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1. Company Snapshot

1.a. Company Description

Airbus SE engages in the designing, manufacturing, and delivering aerospace products, services, and solutions worldwide.It operates through three segments: Airbus, Airbus Helicopters, and Airbus Defence and Space.The Airbus segment develops, manufactures, markets, and sells commercial jet aircraft of approximately 100 seats; and regional turboprop aircraft and aircraft components, as well as provides aircraft conversion and related services.


The Airbus Helicopters segment engages in the development, manufacturing, marketing, and sale of civil and military helicopters; and provision of helicopter related services.The Airbus Defence and Space segment designs, develops, delivers, and supports military aircraft, such as combat, mission, transport, tanker aircraft, and their associated services; and offers unmanned aerial systems.This segment also offers civil and defense space systems for telecommunications, earth observations, navigation, science, and orbital systems; missile systems; and space launcher systems, as well as services around data processing from platforms, secure communication, and cyber security.


The company was formerly known as Airbus Group SE and changed its name to Airbus SE in April 2017.Airbus SE was incorporated in 1998 and is based in Leiden, the Netherlands.

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1.b. Last Insights on AIR

Airbus SE faces challenges due to engine shortages from Pratt & Whitney, impacting production of its best-selling A320 jets. The company reduced its output target, citing Pratt & Whitney's failure to meet contractual commitments. This dispute led to a decline in investor confidence. Additionally, Airbus's recent earnings report showed a 6.8% decline in shares after the company announced lower-than-expected jet deliveries and operating profit for 2026. The company's growth prospects are also affected by supply chain issues and rising costs.

1.c. Company Highlights

2. Airbus' 2025 Earnings: Strong Performance Amidst Supply Chain Challenges

Airbus reported a robust financial performance in 2025, with revenues reaching €73.4 billion, up 6% year-on-year, and an EBIT adjusted of €7.1 billion. The company's net income was €5.2 billion, resulting in an earnings per share (EPS) of €2.91, beating analyst estimates of €2.44. The strong performance was driven by commercial aircraft deliveries, as well as the Helicopter and Defense & Space divisions. Airbus' financials demonstrate a solid foundation, with a net cash position of €12.2 billion and liquidity of around €35 billion.

Publication Date: Feb -20

📋 Highlights
  • Record Year-End Backlog:: Airbus closed 2025 with a backlog of 8,754 aircraft and €619 billion in total backlog value, driven by strong order intake across all businesses.
  • Financial Growth:: Revenues rose 6% to €73.4 billion, EBIT adjusted reached €7.1 billion, and net income hit €5.2 billion, supporting a €3.2/share dividend proposal.
  • Delivery Performance:: Delivered 793 aircraft in 2025 (700 single-aisle, 93 widebody), with a Q4 surge of 286 aircraft, meeting updated guidance.
  • Production Ramp-Up Challenges:: Supply chain constraints, particularly with Pratt & Whitney engines, will delay 2026 deliveries, though 70-75 aircraft/month target remains for 2027.
  • Divisional Strength:: Helicopters (EBIT adjusted €925M, +13% revenue) and Defense & Space (€13.4B revenue, +11%) outperformed, while A320 family secured 656 gross orders in 2025.

Segmental Performance

The commercial aircraft segment delivered 793 aircraft, meeting the updated guidance, with a strong fourth-quarter performance of 286 aircraft delivered. The A320 family continued to be a significant contributor, with 656 gross orders. The Helicopter segment delivered 392 units, with revenues increasing 13% to €9 billion, while the Defense & Space segment saw revenues rise 11% to €13.4 billion. The company's book-to-bill ratio remained above 1 for all businesses, with a backlog of €619 billion.

Guidance and Outlook

Airbus expects to reach a production rate of 70-75 aircraft per month by the end of 2027, stabilizing at 75 thereafter. However, the company faces supply chain tensions, particularly with engine maker Pratt & Whitney, which is expected to impact 2026 deliveries. Airbus has guided for 870 commercial aircraft deliveries in 2026, with EBIT adjusted around €7.5 billion and free cash flow before customer financing of around €4.5 billion. The company's CapEx is expected to continue to increase in 2026 to support the ramp-up and integration of Spirit AeroSystems work packages.

Valuation and Metrics

Airbus' current valuation metrics indicate a P/E Ratio of 28.27, P/B Ratio of 5.66, and P/S Ratio of 2.01. The company's ROE stands at 21.22%, and ROIC at 5.33%. With a dividend yield of 1.07%, Airbus offers a relatively attractive return for investors. Analysts estimate revenue growth at 12.0% for the next year, indicating a positive outlook for the company.

Operational Challenges and Mitigation

Airbus is addressing operational challenges, including engine shortages from Pratt & Whitney, by working closely with stakeholders to enable the ramp-up trajectory. The company is also reviewing its hiring plans and may adjust them due to lower volumes in 2026. Additionally, Airbus is exploring mitigation actions to address potential long-term dollar depreciation, including efficiency improvements and balancing dollar revenue and euro costs.

3. NewsRoom

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Boeing Regains Its Swagger in Heated Rivalry with Airbus

Mar -01

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FTAI Aviation (FTAI) Is Up 5.5% After Raising Dividend And Updating 2026 EBITDA Outlook – What's Changed

Feb -28

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UK aerospace giant exploits defence spending boom to build killer drones

Feb -27

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Delta Air Lines Balances Major Fleet Orders With Winter Disruption Risks

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.90%)

6. Segments

Airbus (Includes Holding Function and Bank Activities)

Expected Growth: 4.5%

Airbus SE's holding and banking activities are expected to grow driven by increasing demand for commercial aircraft, expansion in digital services, and growing revenue from helicopter and space segments.

Airbus Helicopters

Expected Growth: 5.4%

Airbus Helicopters will benefit from a growing demand for civil helicopters, driven by increasing use in emergency medical services, search and rescue, and corporate transportation.

Airbus Defence and Space

Expected Growth: 6.2%

Airbus Defence and Space’s military aircraft and space systems benefit from government investments in defence and space exploration, driving growth in a market led by increasing global security concerns and the need for advanced technologies.

Eliminations

Expected Growth: 4.4%

Airbus SE Eliminations removes consolidation effects, driven by increasing demand for commercial aircraft and growing aftermarket services, with a focus on digitalization and sustainability.

7. Detailed Products

A320 Family

A series of short- to medium-haul commercial passenger airliners

A330 Family

A series of wide-body, twin-engine, commercial airliners

A350 XWB

A series of wide-body, twin-engine, commercial airliners

A380

A double-deck, wide-body, four-engine commercial airliner

H125

A single-engine, light helicopter

H130

A single-engine, light helicopter

H145

A twin-engine, light helicopter

H160

A twin-engine, medium helicopter

C295

A twin-turboprop, military transport aircraft

A330 MRTT

A multi-role tanker transport, aerial refueling aircraft

Eurofighter Typhoon

A twin-engine, multirole fighter jet

Space Systems

A range of satellites, launch vehicles, and ground systems

UAVs (Unmanned Aerial Vehicles)

A range of unmanned aerial vehicles for military and civilian use

Cybersecurity Solutions

A range of cybersecurity solutions for governments and enterprises

8. Airbus SE's Porter Forces

Forces Ranking

Threat Of Substitutes

Airbus faces moderate threat from substitutes, as customers have limited alternatives to commercial aircraft. However, the increasing popularity of business jets and private aviation could pose a threat to Airbus's market share.

Bargaining Power Of Customers

Airbus's customers, primarily airlines, have limited bargaining power due to the high barriers to entry and the complexity of the aviation industry. This gives Airbus an upper hand in negotiations.

Bargaining Power Of Suppliers

Airbus relies on a diverse supplier base, which reduces the bargaining power of individual suppliers. However, key suppliers like engine manufacturers may still exert some influence over Airbus.

Threat Of New Entrants

The barriers to entry in the commercial aircraft industry are extremely high, making it difficult for new entrants to challenge Airbus's market position.

Intensity Of Rivalry

The commercial aircraft industry is highly competitive, with Airbus facing intense rivalry from Boeing. The two companies engage in frequent price wars, and the market is highly sensitive to price changes.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.80%
Debt Cost 7.45%
Equity Weight 59.20%
Equity Cost 11.69%
WACC 9.96%
Leverage 68.92%

11. Quality Control: Airbus SE passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Safran

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Value: 1.1

Growth: 4.1

Quality: 7.3

Yield: 0.6

Momentum: 8.5

Volatility: 8.3

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A-Score: 5.0/10

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Growth: 5.0

Quality: 4.2

Yield: 3.1

Momentum: 10.0

Volatility: 5.7

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Airbus

A-Score: 5.0/10

Value: 1.9

Growth: 5.6

Quality: 5.2

Yield: 1.2

Momentum: 8.5

Volatility: 7.3

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Value: 2.4

Growth: 6.8

Quality: 4.9

Yield: 5.0

Momentum: 4.5

Volatility: 6.0

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Rheinmetall

A-Score: 4.9/10

Value: 0.2

Growth: 8.6

Quality: 6.2

Yield: 2.5

Momentum: 10.0

Volatility: 2.0

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Rolls-Royce

A-Score: 4.8/10

Value: 1.9

Growth: 6.4

Quality: 6.6

Yield: 0.6

Momentum: 9.5

Volatility: 3.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

175.76$

Current Price

175.76$

Potential

-0.00%

Expected Cash-Flows