Airbus expects 7% delivery growth in 2025 amid delays and charges
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Airbus forecasts higher deliveries despite production pressures
Airbus (air) expects to deliver 820 jets in 2025, reflecting a 7% increase from 2024, despite ongoing supply chain disruptions and program delays. The company delayed the a350 freighter launch by a year to h2 2027 and reported a €300 million charge for its space division, bringing total provisions on loss-making satellite projects to nearly €2 billion over two years.
Supply chain challenges and industrial delays persist
Airbus continues to struggle with production setbacks, particularly in the a320 and a350 families, due to delays from U.S. supplier spirit aerosystems (SPR). Spirit, which is in the process of being split between Airbus and Boeing (ba), has been a key bottleneck in ramping up production. Despite short-term pressures, Airbus maintained all its medium-term output targets.
Defense and space units under pressure
The a400m military aircraft program remains a weak spot, with new €121 million in charges as slow exports and order uncertainty cast doubt on future production. Europe’s potential increase in defense spending, driven by Donald Trump’s push for NATO countries to boost their contributions, could determine whether airbus secures new orders to keep the program alive.
Financial outlook and strategic moves
Airbus reported €5.35 billion in adjusted operating income for 2024, an 8% decline, but in line with expectations. It expects €7 billion in operating income for 2025, factoring in the integration of spirit aerosystems plants but excluding potential trade tariffs. The company plans to maintain strong free cash flow of around €4.5 billion and increased its dividend to €2 per share, plus a special €1 dividend.
Trading outlook
Airbus shares (air) fell 2.36% following the earnings announcement, reflecting investor concerns over delays, charges, and supply chain risks. Key support levels are near €130, while resistance is at €140-145, where sentiment could improve if defense orders materialize or supply chain disruptions ease. Any new tariff threats from the U.S. could introduce additional volatility.
Airbus (air) expects to deliver 820 jets in 2025, reflecting a 7% increase from 2024, despite ongoing supply chain disruptions and program delays. The company delayed the a350 freighter launch by a year to h2 2027 and reported a €300 million charge for its space division, bringing total provisions on loss-making satellite projects to nearly €2 billion over two years.
Supply chain challenges and industrial delays persist
Airbus continues to struggle with production setbacks, particularly in the a320 and a350 families, due to delays from U.S. supplier spirit aerosystems (SPR). Spirit, which is in the process of being split between Airbus and Boeing (ba), has been a key bottleneck in ramping up production. Despite short-term pressures, Airbus maintained all its medium-term output targets.
Defense and space units under pressure
The a400m military aircraft program remains a weak spot, with new €121 million in charges as slow exports and order uncertainty cast doubt on future production. Europe’s potential increase in defense spending, driven by Donald Trump’s push for NATO countries to boost their contributions, could determine whether airbus secures new orders to keep the program alive.
Financial outlook and strategic moves
Airbus reported €5.35 billion in adjusted operating income for 2024, an 8% decline, but in line with expectations. It expects €7 billion in operating income for 2025, factoring in the integration of spirit aerosystems plants but excluding potential trade tariffs. The company plans to maintain strong free cash flow of around €4.5 billion and increased its dividend to €2 per share, plus a special €1 dividend.
Trading outlook
Airbus shares (air) fell 2.36% following the earnings announcement, reflecting investor concerns over delays, charges, and supply chain risks. Key support levels are near €130, while resistance is at €140-145, where sentiment could improve if defense orders materialize or supply chain disruptions ease. Any new tariff threats from the U.S. could introduce additional volatility.