Airbus Half-Year Results Reflect Resilience Amid Supply Hurdles

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Airbus SE has reported its Airbus Half-Year Results for 2025, showing strong commercial performance despite engine supply delays and free cash flow challenges.

The aerospace giant delivered 306 commercial aircraft by June 30, 2025. Gross orders hit 494 aircraft, up from 327 in the same period last year. Net orders stood at 402 after cancellations. At the end of June, Airbus had a commercial aircraft backlog of 8,754 units.

According to Chief Executive Officer Guillaume Faury, “Our H1 financials reflect transformation progress in our Defence and Space division and ongoing supply difficulties.” He noted that although production remained on schedule, engine shortages—especially on the A320 programme—delayed deliveries.

Revenues rose 3% to €29.6 billion from €28.8 billion in H1 2024. However, commercial aircraft revenues dipped 2% to €20.8 billion due to fewer deliveries. Airbus Helicopters performed well, with revenue up 16% to €3.7 billion. Defence and Space posted €5.8 billion in revenue, marking a 17% increase.

Airbus delivered 41 A220s, 232 A320s, 12 A330s, and 21 A350s during the period. Helicopter deliveries grew to 138 units, up from 124 in H1 2024.

Transitioning to profitability, Consolidated EBIT Adjusted—excluding one-off costs and restructuring—rose to €2.2 billion from €1.39 billion in H1 2024. The improvement stemmed from stable Defence and Space performance and reduced R&D expenses. EBIT reported stood at €1.6 billion, while reported earnings per share reached €1.93.

Despite a positive EBIT, free cash flow before customer financing was negative at €-1.61 billion, impacted by inventory build-up and aircraft awaiting engines. Net income rose to €1.53 billion, compared to €825 million a year ago.

Supply chain complications continue to impact ramp-up plans. While the A320 Family aims for 75 aircraft per month by 2027, the A330 will increase to 5 per month in 2029. The A350 targets rate 12 in 2028, and the A220 seeks rate 14 by 2026. However, suppliers like Spirit AeroSystems are causing pressure on ramp-up targets, especially for the A350 and A220 lines.

Meanwhile, Airbus is advancing its acquisition of specific Spirit AeroSystems work packages. Although the deal now aims for closure in Q4 2025, all parties remain committed to finalising it. Stabilisation costs related to this deal were part of the €-587 million in adjustments affecting reported EBIT.

On a positive note, Airbus Helicopters increased EBIT Adjusted to €249 million, supported by stronger services and more deliveries. Airbus Defence and Space also saw a significant rebound, reaching €265 million in EBIT Adjusted, after last year’s €-807 million. Improved volumes and profitability contributed to the turnaround.

Airbus continues close collaboration with OCCAR and partner nations on the A400M programme. A June agreement advanced seven deliveries for France and Spain. While production visibility has improved, Airbus remains cautious due to uncertain future order levels and technical qualification risks.

Self-financed R&D dropped slightly to €1.41 billion from €1.59 billion in H1 2024. The Company also reported a solid financial result of €490 million, driven by investment revaluations and financial instruments, partially offset by a weakening dollar.

Looking ahead, Airbus has kept its full-year guidance unchanged. It aims to deliver around 820 commercial aircraft in 2025, reach EBIT Adjusted of about €7 billion, and generate €4.5 billion in free cash flow before customer financing. These targets exclude tariff impacts and are based on the anticipated Q4 closure of the Spirit AeroSystems deal.

The Airbus Half-Year Results underscore the Company’s resilience in navigating market turbulence and complex global supply chains. While cash flow remains a concern, steady order intake and diversification through helicopters and defence operations provide a strong cushion.

In post-closing news, the Airbus Board of Directors will nominate BMW AG Chairman Oliver Zipse as a non-executive director in the 2026 Annual General Meeting. Zipse brings global experience in strategy and production, aligning with Airbus’ succession and leadership plans.

Chairman of the Board René Obermann said, “His wealth of global industry experience will be invaluable to the Company as we move forward.”

As the year progresses, Airbus faces a delicate balancing act—ramping up production while stabilising partnerships and maintaining profitability in a fast-evolving geopolitical and industrial landscape.