Airbus’ full-year revenue rose 6% to €73.4bn. This reflected growth across all divisions, including double-digit increases in its Helicopters and Defence and Space businesses. Commercial aircraft deliveries totalled 793 (2024: 766).
Underlying operating profit rose 33% to €7.1bn (£6.9bn expected), with the uplift driven by a sharp return to profitability in the Defence & Space division.
Free cash flow improved from €4.5bn to €4.6bn. The net cash position rose from €11.8bn to €12.2bn.
In 2026, Airbus expects to deliver around 870 commercial aircraft (907 expected). Underlying operating profits and free cash flow are expected to land at around €7.5bn and €4.5bn respectively.
A dividend of €3.20 per share was announced, up 7% when including last year’s special dividend.
The shares fell 7.0% in early trading.
Our view
Airbus delivered a solid performance in 2025, with profits landing ahead of expectations thanks to a strong performance in the Defence & Space division. But the outlook for 2026 was worse than expected across the board. Alongside delays from one of its engine suppliers, the longer-term production ramp-up has been cut back slightly, causing the shares to fall on the day.
At its core, Airbus builds aircraft using thousands of parts from companies worldwide. Market dynamics are very favourable given it’s dominated by just two companies, with the split standing at roughly 60/40 in Airbus’ favour. Meanwhile, high barriers to entry help to keep outside competition at bay.
Demand is strong as airlines try to upgrade their fleets after years of COVID-19 underinvestment. As a result, the order backlog rose to 8,754 aircraft. That’s more than 11 times the number of planes Airbus delivered in the whole of 2025, giving the group great revenue visibility.
Issues with suppliers continue to be the main bottleneck to meeting demand. While the picture looks to be improving overall, issues with one of its engine suppliers have led Airbus to wind back its production ramp-up until at least 2027. This kind of issue is largely out of the group’s control and likely to remain a key risk moving forward.
As a result, guidance for 2026 was well below market expectations and now looks relatively undemanding. Even if aircraft production falls slightly short, which has been the case in recent years, Airbus is developing a bit of a reputation for still meeting its profit targets thanks to disciplined cost management.
The Defence and Space division offers some diversification from its commercial aircraft operations. After a tough period of write-downs, performance has picked up significantly, and the division is back to turning a profit. With Europe looking to ramp up its defence spending in the coming years, Airbus looks well-placed to deal with the shifting landscape and increasing demand.
The balance sheet is in great shape, with net cash standing at €12.2bn. That means the forward dividend yield of 1.7% looks well covered. But remember, shareholder returns can vary and are never guaranteed.
Airbus’ strong market position and demand outlook position it well for long-term success. But the valuation on a forward price-to-earnings basis is sitting some way above its long-run average, which we feel doesn’t reflect the ongoing challenges with suppliers. These issues are unlikely to be resolved quickly, so potential investors should be willing to ride out some turbulence.
Environmental, social and governance (ESG) risk
The aerospace and defence sector is high risk in terms of ESG. Carbon emissions from products and services and product governance are key risk drivers. Data privacy, business ethics, and security and labour relations are also contributors to ESG risk.
According to Sustainalytics, Airbus’ management of ESG risk is strong.
The Ethics, Compliance, and Sustainability Committee, which reports to the Board of Directors, oversees all ethical and sustainable businesses. The group has developed and implemented very strong programmes to manage bribery and corruption, business ethics and human rights, along with a robust whistleblower programme. Overall, Airbus remains one of the lowest risk companies in the Aerospace and defence industry.
Airbus key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.