Shares in Airbus Group (EU:AIR) dropped almost 6% on Thursday after the aircraft manufacturer issued a softer-than-anticipated delivery outlook for 2026 due to engine supply constraints, overshadowing a better-than-expected fourth-quarter profit performance.
For the three months to December 31, Airbus reported earnings per share of €3.27, marking a 7% increase year on year and comfortably ahead of Investing.com forecasts of €2.34.
Quarterly revenue rose 5% to €25.98 billion, although this came in below market expectations of €27.5 billion. By the end of 2025, consolidated order intake reached €123.3 billion, with the total order backlog valued at €619 billion.
Looking ahead, Airbus projected commercial aircraft deliveries of 870 units in 2026, falling short of Bloomberg consensus estimates of around 896 aircraft.
Chief Executive Guillaume Faury said that despite strong worldwide demand for Airbus jets, the company continues to face “significant” supply shortages of Pratt & Whitney engines, produced by a subsidiary of Rtx Corp (NYSE:RTX).
The engine bottleneck has also led Airbus to adjust its production plans. The group now expects monthly output of its narrowbody aircraft to reach between 70 and 75 units by the end of 2027, stabilising at 75 per month thereafter. Previously, Airbus had targeted a rate of 75 aircraft per month in 2027.
RBC Capital Markets analyst Ken Herbert commented that Airbus’ fourth-quarter performance was “overshadowed by soft 2026 guide.”
“We believe investors will view the guide as below expectations, and could put pressure on the stock in the near term. However, we do believe the company’s guide for ~870 aircraft deliveries is appropriately conservative, as we have called out that we expected a sub-900 delivery guide,” he wrote.
Jefferies analyst Chloe Lemarie echoed similar concerns, stating that “FY25 results should allay some fears, notably with a solid FCF performance despite inventory buildup.”
“However, the 2026 guide is weaker than we expected,” she added.
Airbus also proposed a dividend of €3.20 per share for 2025.
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