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Airbus Group SE (FR:AIR)
:AIR
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Airbus Group SE
(OTC:AIR)
Rating:75Outperform
Price Target:
€192.00
▲(4.79%Upside)
Positive Factors
Business Strategy
Airbus is aiming to introduce the first zero-emission commercial aircraft by 2035, enhancing its competitive edge and aligning with the increasing global emphasis on environmental responsibility.
Financial Performance
Group financials point to solid EBIT growth with only slight headwinds from investment in the future.
Market Position
Airbus stands to strengthen its market share among Chinese carriers.
Negative Factors
Delivery Targets
Year-to-date deliveries are down 5%, with Airbus needing 16% year-over-year growth over the remainder of the year to reach its 820 delivery guide.
Production Challenges
Protracted supply chain bottlenecks may continue to hinder increases in production and delivery rates or lead to cost inflation.
Airbus Group SE (AIR) vs. iShares MSCI France ETF (EWQ)
Market Cap
$145.08B
Dividend Yield1.57%
Average Volume (3M)1.12M
Price to Earnings (P/E)32.7
Beta (1Y)1.07
Revenue Growth5.16%
EPS Growth12.89%
CountryFR
Employees157,894
SectorIndustrials
Sector Strength91
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.67
Shares Outstanding792,283,700
10 Day Avg. Volume981,587
30 Day Avg. Volume1,115,729
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)16.97
Price to Sales (P/S)0.00
P/FCF Ratio71.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$189.00Price Target Upside3.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Airbus Group SE Business Overview & Revenue Model
Company DescriptionAirbus Group SE, commonly known as Airbus, is a multinational aerospace corporation headquartered in Leiden, Netherlands. The company is a leader in the aerospace and defense industries, primarily involved in the design, manufacturing, and sale of commercial aircraft, helicopters, and military transport and fighter aircraft. Airbus operates through three main divisions: Airbus Commercial Aircraft, Airbus Helicopters, and Airbus Defence and Space, offering a wide range of products and services tailored to both civil and military markets worldwide.
How the Company Makes MoneyAirbus makes money primarily through the sale of commercial aircraft, which constitutes the largest portion of its revenue. The company designs, manufactures, and sells a variety of aircraft models to airlines and leasing companies around the world. In addition to aircraft sales, Airbus generates revenue from providing maintenance, repair, and overhaul (MRO) services, as well as from the sale of spare parts and customer support services. The Airbus Helicopters division contributes to revenue through the sale of civil and military helicopters, along with associated services. The Airbus Defence and Space division earns money by providing military transport aircraft, satellites, and other defense systems to government and commercial customers. Strategic partnerships and long-term contracts with governments and defense organizations also significantly contribute to its earnings.
Airbus Group SE Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 27.25%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted positive momentum in order intake across Defence and Space and helicopters, as well as revenue growth driven by strong services volumes. However, ongoing supply chain challenges, negative free cash flow, and the uncertainty surrounding global tariffs present significant hurdles. The sentiment is mixed as the highlights are counterbalanced by critical lowlights.Q1-2025 Updates
Positive Updates
Strong Order Intake in Defence and Space
Defence and Space reported a strong order intake of €2.6 billion in Q1, driven by multiple contracts, including with the French DGA for the A321XLR-based maritime patrol aircraft and the U.K. Ministry of Defence for radar satellites.
Helicopter Segment Growth
Airbus Helicopters booked 100 net orders in Q1 2025, up from 63 in Q1 2024. The introduction of the H140 model was well-received, with first orders and commitments announced at VERTICON 2025.
Record Order Backlog
Airbus reported a backlog of 8,726 aircraft at the end of March 2025, with net orders amounting to 204 aircraft after cancellations.
Revenue Growth
Overall revenues increased by 6% year-on-year to €13.5 billion, supported by higher services volumes and a favorable FX environment.
Negative Updates
Supply Chain and Delivery Challenges
Persisting supply chain issues, notably with Spirit AeroSystems and CFM engines, resulted in 17 'glider' aircraft without engines, impacting Q1 deliveries and causing a back-end loaded delivery profile for 2025.
Negative Free Cash Flow
Airbus reported a negative €0.3 billion free cash flow before customer financing, primarily due to planned inventory buildup and supply chain challenges.
Impact of Tariffs
The evolving global tariff environment is adding complexity and uncertainty, particularly affecting Airbus' operations in the U.S. and China, and creating potential financial exposure.
Company Guidance
During the Airbus Q1 2025 results call, CEO Guillaume Faury and CFO Thomas Toepfer highlighted several key metrics and guidance for the fiscal year. Airbus delivered 136 aircraft in Q1, with a backlog increasing to 8,726 units. EBIT adjusted was reported at €0.6 billion, reflecting strong performance in Defence and Space, while free cash flow before customer financing was negative €0.3 billion due to planned inventory buildup. Revenue rose to €13.5 billion, a 6% increase year-over-year, with R&D expenses slightly lower at €0.7 billion. The company maintained its full-year guidance, targeting around 820 commercial aircraft deliveries, an EBIT adjusted of approximately €7 billion, and free cash flow before customer financing of around €4.5 billion, excluding the impact of tariffs. The call also addressed ongoing supply chain challenges and the recent agreement with Spirit AeroSystems, aimed at stabilizing and enhancing operations for the A350 and A220 programs.Airbus Group SE Financial Statement Overview
Summary
Airbus Group SE exhibits a robust financial performance characterized by consistent revenue and profit growth, efficient cost management, and strong cash flow generation. The company maintains a balanced capital structure with moderate leverage and high return on equity. With continued focus on operational efficiency and cash management, Airbus is well-positioned for future growth in the aerospace and defense industry.Income Statement
Airbus Group SE demonstrates a strong financial performance with substantial revenue growth over the past years. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 15.18%, indicating efficient production and sales processes. The net profit margin is robust at 6.33%, showcasing profitability. Revenue growth rate from 2023 to TTM is around 6.88%, reflecting continued expansion. EBIT and EBITDA margins stand at 6.89% and 13.32% respectively, highlighting effective cost management and operational efficiency.84
Very Positive
Balance Sheet
The balance sheet of Airbus Group SE shows a solid financial position with a debt-to-equity ratio of approximately 0.51, indicating moderate leverage. The return on equity (ROE) is strong at about 20.14% for TTM, reflecting high profitability relative to shareholder equity. The equity ratio stands at 16.62%, showing a reasonable proportion of assets financed by shareholders. Overall, the balance sheet indicates stability with a focus on equity growth.79
Positive
Cash Flow
Airbus Group SE's cash flow statement shows healthy operations with a significant operating cash flow to net income ratio of around 2.08, suggesting strong cash generation from operations. The free cash flow growth rate from 2023 to TTM is 62.32%, demonstrating enhanced cash management and investment efficiency. The free cash flow to net income ratio is approximately 1.23, indicating effective conversion of profits into cash.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 69.94B | 69.23B | 65.45B | 58.76B | 52.15B | 49.91B |
| Gross Profit | 10.62B | 10.68B | 10.04B | 10.57B | 9.63B | 5.66B |
| EBITDA | 9.32B | 8.83B | 7.50B | 8.07B | 7.65B | 2.07B |
| Net Income | 4.43B | 4.23B | 3.79B | 4.25B | 4.21B | -1.17B |
Balance Sheet | ||||||
| Total Assets | 132.40B | 129.21B | 118.87B | 115.94B | 107.05B | 110.09B |
| Cash, Cash Equivalents and Short-Term Investments | 17.98B | 19.18B | 18.83B | 18.25B | 16.43B | 16.52B |
| Total Debt | 11.21B | 11.28B | 13.59B | 10.98B | 13.46B | 15.62B |
| Total Liabilities | 110.31B | 109.52B | 101.14B | 102.96B | 97.56B | 103.64B |
| Stockholders Equity | 22.00B | 19.61B | 17.70B | 12.95B | 9.47B | 6.45B |
Cash Flow | ||||||
| Free Cash Flow | 5.45B | 3.73B | 3.35B | 3.82B | 2.71B | -7.18B |
| Operating Cash Flow | 9.22B | 7.40B | 6.41B | 6.29B | 4.64B | -5.42B |
| Investing Cash Flow | -6.48B | -6.65B | -4.13B | -3.11B | -2.72B | 4.13B |
| Financing Cash Flow | -2.58B | -2.57B | -1.28B | -2.12B | -2.18B | 6.83B |
Airbus Group SE Technical Analysis
Positive
183.22
Price Trends
166.13
Positive
160.34
Positive
153.54
Positive
Market Momentum
5.05
Negative
71.48
Negative
92.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:AIR, the sentiment is Positive. The current price of 183.22 is above the 20-day moving average (MA) of 173.02, above the 50-day MA of 166.13, and above the 200-day MA of 153.54, indicating a bullish trend. The MACD of 5.05 indicates Negative momentum. The RSI at 71.48 is Negative, neither overbought nor oversold. The STOCH value of 92.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:AIR.
Airbus Group SE Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $145.08B | 32.67 | 21.75% | 1.57% | 5.16% | 12.89% | |
70 Outperform | €116.48B | 62.44 | -6.13% | 1.04% | 17.19% | -119.44% | |
70 Neutral | €23.64B | 25.71 | 15.30% | 1.56% | 29.86% | 37.44% | |
69 Neutral | €51.58B | 49.77 | 14.05% | 2.27% | 11.66% | 3.13% | |
58 Neutral | HK$14.16B | 4.43 | -3.01% | 7.12% | 3.67% | -54.16% |
* Industrials Sector Average
Performance Comparison
FR:AIR
Airbus Group SE
183.22
53.14
40.86%
FR:HO
Thales
251.00
100.38
66.65%
FR:AM
Dassault Aviation
302.80
136.27
81.83%
FR:SAF
SAFRAN SA
279.50
80.54
40.48%
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.