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Airbus Se (OTC) (EADSY)
OTHER OTC:EADSY
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Airbus SE
(OTC:EADSY)
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Rating:64Neutral
Price Target:
$59.00
▼(-0.97% Downside)
Action:ReiteratedDate:02/21/26
The score is driven primarily by solid financial recovery and constructive earnings-call fundamentals (strong backlog and improving profitability), tempered by clearly weak near-term technical momentum and a relatively high P/E. Near-term operational and integration risks highlighted in guidance further cap the overall score.
Positive Factors
Backlog & Orders
A record backlog worth €619bn provides multi-year revenue visibility and production leverage. This embedded demand cushions cyclicality, supports forward cash flow and capacity planning, and gives Airbus bargaining power with suppliers and customers during ramp-ups and pricing cycles.
Cash Generation
Material improvement in operating and free cash flow strengthens funding for capex, R&D and dividends without sole reliance on external financing. Durable cash conversion supports industrial investment for long-term rate ramps and cushions the company against cyclical downturns and supplier shocks.
Balance Sheet De‑risking
Substantial de‑leveraging since 2020 materially reduces refinancing and solvency risk in a cyclical aerospace sector. Stronger equity and liquidity positions increase resilience to execution slippages, enable strategic M&A or investments, and support sustained dividend policy under stress.
Negative Factors
Engine Supply Constraint
A durable production bottleneck from engine supplier shortfalls directly constrains deliveries, revenue recognition timing and unit economics. Prolonged engine visibility issues can force inventory builds, delay customer cash inflows, raise per-unit overheads and compress multi-year free cash flow.
Spirit AeroSystems Integration
Taking on Spirit work packages to secure production control creates sizable near-term cash and earnings drag plus incremental capex. Integration-related impairments and required investments raise execution risk and strain free cash flow while Airbus realigns industrial footprint for sustainable ramp rates.
Margin Pressure & Debt Step‑up
Slowing top-line momentum and margin compression reduce earnings power and internal funding capacity. Combined with a recent increase in total debt, this weakens financial flexibility and increases sensitivity to cyclical shocks, making long-term investment and payout policies more vulnerable.
Airbus SE (EADSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$171.40B
Dividend Yield1.47%
Average Volume (3M)103.23K
Price to Earnings (P/E)29.1
Beta (1Y)0.76
Revenue Growth9.15%
EPS Growth56.74%
CountryUS
Employees157,894
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.86
Shares Outstanding3,169,134,800
10 Day Avg. Volume103,602
30 Day Avg. Volume103,233
Financial Highlights & Ratios
PEG Ratio1.65
Price to Book (P/B)5.97
Price to Sales (P/S)2.21
P/FCF Ratio36.69
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue2.02
Enterprise Value/Gross Profit13.50
Enterprise Value/Ebitda15.60
Forecast
1Y Price Target
$63.00Price Target Upside5.74% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.21
Revenue Forecast (FY)$95.88B
Airbus SE Business Overview & Revenue Model
Company DescriptionAirbus SE engages in the designing, manufacturing, and delivering aerospace products, services, and solutions worldwide. It operates through three segments: Airbus, Airbus Helicopters, and Airbus Defence and Space. The Airbus segment develops, manufactures, markets, and sells commercial jet aircraft of approximately 100 seats; and regional turboprop aircraft and aircraft components, as well as provides aircraft conversion and related services. The Airbus Helicopters segment engages in the development, manufacturing, marketing, and sale of civil and military helicopters; and provision of helicopter related services. The Airbus Defence and Space segment designs, develops, delivers, and supports military aircraft, such as combat, mission, transport, tanker aircraft, and their associated services; and offers unmanned aerial systems. This segment also offers civil and defense space systems for telecommunications, earth observations, navigation, science, and orbital systems; missile systems; and space launcher systems, as well as services around data processing from platforms, secure communication, and cyber security. The company was formerly known as Airbus Group SE and changed its name to Airbus SE in April 2017. Airbus SE was incorporated in 1998 and is based in Leiden, the Netherlands.
How the Company Makes MoneyAirbus generates revenue primarily through the sale of commercial aircraft, which represents a significant portion of its income. The company also earns money from military aircraft sales, helicopters, and space-related services. Revenue is bolstered by ongoing maintenance, repair, and overhaul (MRO) services offered to customers, creating a steady stream of income post-sale. Furthermore, Airbus benefits from strategic partnerships and collaborations, such as those with various governments and defense agencies, which often involve long-term contracts for military and space projects. The company's robust supply chain and global presence also enhance its ability to capture diverse market opportunities.
Airbus SE Key Performance Indicators (KPIs)
Airbus SE Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Neutral
Balanced call: Airbus reported record financials, strong order intake and backlog, healthy margins and cash generation in 2025 and maintained mid‑term production targets. However, material near‑term operational risks were emphasized — primarily the Pratt & Whitney engine supply shortfall, the A320 panel quality issue, and cash/earnings headwinds from Spirit AeroSystems integration — which cloud 2026 execution and free cash flow. Management provided a 2026 guidance that shows resilience (targets: ~870 commercial deliveries, ~EUR 7.5 billion EBIT adjusted, ~EUR 4.5 billion FCF before customer financing) but highlighted several one‑time and structural risks to manage in the near term.Q4-2025 Updates
Positive Updates
Record financial performance
EBIT adjusted rose to EUR 7.1 billion (from EUR 5.4 billion in 2024, ~+31%), net income was a record EUR 5.2 billion, and adjusted EPS was EUR 6.89, supporting a proposed dividend of EUR 3.20 per share (~nearly 50% payout ratio).
Revenue growth and strong cash generation
Group revenues increased to EUR 73.4 billion (+6% year‑on‑year). Free cash flow before customer financing was EUR 4.6 billion (EUR 4.8 billion including customer financing). Net cash position was EUR 12.2 billion and liquidity around EUR 35 billion.
Deliveries meeting updated guidance
Airbus delivered 793 aircraft in 2025 (286 in Q4) to 91 customers, meeting its updated guidance despite operational challenges.
Robust order intake and backlog
Booked 1,000 gross commercial aircraft orders in 2025 (390 in Q4); net orders 889 after 111 cancellations. Backlog increased to a year‑end record of 8,754 aircraft and EUR 619 billion in value with book‑to‑bill >1 across businesses.
Commercial model and product momentum
A320 family booked 656 gross orders (backlog ~75% A321), A350 booked 193 gross orders and a record freighter year, A330 booked 102 gross orders; A321XLR continues to attract new operators.
Helicopters and Defense & Space strength
Helicopters: booked 536 net orders (vs 450 prior, +~19%), delivered 392 helicopters, revenues ~EUR 9.0 billion (+~13%) and EBIT adjusted EUR 925 million. Defense & Space: 2025 order intake EUR 17.7 billion (book‑to‑bill ~1.3), revenues EUR 13.4 billion (+11%) and EBIT EUR 798 million.
Strategic wins and contracts
Key defense successes: Spain C295s (18), Eurofighter orders (Germany 20, Italy options 8, Turkey 20), OneWeb contract for an additional 340 LEO satellites (complementing 100 from 2024) and other space/customer awards.
Industrial moves to secure production
Closed acquisition of certain Spirit AeroSystems work packages (8 Dec), taking control of production flow to derisk A220/A350 ramp‑up; investments planned to secure ramp‑up and expand footprint.
Hedge and FX management
USD coverage portfolio USD 75.8 billion at an average blended rate of $1.22; management states short‑term hedging largely protects 2026 and 2027 results versus spot USD weakness.
Mid‑term production targets maintained
Airbus maintains mid‑term rate targets: A320 family targeted to stabilize at rate 75 (now expected to reach 70–75/month by end‑2027), A350 rate 12 targeted in 2028, A330 rate 5 targeted in 2029, and A220 targeted to reach 13/month in 2028.
Negative Updates
Pratt & Whitney engine supply shortfall
Pratt & Whitney failed to commit to the number of engines needed for 2026 deliveries, forcing a reduced near‑term delivery trajectory. Airbus now expects to reach 70–75 A320 family aircraft/month by end‑2027 (versus prior faster ramp), with meaningful impact on 2026 deliveries, profitability and free cash flow.
A320 panel quality issue and delivery disruption
A320 panel quality problem in December materially pressured delivery capability in an already back‑end loaded year; Airbus expects residual operational impact primarily spread over H1 2026 and January/February deliveries were notably slow.
Spirit AeroSystems integration costs and impairments
Spirit‑related EBIT adjustment net negative EUR 188 million includes a EUR 738 million pre‑existing relationship settlement gain offset by a EUR 500 million impairment tied to the A220. Airbus flags a low‑triple‑digit EBIT headwind in 2026 (possible slight deterioration in 2027) and a high‑triple‑digit deterioration in free cash flow in 2026 due to late closing and required investments.
Tariffs, working capital and other one‑offs
EBIT adjustments included negative EUR 624 million from dollar working capital mismatch/balance‑sheet revaluation, negative EUR 105 million Defense & Space restructuring, EUR 73 million A400M charge and other costs totalling EUR 56 million, weighing on reported EBIT (reported EBIT EUR 6.1 billion).
Free cash flow risk and higher near‑term CapEx
Although 2025 FCF before customer financing was EUR 4.6 billion, Airbus expects a deterioration in 2026 FCF due to Spirit integration, inventory build to support ramp‑up, and potential need to build gliders if engine visibility does not improve; CapEx was EUR 4.0 billion in 2025 and is expected to increase in 2026.
Operational desynchronization and supply chain tensions
Management highlighted supply constraints causing desynchronization between production and delivery across the year; continued supplier tensions (engines, cabin interiors/seats) have created back‑loading and scheduling complexity.
Cancellations and order risk
111 cancellations reduced gross orders of 1,000 to net orders of 889; while largely anticipated and embedded in backlog valuation, they illustrate order volatility.
FX depreciation impact
U.S. dollar depreciation partially offset revenue growth and is a recurring headwind (management estimates ~EUR 0.02 per share FX headwind equating roughly to EUR 0.3 billion when modeling margins), though short‑term hedges provide protection for 2026/2027.
Company Guidance
Airbus guided for 2026 (before M&A and assuming no further trade, macro, traffic, supply‑chain or operational shocks and including current tariffs) to deliver around 870 commercial aircraft, achieve adjusted EBIT of about €7.5 billion and generate free cash flow before customer financing of roughly €4.5 billion; this builds on 2025’s results (793 deliveries, adjusted EBIT €7.1bn, FCF before customer financing €4.6bn and a year‑end backlog of 8,754 aircraft / €619bn). Management highlighted specific program ramps and assumptions: A320 family ramping to between 70–75 aircraft/month by end‑2027 and stabilizing at 75 (A220 targeted at ~13/month in 2028; A350 to reach rate 12 in 2028; A330 to reach rate 5 in 2029). They flagged material near‑term headwinds factored into guidance—a Spirit AeroSystems integration drag (low‑triple‑digit negative impact to adjusted EBIT in 2026, with a high‑triple‑digit cash outflow / CapEx effect spilling into 2026), a roughly €0.3bn FX headwind, and constrained engine supply from Pratt & Whitney that limits 2026 deliveries.Airbus SE Financial Statement Overview
Summary
Financials reflect a solid post-2020 recovery: revenue and profitability are materially higher than 2020, and cash generation has improved with rising operating cash flow and free cash flow. Offsetting this, 2025 saw slight top-line softness versus 2024, margin compression versus 2021–2022 highs, and a notable step-up in total debt in 2025.Income Statement
Airbus shows a solid post-2020 recovery with revenue rising from ~€49.9B (2020) to ~€70.5B (2025), but 2025 revenue dipped slightly versus 2024. Profitability has normalized after the 2020 loss, with net margin improving to ~7.1% in 2025, though margins have generally trended down from 2021–2022 highs (gross and EBITDA margins are lower in 2025 than 2021–2022). Overall, growth and earnings quality are good, but recent top-line softness and some margin compression temper the score.74
Positive
Balance Sheet
Leverage has improved materially versus 2020–2021 (debt relative to equity fell from ~2.42x in 2020 and ~1.42x in 2021 to ~0.62x in 2025), which is a meaningful de-risking. However, total debt increased in 2025 versus 2024 (about €16.3B vs €11.3B), and the business still carries a sizable debt load for cyclical aerospace conditions. Equity has strengthened significantly since 2020, supporting the balance sheet, but the 2025 step-up in debt keeps the profile from scoring higher.66
Positive
Cash Flow
Cash generation is healthy and improving: operating cash flow rose from ~€6.26B (2023) to ~€8.05B (2025), and free cash flow increased to ~€4.24B in 2025 with strong growth versus 2024. Free cash flow covers roughly half of net income in recent years (about 50–53% in 2023–2025), which is decent but not exceptional and suggests working-capital/production-cycle effects. The sharp negative operating and free cash flow in 2020 highlights cyclicality and execution risk, but the recent trend is constructive.72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 70.52B | 69.23B | 65.45B | 58.76B | 52.15B |
| Gross Profit | 10.53B | 10.68B | 10.04B | 10.57B | 9.63B |
| EBITDA | 8.04B | 9.18B | 7.77B | 8.20B | 7.71B |
| Net Income | 5.01B | 4.23B | 3.79B | 4.25B | 4.21B |
Balance Sheet | |||||
| Total Assets | 134.88B | 129.21B | 118.87B | 115.94B | 107.05B |
| Cash, Cash Equivalents and Short-Term Investments | 17.21B | 19.18B | 18.83B | 18.25B | 16.43B |
| Total Debt | 16.30B | 11.28B | 13.59B | 10.98B | 13.46B |
| Total Liabilities | 105.09B | 109.52B | 101.14B | 102.96B | 97.56B |
| Stockholders Equity | 26.09B | 19.61B | 17.70B | 12.95B | 9.47B |
Cash Flow | |||||
| Free Cash Flow | 4.24B | 3.73B | 3.20B | 3.82B | 2.71B |
| Operating Cash Flow | 8.05B | 7.40B | 6.25B | 6.29B | 4.64B |
| Investing Cash Flow | -4.79B | -6.65B | -4.13B | -3.11B | -2.72B |
| Financing Cash Flow | -3.41B | -2.57B | -1.28B | -2.12B | -2.18B |
Airbus SE Technical Analysis
Negative
59.58
Price Trends
58.37
Negative
58.79
Negative
55.21
Negative
Market Momentum
-1.17
Positive
40.26
Neutral
14.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EADSY, the sentiment is Negative. The current price of 59.58 is above the 20-day moving average (MA) of 56.12, above the 50-day MA of 58.37, and above the 200-day MA of 55.21, indicating a bearish trend. The MACD of -1.17 indicates Positive momentum. The RSI at 40.26 is Neutral, neither overbought nor oversold. The STOCH value of 14.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EADSY.
Airbus SE Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $271.97B | 40.83 | 10.74% | 1.44% | 8.79% | 39.63% | |
74 Outperform | $96.54B | 23.10 | 17.66% | 1.73% | 11.86% | 17.39% | |
74 Outperform | $151.41B | 30.63 | 76.87% | 2.77% | 2.88% | -35.15% | |
70 Outperform | $358.97B | 42.09 | 45.24% | 0.48% | -19.21% | 31.83% | |
64 Neutral | $171.40B | 29.15 | 23.44% | 1.47% | 9.15% | 56.74% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $178.69B | 120.01 | 289.00% | ― | 10.19% | -6.03% |
* Industrials Sector Average
EADSY
Airbus SE
54.38
9.41
20.92%
BA
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227.53
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33.79%
GD
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GE
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70.43%
LMT
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658.08
215.84
48.81%
RTX
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53.96%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.