Airbus reports solid first quarter 2025 amid supply chain challenges and defense growth

May 1, 2025 in Business, Companies, Travel & Tourism by Editor

European airframer Airbus SE has reported a steady start to 2025, showcasing resilience across its core business segments despite ongoing supply chain pressures and a delivery backlog weighted towards later in the year. The aerospace giant posted €13.5 billion in consolidated revenues for the first quarter ended 31 March 2025, up 6pc from Q1 2024, driven by buoyancy in its Defence and Space and Helicopters divisions.

Chief Executive Officer Guillaume Faury maintained Airbus’ full-year guidance saying, “We are ramping up production in line with our plan, though deliveries will be backloaded due to supply chain challenges. We maintain our 2025 guidance and continue to closely monitor tariffs, which remain uncertain.”

Airbus delivered 136 commercial aircraft in Q1 (down from 142 a year earlier), including 17 A220s, 106 A320s, 4 A330s and 9 A350s. Despite the dip in deliveries, revenues from the commercial aircraft segment rose 4pc to €9.5 billion, aided by a favorable foreign exchange environment.

Gross commercial aircraft orders surged to 280 units (Q1 2024: 170), with 204 net orders, reflecting continued market demand. The order backlog rose slightly to 8,726 aircraft. The A320 Family remains a key driver, with Airbus still targeting a ramp-up to 75 units per month by 2027. However, bottlenecks, particularly with supplier Spirit AeroSystems, continue to affect A350 and A220 production.

Airbus Helicopters delivered 51 units (Q1 2024: 50), lifting revenues by 10pc to €1.6 billion. EBIT Adjusted for the division grew to €78 million, supported by strong programme execution and services growth. The quarter also marked the introduction of the H140 multi-mission helicopter, which has already secured early orders.

Airbus Defence and Space saw an 11pc revenue increase to €2.7 billion, with EBIT Adjusted swinging to €77 million from a €9 million loss a year earlier. Net order intake rose sharply to €2.6 billion. The unit continues to benefit from rising European defence spending and demand for its Air Power and Connected Intelligence offerings.

Airbus reported a net income of €793 million for the quarter, a 33% increase from the prior year, translating to earnings per share of €1.01. EBIT Adjusted rose 8% to €624 million, while reported EBIT declined 22% to €473 million, impacted by one-time charges including a €105 million cost related to a Defence and Space workforce adaptation plan.

Free cash flow before customer financing improved significantly to €-310 million from €-1.79 billion in Q1 2024, reflecting an expected inventory buildup ahead of higher production volumes later in the year. Net cash stood at €11.0 billion as of March 31, down slightly from year-end 2024.

Airbus reaffirmed its 2025 guidance, excluding the impact of tariffs and assuming no major disruptions to global trade or operations. The company targets around:

• 820 commercial aircraft deliveries
• €7.0 billion in EBIT Adjusted
• €4.5 billion in free cash flow before customer financing

The guidance also incorporates the anticipated integration of selected Spirit AeroSystems work packages, with closing expected in Q3 2025.