Airbus Q1 2026: Lower deliveries weigh on earnings despite strong orders

Airbus reported a softer first quarter for 2026, with lower aircraft deliveries impacting revenues and profitability, even as order intake and defence activity remained strong.

The group delivered 114 commercial aircraft, down from 136 a year earlier, contributing to a 7% decline in revenues to €12.7 billion. Adjusted operating profit (EBIT) fell to €300 million, while reported net income reached €586 million.

Deliveries and supply chain pressures

Airbus said performance was affected by reduced output in its commercial aircraft division, partly due to ongoing engine supply constraints from Pratt & Whitney. Commercial aircraft revenues dropped 11% to €8.4 billion.

Despite this, the manufacturer continues to push ahead with production ramp-ups:

• A320 Family targeting 70–75 aircraft per month by 2027
• A220 aiming for 13 per month by 2028
• A350 targeting 12 per month by 2028

Strong order momentum and backlog

Demand remained robust, with 398 net aircraft orders in the quarter, nearly doubling year-on-year. Airbus ended March with a record backlog of 9,037 commercial aircraft, underlining long-term demand resilience.

Defence and helicopters provide support

Airbus’ defence division delivered a strong performance, with revenues rising 7% to €2.8 billion and improved profitability. Helicopters also saw stable revenues and increased deliveries, though margins were slightly impacted by higher R&D spending.

Cash flow under pressure

Free cash flow before customer financing was negative €2.5 billion, reflecting lower deliveries and inventory build-up tied to production ramp-ups. The company maintained a solid liquidity position, with €25.2 billion in gross cash.

Outlook unchanged

CEO Guillaume Faury said the operating environment remains “dynamic and complex,” particularly amid geopolitical uncertainty in the Middle East. However, Airbus maintained its full-year guidance, targeting:

• Around 870 aircraft deliveries
• €7.5 billion EBIT (adjusted)
• €4.5 billion free cash flow

The results reflect a transitional phase for Airbus, balancing short-term production constraints with long-term growth driven by strong global demand for aircraft.