Airbus Q1 Results: Profit Halves as Deliveries Slow
Airbus Q1 results showed profits fell as deliveries slowed and engine shortages hit production, keeping focus on execution risk and cash recovery.
KEY TAKEAWAYS
- Adjusted EBIT fell 52.0% to €300 million following lower deliveries and supplier constraints.
- Deliveries dropped to 114 aircraft, down 16.0% from 136, slowing the A320 production ramp.
- Airbus reaffirmed FY targets while Q1 free cash flow before customer financing was negative €2.5 billion.
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Airbus SE reported first-quarter 2026 results on April 28, showing profits halved amid slower deliveries caused by Pratt & Whitney engine shortages and component-quality issues. Despite weak cash flow, the company maintained its full-year delivery and profit targets.
Profits Decline as Deliveries Drop
Airbus posted adjusted EBIT of €300 million for Q1 2026, down 52% from €624 million a year earlier. Revenue fell 7% to €12.7 billion from about €13.5 billion. The company delivered 114 commercial aircraft, a 16% decline from 136 in the same period last year. Deliveries included 19 A220s, 81 A320-family jets, three A330s, and 11 A350s.
The commercial aircraft segment recorded adjusted EBIT of €81 million. Defence and Space revenues rose 7% year over year, with adjusted EBIT reaching €130 million. Airbus cited production and delivery constraints, including the Pratt & Whitney engine shortage affecting the A320neo, panel-quality defects, shortages of seats and interiors, and about 20 deliveries to China delayed for administrative reasons. CEO Guillaume Faury said, “In commercial aircraft, we continue to ramp up and produce as per our plan while navigating the shortage of Pratt & Whitney engines.”
Guidance, Orders, and Cash Flow
Free cash flow before customer financing was negative €2.5 billion in the quarter. Airbus reaffirmed its 2026 targets, aiming for roughly 870 aircraft deliveries, adjusted EBIT near €7.5 billion, and free cash flow before customer financing around €4.5 billion. The company maintained production-rate plans of 70–75 A320-family jets per month by the end of 2027, with A220 and A350 production rates at 13 and 12 per month, respectively, in 2028.
These targets assume resolution of the engine supply shortfall. Negotiations with Pratt & Whitney have shown no progress since February 2026. Airbus is also monitoring potential impacts from the rapidly evolving situation in the Middle East.
In Q1, Airbus received 408 gross commercial orders and 398 net orders, leaving a backlog of 9,037 aircraft at quarter-end. CFO Thomas Toepfer said deliveries are expected to return to schedule by the end of June, marking a key milestone for the company to recover from the quarter’s operational challenges.
