Airbus has reported a rise in first-half profit, despite a decline in aircraft deliveries and continued pressure on production rates due to supply chain challenges.
Consolidated net income climbed to €1.52bn ($1.65bn) from €825 million ($896 million) a year prior, with consolidated revenues increasing by 3% to €29.6bn ($32.1bn), up from €28.8bn ($31.2bn) in the first half of 2024, although revenues from Airbus’ core commercial aircraft division fell 2% to €20.8bn ($22.6bn), from lower deliveries.
Airbus handed over 306 commercial aircraft in the first six months of the year, down from 323 a year earlier, including 41 A220s, 232 A320 family aircraft, 12 A330s and 21 A350s.
“The operating environment is complex and fast-changing. On tariffs, the recent political agreement between the EU and the US to revert to a zero-tariff approach for civil aircraft is a welcome development for our industry,” commented Airbus CEO Guillaume Faury. "Our 2025 guidance, which continues to exclude the impact of tariffs, remains unchanged.”
Reported EBIT, which includes one-offs, rose to €1.61bn ($1.75bn) from €1.45bn ($1.57bn), after €587 million ($637 million) in net negative adjustments. These included €391 million ($424 million) related to the mismatch between working capital and dollar revaluations, largely recorded in the second quarter, as well as €105 million ($114 million) related to a workforce adaptation plan in the defence unit and €57 million ($62 million) in stabilisation costs linked to the integration of Spirit AeroSystems work packages.
Airbus is in the process of acquiring certain Spirit packages to secure long-term stability in its supply chain, though the closing has now shifted into the fourth quarter of 2025 pending regulatory approval.
Adjusted EBIT rose to €2.2bn ($2.39bn) from €1.4bn ($1.52bn), despite a weaker commercial delivery profile. Within that, adjusted EBIT from commercial aircraft operations fell to €1.7bn ($1.85bn) from €1.95bn ($2.12bn) a year earlier.
Despite the improved earnings, Airbus reported negative free cash flow before customer financing of €1.6bn ($1.74bn), compared to negative €529 million ($574 million) a year earlier, due mainly to planned inventory buildup and an elevated number of completed aircraft awaiting engines.
Including customer financing, free cash flow was negative €1.58bn ($1.72bn). Gross cash at the end of June stood at €21.1bn ($22.89bn), down from €26.9bn ($29.21bn) at the end of 2024, with net cash at €7bn ($7.6bn) versus €11.8bn ($12.81bn), following the dividend payment and the impact of a weaker dollar.
Backlog rose to 8,726 aircraft at the end of March, with gross orders of 280 in the quarter, including 233 for narrowbody aircraft and 47 for widebodies. Net orders stood at 204 after accounting for 76 cancellations.
Airbus is continuing to ramp up its narrowbody production, targeting a monthly output of 75 A320 family aircraft by 2027. The A220 programme aims to reach a rate of 14 per month by 2026, while the A350 is expected to hit a monthly rate of 12 by 2028. However, ongoing supply chain bottlenecks, particularly at Spirit AeroSystems, continue to weigh on production of both the A220 and A350 models. The A330 programme has stabilised at four aircraft per month, with a planned increase to five by 2029.
Faury, told analysts during an earnings call that delivery delays due to engine shortages are persisting, with Airbus seeing an increase in the number of "gliders" — finished aircraft that cannot be delivered due to missing engines.
At the end of the first quarter, the number stood at 17 and has since grown. “It will continue to get worse before it gets better,” Faury stated, adding that the situation should normalise by the summer, though timing remains uncertain. “As soon as we have engines, it goes fast from glider to delivery,” he added.
Faury also addressed concerns over US tariffs, explaining that Airbus, as the importer in certain cases, absorbs the import duties itself, particularly for aircraft assembled in Mobile, Alabama, with components shipped from Europe.
“I don't see a change in nature in the discussion with customers besides managing the tariffs themselves on the short term,” Faury added.
To mitigate exposure, Airbus is exploring options to reroute aircraft originally destined for the US to international customers and said it is working with airlines to manage deliveries through their global networks.
The company is leveraging experience from the WTO dispute era, when tariffs were imposed at 10% and later 15% on aircraft.
The company reaffirmed its 2025 outlook, which excludes the impact of tariffs, and still maintains its target of delivering around 820 commercial aircraft deliveries, adjusted EBIT of approximately €7bn ($7.6bn), and free cash flow before customer financing of €4.5bn ($4.9bn).