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Airbus Group SE (FR:AIR)
:AIR
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Airbus Group SE (AIR) AI Stock Analysis

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FR:AIR

Airbus Group SE

(OTC:AIR)

Rating:71Outperform
Price Target:
€194.00
▲(8.83% Upside)
Airbus Group SE's strong financial performance and robust order backlog are key strengths, supporting future growth prospects. However, challenges in cash flow generation and supply chain issues present risks. The stock's valuation is relatively high, and technical indicators show a mixed trend. The company's ability to address operational challenges will be crucial for maintaining its growth trajectory.
Positive Factors
Dividend Policy
The company pledges to raise its dividend policy to a payout of 30-50% compared to the current 30-40%.
Financial Performance
Airbus Group reiterates its 2025 guide and confirms its production targets.
Production Progress
Underlying production progress gives increased confidence on the ramp, and shares have momentum as improving engine supplies drive higher deliveries.
Negative Factors
Delivery Performance
July deliveries at 67 are down 13% year over year.
Earnings Outlook
Q2 is widely expected to be weak, reflecting lower deliveries, unfavourable mix, and inventory build.
R&D Investment
R&D is to remain stable as a percentage of sales, leading to an increase in the absolute level, which is a key headwind to expanding EBIT performance over the mid-term.

Airbus Group SE (AIR) vs. iShares MSCI France ETF (EWQ)

Airbus Group 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 through multiple key streams. The primary source of income is the sale of commercial aircraft, which includes both new aircraft deliveries and services related to maintenance and support. The Defense and Space division contributes significantly through the sale of military aircraft, satellite systems, and space launch services. Additionally, the Helicopters division produces civil and military helicopters, further diversifying the revenue base. Airbus benefits from long-term contracts with various governments and defense agencies, ensuring a stable revenue flow. The company also engages in partnerships and collaborations with other aerospace firms and suppliers, enhancing its operational capabilities and market reach. Overall, the combination of aircraft sales, defense contracts, and support services forms the backbone of Airbus's financial success.

Airbus Group SE Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Airbus's strong commercial momentum and improved financial performance, with significant orders and increased revenue. However, challenges with engine supply and negative free cash flow represent notable issues. The sentiment is balanced with both positive growth indicators and operational challenges.
Q2-2025 Updates
Positive Updates
Strong Commercial Aircraft Orders
Airbus booked 494 gross orders in H1 2025, close to 500, with notable orders for the A220, A320, A330, and A350 models, bringing the backlog to 8,754 aircraft.
Increased Revenue and EBIT
H1 2025 revenue increased to EUR 29.6 billion, up 3% year-on-year. EBIT adjusted increased to EUR 2.2 billion from EUR 1.4 billion in H1 2024.
Defense & Space Performance
Order intake for Defense & Space stood at EUR 5.1 billion in H1 2025, with notable contracts including 23 German A400Ms and 2 additional NATO MRTT aircraft.
Helicopters Segment Growth
Helicopters delivered 138 units in H1 2025, with revenues increasing by 16% to EUR 3.7 billion, reflecting strong performance in both programs and services.
Negative Updates
Engine Supply Chain Challenges
Persistent tensions on engines for the A320 family resulted in 60 gliders at the end of June 2025, with challenges expected to peak over the summer.
Negative Free Cash Flow
Free cash flow before customer financing was negative EUR 1.6 billion in H1 2025, primarily due to working capital changes and inventory buildup.
Delays in Spirit AeroSystems Acquisition
The expected closing date for the acquisition of certain Spirit AeroSystems work packages has shifted into Q4 2025 due to ongoing regulatory approvals.
Company Guidance
In the Airbus H1 2025 earnings release call, the company maintained its guidance for 2025, projecting around 820 commercial aircraft deliveries, an EBIT adjusted of approximately EUR 7 billion, and a free cash flow before customer financing of about EUR 4.5 billion. The first half of 2025 saw Airbus deliver 306 commercial aircraft, with EBIT adjusted reaching EUR 2.2 billion and a free cash flow before customer financing at a negative EUR 1.6 billion. The backlog increased to 8,754 aircraft, with 494 gross orders during H1. Despite supply chain challenges, notably with engine shortages, the company remains committed to its production ramp-up targets, with new final assembly lines expected to come online next year. The financial performance was supported by strong demand, particularly in commercial aircraft, and significant progress in Defense & Space, which recorded an order intake of EUR 5.1 billion.

Airbus Group SE Financial Statement Overview

Summary
Airbus Group SE shows strong revenue growth and profitability with solid operational efficiency. The balance sheet is stable with moderate leverage, though cash flow generation has faced challenges. Improvement in cash flow metrics is needed for enhanced financial resilience.
Income Statement
85
Very Positive
Airbus Group SE has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 10.4%. The company maintains solid profitability with a gross profit margin of 15.36% and a net profit margin of 7.04%. EBIT and EBITDA margins are also healthy at 9.55% and 13.80%, respectively. These metrics indicate robust operational efficiency and profitability, positioning the company well within the Aerospace & Defense industry.
Balance Sheet
78
Positive
The balance sheet shows a moderate debt-to-equity ratio of 0.46, reflecting a stable financial structure. Return on equity is strong at 23.56%, indicating effective use of equity capital. The equity ratio stands at 17.87%, suggesting a balanced approach to financing through equity and debt. Overall, Airbus maintains a solid financial position with manageable leverage.
Cash Flow
70
Positive
Airbus has faced challenges in free cash flow growth, with a significant decline of 54.48% in the TTM period. However, the operating cash flow to net income ratio of 1.25 indicates that the company generates sufficient cash from operations to cover its net income. The free cash flow to net income ratio of 0.40 suggests some room for improvement in cash generation relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue70.02B69.23B65.45B58.76B52.15B49.91B
Gross Profit10.75B10.68B10.04B10.17B9.63B5.66B
EBITDA9.86B9.18B7.76B8.20B7.69B2.11B
Net Income4.93B4.23B3.79B4.25B4.21B-1.13B
Balance Sheet
Total Assets129.04B129.21B118.87B115.94B107.05B110.09B
Cash, Cash Equivalents and Short-Term Investments12.70B19.18B18.83B18.55B16.20B16.36B
Total Debt10.63B11.28B11.32B10.98B13.46B15.62B
Total Liabilities105.89B109.52B101.14B102.96B97.56B103.64B
Stockholders Equity23.06B19.61B17.70B12.95B9.47B6.45B
Cash Flow
Free Cash Flow2.48B3.93B3.35B3.92B2.79B-7.18B
Operating Cash Flow6.18B7.60B6.41B6.39B4.72B-5.42B
Investing Cash Flow-5.42B-6.72B-4.13B-3.07B-2.66B4.21B
Financing Cash Flow-2.87B-2.70B-1.42B-2.26B-2.32B6.74B

Airbus Group SE Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price178.26
Price Trends
50DMA
178.37
Negative
100DMA
166.05
Positive
200DMA
161.23
Positive
Market Momentum
MACD
0.78
Positive
RSI
47.78
Neutral
STOCH
25.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:AIR, the sentiment is Neutral. The current price of 178.26 is below the 20-day moving average (MA) of 178.93, below the 50-day MA of 178.37, and above the 200-day MA of 161.23, indicating a neutral trend. The MACD of 0.78 indicates Positive momentum. The RSI at 47.78 is Neutral, neither overbought nor oversold. The STOCH value of 25.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:AIR.

Airbus Group SE Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$142.38B28.8023.80%1.69%5.12%59.43%
64
Neutral
$10.96B16.358.89%1.96%2.68%-15.17%
€21.47B27.5112.93%
€120.02B27.8835.36%
€46.28B67.8114.51%2.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:AIR
Airbus Group SE
178.62
42.85
31.56%
GB:0IAX
Dassault Aviation
271.40
78.26
40.52%
GB:0IU8
SAFRAN SA
287.80
90.64
45.97%
GB:0IW5
Thales
226.00
77.12
51.80%
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.Date of analysis: Aug 06, 2025