Airbus SE (OTC:EADSY) reported weaker first-quarter 2026 results, with lower commercial aircraft deliveries impacting performance.
Revenue, margins, and cash flow declined, while defense operations provided a partial offset.
Earnings and Revenue Decline
The company reported GAAP EPS of 0.74 euros, down from 1.01 euros a year earlier, while adjusted EBIT fell to 300 million euros from 624 million euros.
Revenue declined 7% to 12.7 billion euros, and reported EBIT dropped to 224 million euros from 473 million euros, with margins compressing across the board.
EBIT margin narrowed to 1.8% from 3.5%, while adjusted EBIT margin declined to 2.4% from 4.6%.
In U.S. dollar terms, Airbus posted first-quarter EPS of 22 cents, missing the 25-cent estimate, and revenue of $14.81 billion, below the $17.01 billion forecast.
Commercial Performance and Orders
Airbus delivered 114 commercial aircraft, down from 136 a year ago, including 81 A320 Family jets. Net commercial orders rose to 398 aircraft, with backlog reaching 9,037 units.
Airbus Helicopters logged 79 net orders, with a backlog totaling 1,060 units. Defense and Space order intake rose to 5.0 billion euros, supported by strong Air Power demand.
Segment Performance
Commercial aircraft revenue fell 11% to 8.4 billion euros, driven by lower deliveries. Adjusted EBIT dropped to 81 million euros from 494 million euros due to currency impact and unfavorable hedge rates.
Helicopter revenue was stable at 1.6 billion euros, with adjusted EBIT of 65 million euros versus 78 million euros.
Defense and Space revenue rose 7% to 2.8 billion euros, with adjusted EBIT increasing to 130 million euros from 77 million euros.
Cash Flow, Balance Sheet and Outlook
Research and development expenses rose to 730 million euros. Inventory increased to 46.9 billion euros, contributing to a working capital outflow of 2.9 billion euros.
Free cash flow before customer financing was negative 2.5 billion euros, compared with negative 310 million euros a year earlier.
The decline was driven by working capital build and lower aircraft deliveries. Total free cash flow came in at negative 2.4 billion euros.
Gross cash stood at 25.2 billion euros, gross debt at 15.4 billion euros, and net cash at 9.8 billion euros.
“The Q1 results reflect the lower level of commercial aircraft deliveries and a strong performance in our Defense and Space division. The operating environment remains dynamic and complex. We are closely monitoring the potential impact from the fast-changing situation in the Middle East,” said Guillaume Faury, Airbus Chief Executive Officer.
Airbus said Pratt & Whitney engine shortages continue to limit its production ramp-up. The company maintained its 2026 guidance, targeting around 870 aircraft deliveries.
It also expects adjusted EBIT of about 7.5 billion euros and free cash flow of 4.5 billion euros, assuming no disruptions.
EADSY Price Action: Airbus shares were up 4.36% at $50.47 during premarket trading on Wednesday, according to Benzinga Pro data.
Image by Coby Wayne via Shutterstock
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