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Airbus Group SE (FR:AIR)
:AIR

Airbus Group SE (AIR) AI Stock Analysis

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Airbus Group SE

(OTC:AIR)

Rating:74Outperform
Price Target:
Airbus Group SE's overall stock score reflects strong financial performance, characterized by consistent growth and effective cash management. While technical indicators suggest caution due to mixed momentum, particularly in the short term, the company's robust order backlog and revenue growth are positive signals. Valuation remains a concern due to a high P/E ratio, and despite strong order momentum, the earnings call highlighted challenges such as supply chain issues and negative cash flow that need resolution. These factors collectively result in a moderately positive outlook for the stock.
Positive Factors
Environmental Innovation
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 Flexibility
Substantial net cash position and strong free cash flow generation enable flexibility for M&A and greater shareholder returns.
Market Position
Airbus holds a critical position in the global aerospace industry, where it competes with Boeing to supply the vast majority of commercial airliners.
Negative Factors
Delivery Challenges
Year-to-date deliveries are down 5%, with Airbus needing 13% year-over-year growth over the remainder of the year to reach its 820 delivery guide.
Earnings Pressure
Weaker year-over-year EBIT at Airbus Commercial despite a hedge improvement.
Supply Chain Issues
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)

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 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: 14.84%|
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
84
Very Positive
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.
Balance Sheet
79
Positive
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.
Cash Flow
82
Very Positive
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
69.94B69.23B65.45B58.76B52.15B49.91B
Gross Profit
10.62B10.68B10.04B10.57B9.63B5.66B
EBIT
4.82B4.80B4.27B5.83B5.75B-805.00M
EBITDA
9.32B8.83B7.50B8.07B7.65B2.07B
Net Income Common Stockholders
4.43B4.23B3.79B4.25B4.21B-1.17B
Balance SheetCash, Cash Equivalents and Short-Term Investments
17.98B19.18B18.83B18.25B16.43B16.52B
Total Assets
132.40B129.21B118.87B115.94B107.05B110.09B
Total Debt
11.21B11.28B13.59B10.98B13.46B15.62B
Net Debt
-2.46B-3.73B-2.88B-4.84B-1.11B1.18B
Total Liabilities
110.31B109.52B101.14B102.96B97.56B103.64B
Stockholders Equity
22.00B19.61B17.70B12.95B9.47B6.45B
Cash FlowFree Cash Flow
5.45B3.73B3.35B3.82B2.71B-7.18B
Operating Cash Flow
9.22B7.40B6.41B6.29B4.64B-5.42B
Investing Cash Flow
-6.48B-6.65B-4.13B-3.11B-2.72B4.13B
Financing Cash Flow
-2.58B-2.57B-1.28B-2.12B-2.18B6.83B

Airbus Group SE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price165.34
Price Trends
50DMA
153.18
Positive
100DMA
158.16
Positive
200DMA
148.52
Positive
Market Momentum
MACD
3.47
Negative
RSI
59.83
Neutral
STOCH
53.75
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 165.34 is above the 20-day moving average (MA) of 162.12, above the 50-day MA of 153.18, and above the 200-day MA of 148.52, indicating a bullish trend. The MACD of 3.47 indicates Negative momentum. The RSI at 59.83 is Neutral, neither overbought nor oversold. The STOCH value of 53.75 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FRAIR
74
Outperform
$130.87B29.4721.75%1.13%5.16%12.89%
66
Neutral
$4.51B12.295.40%248.53%4.14%-12.41%
€24.61B26.7715.30%1.50%
€110.73B62.29-6.13%1.09%
€53.74B51.8514.05%1.41%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:AIR
Airbus Group SE
165.34
19.17
13.11%
GB:0IAX
Dassault Aviation
315.20
126.27
66.83%
GB:0IU8
SAFRAN SA
265.56
61.76
30.30%
GB:0IW5
Thales
261.50
94.40
56.49%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.