Airbus Stock: CEO Highlights Engine Shortages as Root of Delivery Backlog

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TLDR

  • Airbus CEO Guillaume Faury stated that there are ongoing supply chain issues, with engines being the most difficult components to acquire in 2025 and 2026
  • The company is dealing with a substantial backlog of undelivered aircraft even as customer demand remains robust
  • Defense orders are on the rise as governments increase military spending
  • Airbus intends to launch a new short-haul aircraft by the end of this decade to replace the A320 family, with service entry expected in the mid-2030s
  • EADSF shares fell 1.39% to $230.60 on Monday following the CEO’s remarks

Airbus shares dropped on Monday after CEO Guillaume Faury acknowledged the planemaker’s struggle with supply chain bottlenecks. EADSF closed 1.39% lower at $230.60.

AIR.DE Stock Card

Speaking at the World Governments Summit in Dubai on Tuesday, Faury identified aircraft engines as the most challenging components to obtain. The shortage has led to a backlog of planes awaiting delivery. Demand for aircraft hasn’t diminished, yet the company can’t deliver quickly enough.

The supply shortage has been especially severe in 2025 and 2026. Faury didn’t mince words; obtaining engines remains the main headache for production schedules.

However, there’s a silver lining. Defense orders are rising as governments allocate more funds to military equipment. This increase could offset the impact of slower commercial deliveries. The shift in spending priorities is advantageous.

Defense Boost and Chinese Competition

Faury confirmed an increase in demand for defense products. Countries are increasing military budgets, and Airbus is poised to benefit from this trend. The defense sector could help balance revenues while commercial deliveries are slow.

The CEO also addressed Chinese competitors such as Comac. He takes them seriously but isn’t overly concerned. Faury believes the market is large enough for new entrants. With extremely high demand, there’s room for everyone at present.

Airbus isn’t idle. The company intends to launch a new short-haul aircraft by the end of this decade. This aircraft will eventually replace the A320 family, with service entry expected in the mid-2030s.

Earnings on the Horizon

Investors will gain a clearer view when Airbus releases fourth-quarter results on February 19. Wall Street anticipates revenues of $31.73 billion for Q4 2025, representing a 9% increase from the previous year.

Analysts project earnings per share of $2.90 for the quarter, a 5% increase from the same period in 2024. The figures indicate steady growth despite supply challenges.

The stock is currently at $230.60 following Monday’s drop. Analysts maintain a Moderate Buy rating on EADSF. Nine analysts recommend buying the stock, while four advise holding.

The average price target is $269.77, implying a potential upside of nearly 17% from current levels. Analysts remain optimistic about Airbus’s prospects.

Faury’s remarks depict a company navigating competing pressures. Strong demand confronts persistent supply issues. Defense spending increases while commercial deliveries slow. The backlog grows as customers await planes.

The engine shortage has no quick solution. Suppliers can’t simply ramp up production. Airbus will continue grappling with this constraint at least until 2026.

The company faces Chinese manufacturers entering the market. Comac and others are building capabilities. Faury acknowledges the competition but sees sufficient demand for everyone.

Faury spoke at the World Governments Summit in Dubai on Tuesday, outlining the challenges and opportunities facing the European aerospace giant.