As at: 13 August 2026

Executive Summary

Key highlights

In this report, we review Airbus’s 1H26 results, released on 29 July 2026, and assess their impact on our outlook:

Financial results at a glance:

• Airbus’s consolidated revenue grew by 12% from €29.6 billion in 1H25 to €33.2 billion in 1H26, driven primarily by higher Commercial Aircraft deliveries and stronger Defence and Space volumes. After inter-segment eliminations, Commercial Aircraft revenue rose by 15% from €20.4 billion to €23.4 billion, Defence and Space revenue expanded by 9% from €5.7 billion to €6.3 billion, while revenue from the Helicopters segment remained stable at €3.5 billion.

• Cost of sales advanced by 10% from €25.4 billion in 1H25 to €27.8 billion in 1H26, driven by a rise in aircraft deliveries and a ramp-up in production.

• Gross profit moved 26% higher from €4.3 billion to €5.3 billion, with the gross margin improving from 14.4% to 16.1%. Adjusted EBIT increased 24% from €2.2 billion to €2.7 billion, while reported EBIT increased 70% from €1.6 billion to €2.7 billion, underpinned by higher deliveries and improved performance from the Defence and Space segment.

• Net income increased by 47% from €1.5 billion to €2.2 billion, while EPS grew by 47%, from €1.93 to €2.84.

• Commercial Aircraft adjusted EBIT rose by 16% from €1.7 billion to €2.0 billion, with the margin improving slightly from 8.2% to 8.3% as deliveries increased from 306 to 351 aircraft. Helicopters’ adjusted EBIT declined 4% to €240 million, with margins easing from approximately 6.7% to 6.5%.

• Defence and Space adjusted EBIT expanded by 84% from €265 million to €487 million, with the margin improving from approximately 4.6% to 7.7%, supported by higher volumes, improved programme profitability and favourable cost phasing.

• Commercial Aircraft net orders advanced by 104% from 402 to 821 aircraft, decreasing the backlog to 9 222 aircraft. The intake of Defence and Space orders moved 83% higher, from €5.1 billion to €9.3 billion.

• FCF before customer financing improved, with the outflow narrowing by €444 million from negative €1.61 billion to negative €1.17 billion. Working capital remained a significant cash drag, reflecting the €4.4 billion investment required to support the improvement of production, with inventories increasing 17% to €48.6 billion.

Analyst thesis

Our recommendation is based on:

• Airbus remains one of Europe’s highest-quality industrial franchises, underpinned by its entrenched position in the commercial aircraft market, high certification and engineering barriers, fleet commonality and significant customer switching costs, that together support pricing power and long-term customer retention.

• Demand visibility is strong, but production capacity remains the key constraint on earnings growth. Airbus has a substantial commercial aircraft backlog, but converting this demand into revenue and free cash flow (FCF) depends on engine availability, supplier recovery, and the successful ramp-up of production capacity. We expect these constraints to ease gradually as Airbus increases production rates and integrates the recently acquired Spirit AeroSystems operations, although execution remains the principal operational risk.

• Longer-term demand is supported by global passenger-traffic growth and fleet replacement, particularly as airlines replace older aircraft with newer, more fuel-efficient models. Higher European defence spending should also support Airbus’s Defence and Space segment, along with the demand for military helicopters, while improved programme execution has supported a recovery in Defence and Space profitability. The focus now shifts to further margin expansion.

• Higher commercial aircraft production should improve fixed-cost absorption and support earnings and FCF growth over the medium term.

• While we remain constructive on Airbus’s medium-term earnings outlook, we believe much of the benefit from higher commercial aircraft production, backlog conversion and increased European/NATO defence spending is already reflected in the current share price. We therefore view Airbus as fairly valued and maintain a hold recommendation.