for 2026 at about €7.5 billion and projected free cash flow before customer financing of roughly €4.5 billion. It also proposed a 2025 dividend of €3.20 per share. The guidance falls short of market expectations above €8.0 billion and assumes no further disruptions to global trade, air traffic, supply chains, or operations.

Airbus reported gross orders of 1,000 commercial aircraft in 2025 and net orders of 889 after cancellations. The company said demand remains strong and its backlog secures production for several years, providing a cushion against near-term delivery shifts.

Engine Shortage Slows A320 Production Ramp

Airbus revised its A320 production rate target to 70–75 aircraft per month by the end of 2026, up from the current rate of about 60 per month. The company expects to stabilize production at 75 per month beyond 2027. Earlier timetables to reach 75 monthly deliveries were pushed back, the CEO said in the full-year briefing. Airbus maintained plans for the A220 at 12 aircraft per month in 2026, rising to 13 per month in 2028. It also set longer-term targets of five A330 aircraft per month in 2029 and 12 A350 aircraft per month in 2028.

The primary constraint on the A320 ramp is a shortage of Pratt & Whitney engines, which supply about 40% of A320neo engines. CFM International supplies the remaining 60% and has not committed to additional volumes for 2026. Airbus cited durability problems with the PW1100G geared-fan engine and a backlog of in-service maintenance work that suppliers have prioritized over new-build deliveries. The company completed integration of Spirit AeroSystems facilities in 2025 to strengthen supplier control.

Airbus has initiated a dispute clause in its contract with Pratt & Whitney over engine volume commitments. Volume agreements for 2026 and 2027 remain unresolved, although such contracts are typically set 18 months in advance. CEO Guillaume Faury said, "Pratt & Whitney's failure to commit to the number of engines ordered by Airbus is negatively impacting this year's guidance and the ramp-up trajectory." He added that Airbus does not expect a quick resolution.

The guidance revision comes as Boeing delivered 600 commercial aircraft in 2025 and, for the first time since 2018, posted more net orders than Airbus, tightening the delivery gap. Some analysts view the disruption as a temporary setback to Airbus’s ramp-up, with its longer-term trajectory remaining intact.