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Airbus maintains annual targets despite supply chain challenges ahead of Q4

Airbus maintains annual targets despite supply chain challenges ahead of Q4
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Guillaume Faury, CEO | Airbus

Airbus is preparing for the final quarter of 2025 with plans to increase aircraft deliveries and maintain its annual targets. The company aims to produce about 820 commercial aircraft this year, expecting around €7 billion ($8.22 billion) in EBIT and generating approximately €4.5 billion ($5.3 billion) in free cash flow.

The manufacturer’s delivery ramp-up has been slowed by engine shortages, particularly affecting the Airbus A320 family. Despite these supply chain issues, Airbus remains on track to meet its full-year production goals, according to Reuters.

The company's Defense & Space segment has contributed significantly to its financial performance, nearly doubling adjusted earnings year-on-year due to increased global defense spending. However, total deliveries dropped from 181 last year to 170 this year. Inventory build-up caused by engine delays has tied up working capital and led to negative free cash flow.

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Pratt & Whitney engine shortages are a major obstacle for Airbus as it heads into the fourth quarter. These challenges have limited the manufacturer’s flexibility for further growth initiatives and have kept delivery numbers at around 820 models for the year.

Airbus is also working on integrating Spirit AeroSystems’ work packages while managing regulatory risks and maintaining support and transition plans for ongoing projects. The company sees opportunities in expanding its presence in defense, maintenance, repair, and overhaul markets.

External factors such as foreign exchange rates, trade barriers, commodity prices, and labor constraints remain concerns that could affect future performance.

Despite these headwinds, demand from airlines seeking fleet expansion puts Airbus in a strong position with a growing order book—especially for the A320neo program—and a solid reputation among customers following safety issues faced by competitors like Boeing.

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