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Airbus Group (FR:AIR)
:AIR
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Airbus Group SE
(OTC:AIR)
Rating:71Outperform
Price Target:
€194.00
▲(10.73% Upside)
Positive Factors
Financial Performance
Airbus posted a solid 8% beat driven by Defence & Space, showing solid underlying margin recovery.
Production Progress
Underlying production progress gives increased confidence on the ramp, and shares have momentum as improving engine supplies drive higher deliveries.
Negative Factors
Commercial Performance
The Commercial performance is considered a bit soft, with stronger volume/mix headwinds than hoped.
Deliveries
Q2 is widely expected to be weak, reflecting lower deliveries, unfavorable 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)
Market Cap
€138.67B
Dividend Yield1.7%
Average Volume (3M)1.03M
Price to Earnings (P/E)28.1
Beta (1Y)1.11
Revenue Growth5.12%
EPS Growth59.43%
CountryFR
Employees157,894
SectorIndustrials
Sector Strength84
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.48
Shares Outstanding792,283,700
10 Day Avg. Volume1,055,925
30 Day Avg. Volume1,026,062
Financial Highlights & Ratios
PEG Ratio2.57
Price to Book (P/B)6.24
Price to Sales (P/S)1.77
P/FCF Ratio32.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€196.36Price Target Upside12.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Airbus Group SE Business Overview & Revenue Model
Company DescriptionAirbus Group SE, commonly known as Airbus, is a European multinational aerospace corporation headquartered in Leiden, Netherlands. It is one of the world's leading manufacturers of commercial aircraft, helicopters, military transports, and satellites. The company operates through three main divisions: Airbus Commercial Aircraft, Airbus Helicopters, and Airbus Defence and Space. Airbus is renowned for its commercial airliners, including the A320, A330, and A350 families, and is a significant player in both the defense and space sectors.
How the Company Makes MoneyAirbus generates revenue primarily through the design, manufacturing, and sale of commercial aircraft. The Airbus Commercial Aircraft division is the largest revenue contributor, driven by the demand for single-aisle and wide-body aircraft from airlines worldwide. Airbus Helicopters provides revenue through sales of civil and military helicopters and related services. The Airbus Defence and Space division earns income by supplying military aircraft, space systems, and security solutions to governments and commercial clients. Additionally, the company benefits from long-term service contracts, maintenance, and training services for its products. Strategic partnerships and collaborations with global airlines, leasing companies, and government agencies further bolster its revenue streams.
Airbus Group SE Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: -2.36%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While Airbus reported strong commercial orders and increased revenue, significant challenges were highlighted, particularly related to engine supply chain issues affecting aircraft deliveries and negative cash flow. The strategic focus remains on overcoming these hurdles to achieve year-end targets.Q2-2025 Updates
Positive Updates
Record Commercial Aircraft Backlog
The commercial aircraft backlog increased to 8,754 aircraft at the end of June 2025, driven by strong demand and over 240 orders during the Paris Air Show.
Increased Revenue and EBIT Adjusted
H1 2025 revenue increased by 3% year-on-year to EUR 29.6 billion, and EBIT adjusted improved to EUR 2.2 billion from EUR 1.4 billion in H1 2024.
Strong Order Intake in Defense & Space
Defense & Space order intake stood at EUR 5.1 billion in H1 2025, with significant contracts including the A400M agreement and additional MRTT aircraft for NATO.
Helicopter Deliveries and Revenue Growth
Helicopter deliveries increased by 14 units to 138, contributing to a 16% revenue increase to EUR 3.7 billion in H1 2025.
Negative Updates
Engine Supply Chain Challenges
The production of 60 aircraft was completed but remained undelivered due to missing engines, mainly from CFM, impacting cash flow and delivery targets.
Negative Free Cash Flow
Free cash flow before customer financing was negative EUR 1.6 billion in H1 2025, largely due to the buildup of inventory related to undelivered aircraft.
Delayed Spirit AeroSystems Integration
The closing of the Spirit AeroSystems work package integration has been delayed to Q4 2025, affecting operational plans and timelines.
Company Guidance
During the Airbus H1 2025 earnings call, the company maintained its 2025 guidance, projecting 820 commercial aircraft deliveries, an EBIT adjusted of around €7 billion, and free cash flow before customer financing of approximately €4.5 billion. The first half of 2025 saw the delivery of 306 commercial aircraft, leading to an EBIT adjusted of €2.2 billion and a free cash flow before customer financing of negative €1.6 billion, with a notable impact from 60 "glider" aircraft—those fully produced but missing engines. The order intake included 494 gross orders and a backlog increase to 8,754 aircraft. Airbus highlighted the strong commercial momentum, including 240 orders at the Paris Air Show, and confirmed the ramp-up plans for A320, A330, A350, and A220 aircraft. Additionally, the guidance excludes the impact of tariffs, which are under review following recent agreements between the U.S. and the EU.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
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 70.02B | 69.23B | 65.45B | 58.76B | 52.15B | 49.91B |
| Gross Profit | 10.75B | 10.68B | 10.04B | 10.17B | 9.63B | 5.66B |
| EBITDA | 9.86B | 9.18B | 7.76B | 8.20B | 7.69B | 2.11B |
| Net Income | 4.93B | 4.23B | 3.79B | 4.25B | 4.21B | -1.13B |
Balance Sheet | ||||||
| Total Assets | 129.04B | 129.21B | 118.87B | 115.94B | 107.05B | 110.09B |
| Cash, Cash Equivalents and Short-Term Investments | 12.70B | 19.18B | 18.83B | 18.55B | 16.20B | 16.36B |
| Total Debt | 10.63B | 11.28B | 11.32B | 10.98B | 13.46B | 15.62B |
| Total Liabilities | 105.89B | 109.52B | 101.14B | 102.96B | 97.56B | 103.64B |
| Stockholders Equity | 23.06B | 19.61B | 17.70B | 12.95B | 9.47B | 6.45B |
Cash Flow | ||||||
| Free Cash Flow | 2.48B | 3.93B | 3.35B | 3.92B | 2.79B | -7.18B |
| Operating Cash Flow | 6.18B | 7.60B | 6.41B | 6.39B | 4.72B | -5.42B |
| Investing Cash Flow | -5.42B | -6.72B | -4.13B | -3.07B | -2.66B | 4.21B |
| Financing Cash Flow | -2.87B | -2.70B | -1.42B | -2.26B | -2.32B | 6.74B |
Airbus Group SE Technical Analysis
Positive
175.20
Price Trends
173.36
Positive
163.34
Positive
158.06
Positive
Market Momentum
0.15
Positive
51.65
Neutral
44.16
Neutral
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 175.2 is below the 20-day moving average (MA) of 180.11, above the 50-day MA of 173.36, and above the 200-day MA of 158.06, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 51.65 is Neutral, neither overbought nor oversold. The STOCH value of 44.16 is Neutral, 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | €138.67B | 28.05 | 23.80% | 1.70% | 5.12% | 59.43% | |
70 Outperform | €119.82B | 27.82 | 35.36% | 1.00% | 14.19% | 161.87% | |
68 Neutral | €48.69B | 71.24 | 14.51% | 1.60% | 11.16% | -50.57% | |
66 Neutral | €21.11B | 27.05 | 12.93% | 1.75% | 29.91% | -2.24% | |
63 Neutral | $10.64B | 16.04 | 5.48% | 2.12% | 2.73% | -23.95% |
* Industrials Sector Average
Performance Comparison
FR:AIR
Airbus Group SE
177.40
45.90
34.90%
FR:HO
Thales
231.20
87.61
61.02%
FR:AM
Dassault Aviation
270.40
85.85
46.52%
FR:SAF
SAFRAN SA
291.20
101.79
53.74%
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.