Airbus (AIR) Stock: Profits Halved, Deliveries Decline in Q1 2026

TLDR

• Airbus’s Q1 adjusted operating profit plunged 52% to €300M, compared to €624M a year earlier
• Revenue decreased 7% to €12.65B, yet surpassed analyst predictions
• Merely 114 aircraft were delivered in Q1, a drop from 136 last year and trailing Boeing’s 143
• Ongoing engine shortages from supplier Pratt & Whitney continue to constrain production
• The full-year target of 870 aircraft deliveries remains intact

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(SeaPRwire) –   Airbus reported a challenging first quarter, as its adjusted operating profit fell by half to €300 million from €624 million in the first quarter of 2025. Revenue totaled €12.65 billion, marking a 7% decrease from the prior-year period.

AIRBUS Q1 EARNINGS:

REVENUE EUR 12,651 MILLION || Q1 ADJUSTED EBIT EUR 300 MILLION || Q1 EBIT EUR 224 MILLION || Q1 ADJUSTED FREE CASH FLOW EUR -2,485 MILLION || Q1 EPS EUR 0.74

— First Squawk (@FirstSquawk) April 28, 2026

Although profits were below expectations, revenue exceeded analyst forecasts. Based on company-compiled consensus figures, analysts had anticipated revenue of €12.39 billion and adjusted operating profit of €348 million. Earnings per share reached 74 euro cents, significantly higher than the forecast of 44 euro cents.

Airbus SE, AIR.DE

The core issue remains aircraft deliveries. Airbus transferred just 114 commercial aircraft to customers in Q1, a 16% reduction from 136 in the same quarter last year. This figure also lagged behind competitor Boeing, which delivered 143 aircraft in the period—a stark contrast considering Boeing’s recent operational challenges.

The reason is a persistent one: engine supply constraints. Pratt & Whitney, a crucial U.S. supplier, has experienced delays in engine shipments, limiting the rate at which Airbus can complete and deliver aircraft. The dispute has escalated legally, with Reuters reporting in March that Airbus is seeking potential compensation from the supplier.

Deliveries Remain the Central Problem

Airbus maintained its full-year outlook, still aiming for 870 commercial aircraft deliveries in 2026. The company also reiterated its production goal of reaching 70 to 75 A320-family jets per month by the end of 2027—a target that was already reduced in February from an initial aim of 75 per month by the beginning of that year.

Achieving the annual target from a base of 114 deliveries this quarter will necessitate a significant production increase in the coming quarters. Jefferies analysts stated plainly before the earnings release: “The pace at which Airbus can translate this into higher deliveries has become the key swing factor for earnings and valuation.”

Sales in the commercial aircraft division dropped 11% during the quarter. The helicopter business was unchanged from the previous year, while the defence and space segment increased by 7%. The defence unit provided a rare positive note, recording an adjusted core profit of €130 million, exceeding the analyst estimate of €111 million.

Investor Sentiment Shifting

Analyst outlook on Airbus has become less optimistic since the beginning of 2026, in part because Boeing is demonstrating signs of a rebound. Boeing posted a smaller-than-anticipated loss in Q1, showing progress in its commercial aircraft division as it navigates a lengthy recovery from its own quality and manufacturing issues.

Boeing CEO Kelly Ortberg stated that customer demand remains robust, with minimal effect from trade disruptions in the Middle East. UBS observed earlier this month that replacement demand is sufficiently strong to bolster Airbus even if fuel prices remain high.

A decline in the U.S. dollar’s value also negatively impacted Airbus’s quarterly results. Since a large portion of commercial aviation sales are priced in dollars, currency fluctuations can depress earnings reported in euros.

Airbus continues to secure strong orders and holds a substantial backlog. However, for current investors, the primary focus is on execution and delivery rates—and the first quarter demonstrated that the disparity between orders and actual production remains wide.

The adjusted core profit of €130 million from the defence and space division, beating the €111 million estimate, represented the quarter’s most definite positive surprise.