AeroMorning October 30, 2025

Airbus has reported better-than-expected results for the third quarter of 2025, confirming its position as a global industrial leader. The European group posted revenue of €17.83 billion, up 14% year-on-year, while adjusted EBIT reached €1.94 billion, a 38% increase. Net profit also rose by 14%.

Commercial Aircraft Segment Driving Growth

The commercial aircraft segment, Airbus’ core business, generated over €13 billion in revenue (+12%), supported by ramp-ups in the A320neo and A321 programs. Airbus delivered 507 aircraft over the first nine months and maintains its target of 820 deliveries for the full year, demonstrating strong industrial momentum.

The company continues to optimize its product mix:

• The A321XLR, a higher-margin aircraft, is taking an increasing share of order backlogs.
• The A220 program is ramping up more slowly, with a target of 12 aircraft per month in 2026 versus 14 initially, reflecting caution due to persistent engine and spare parts supply pressures.

Market Reaction

Investors welcomed the publication: Airbus shares rose 3% in after-hours trading, reaching a record high of €214.5. Valuation remains elevated at around 25–30 times 2025 earnings, well above Boeing, which continues to face industrial and financial challenges. This premium reflects the earnings visibility of Airbus but limits short-term upside potential.

Key Watchpoints

Free cash flow remains negative for the first nine months, due to rising inventories and supply chain tensions. Airbus aims for a recovery by year-end, supported by seasonal delivery patterns and cost control measures.

Conclusion

Airbus delivered a robust quarter, supported by strong demand in air transport and solid industrial performance. The high valuation reflects investor confidence but also places the onus on the group to meet its delivery and cash flow