Airbus shares are trading sharply lower (-1.44% at 180.80 euros), underperforming a CAC 40 index that is down 0.88%. The decline follows the group's release of its April order and delivery figures yesterday, prompting Jefferies to provide an updated assessment.
On Thursday evening, the European aircraft manufacturer announced it had delivered 67 aircraft in April, representing a 20% year-on-year increase. This figure surpassed Jefferies' expectations by 4 units. Despite last month's improvement, the U.S. investment bank estimates that year-to-date deliveries remain down 6%, hampered by delays in Pratt & Whitney GTF engine shipments and the widely reported panel inspection issues.
Furthermore, gross orders for April totaled 28 units, offset by 21 cancellations.
Jefferies notes that inventory levels of flight-ready aircraft have risen to 72 units, excluding an estimated 50 'gliders' (aircraft without engines) in storage. At the end of March, inventory stood at 64 units with approximately 60 gliders.
Key takeaways from the roadshow with Guillaume Faury
The investment bank highlighted several critical factors following an investor roadshow with the group's CEO. Regarding Pratt & Whitney engine delays, delivery volumes for the current fiscal year are now finalized but remain significantly below previous commitments. Discussions are ongoing for 2027, with Airbus seeking compensation for missed deliveries through commercial negotiations or legal action if an amicable solution cannot be reached.
Regarding the Middle East crisis, the group has observed no direct operational disruptions and believes logistical challenges can be managed. Airbus is also monitoring energy-intensive suppliers who could face production halts due to high energy prices, although no such signs have emerged to date.
Analysts maintained a 'Hold' rating on Airbus stock with a price target of 185 euros.
Airbus SE is No. 1 in Europe and No. 2 worldwide in the aeronautics, aerospace, and defense industries. Net sales break down by family of products and services as follows:
- commercial aircraft (70.1%). The group is No. 1 worldwide for aircrafts with more than 100 seats;
- defense and aerospace systems (18.2%): military aircrafts (primarily transport aircrafts, marine surveillance aircrafts, anti-submarines fighter planes and flight refueling aircrafts), spatial equipment (orbital launchers, observation and communication satellite, turboprop aircraft, etc.), defense and security systems (missile systems, electronic and telecommunications systems, etc.). Airbus SE also provides training and aircrafts maintenance services;
- civil and military helicopters (11.7%).
Net sales are distributed geographically as follows: Europe (40.8%), Asia-Pacific (28.0%), North America (17.7%), Middle East (9.0%), Latin America (2.7%), and Other (1.8%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite) and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be carried out. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of rankings based on the following ratings: Returns (Composite), Profitability (Composite) and Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully read the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.