Commercial Aviation
Airbus H1 2025 Financial Results Show Growth Amid Supply Chain Challenges
Airbus reports €29.6B revenue and 402 net orders in H1 2025, managing supply chain delays while maintaining delivery targets and sustainability focus.
In the first half of 2025, Airbus SE demonstrated resilience in the face of ongoing global supply chain disruptions, reporting solid financial results and strategic progress. Despite a slight dip in aircraft deliveries compared to the same period in 2024, the aerospace giant increased its revenue, secured more net orders, and reaffirmed its full-year delivery targets. This performance underscores Airbus’s capacity to adapt to operational challenges while maintaining long-term growth trajectories.
With €29.6 billion ($34 billion) in revenue and 306 aircraft delivered, Airbus continues to lead the global aerospace industry. The company’s adjusted EBIT of €2.2 billion ($2.5 billion) reflects efficient cost management and robust demand, particularly in commercial aviation. However, persistent delays in engine and component supplies have impacted delivery schedules, prompting Airbus to delay the closing of its acquisition of Spirit AeroSystems’ work packages to the fourth quarter of 2025.
This article breaks down Airbus’s H1 2025 performance, contextualizes recent developments, and explores the broader implications for the aerospace sector, including competitive dynamics, supply chain resilience, and global demand trends.
Airbus reported H1 2025 revenues of €29.6 billion, a 3% increase from €28.8 billion in H1 2024. This growth was primarily driven by higher order volumes, despite a decrease in aircraft deliveries from 323 to 306 units. The adjusted EBIT rose significantly to €2.2 billion, up from €1.4 billion in the previous year, indicating improved operational efficiency and favorable pricing dynamics.
The reported EBIT stood at €1.6 billion, reflecting a modest 7% increase year-over-year. However, free cash flow before mergers and acquisitions was negative at -€1.6 billion, compared to -€0.5 billion in H1 2024. This decline is attributed to inventory buildup and delayed deliveries due to supplier constraints.
Net commercial aircraft orders surged to 402, up from 310 in H1 2024, while the overall backlog reached 8,754 aircraft. This signals strong long-term demand and positions Airbus favorably for the remainder of the year, as it aims to meet its full-year delivery target of 820 aircraft.
“We have a credible second-half plan,” said CEO Guillaume Faury, emphasizing confidence in meeting delivery targets despite H1 constraints.
The Commercial-Aircraft division, Airbus’s largest revenue contributor, generated €20.8 billion in H1 2025, a slight decline from the previous year due to reduced deliveries. Adjusted EBIT for the segment fell by 12% to €1.7 billion, impacted by higher research and development costs and supply chain inefficiencies.
Airbus Helicopters delivered a strong performance, with revenues rising 16% year-over-year to €3.7 billion, driven by increased service activities. The segment’s adjusted EBIT improved by 8% to €249 million, reflecting a stable and growing demand for rotary-wing platforms. The Defence and Space division reported revenues of €5.8 billion, a 16.6% increase from H1 2024. Notably, the segment rebounded from prior-year losses, recording an adjusted EBIT of €265 million compared to a negative €807 million in H1 2024. This recovery was supported by improved program execution and cost control.
Despite solid revenue growth, Airbus reported a negative free cash flow of -€1.6 billion. This was largely due to working capital build-up, including unfinished aircraft awaiting engines and other components. The company anticipates cash flow normalization in the second half of the year as deliveries accelerate.
The order backlog remains robust, with 8,754 commercial aircraft on order. This reflects sustained global demand, particularly for narrow-body aircraft like the A320neo, which continues to dominate order books amid airline fleet modernization efforts.
Airbus’s financial guidance for 2025 remains unchanged, with an adjusted EBIT target of €7 billion and 820 aircraft deliveries. These targets hinge on resolving supply chain bottlenecks and maintaining production momentum in H2 2025.
Airbus continues to grapple with component shortages, particularly engines for the A320 family. Delays from suppliers such as CFM International and Pratt & Whitney left around 60 aircraft undelivered at the end of June 2025. These disruptions have created delivery backlogs and impacted cash flow.
Another unexpected bottleneck emerged in the A350 program, where lavatory unit shortages delayed aircraft completion. This highlights the fragility of extended supply chains and the importance of even minor components in final assembly.
To mitigate such risks, Airbus has postponed the acquisition of certain Spirit AeroSystems work packages to Q4 2025. These include A350 fuselage sections and A220 wings, which Airbus aims to insource to enhance supply chain control. The delay is partly due to regulatory approvals tied to Boeing’s parallel acquisition of Spirit’s commercial operations.
“You can’t really build an airplane without a toilet,” quipped Christian Scherer, Airbus’s Commercial Aircraft Director, underscoring the complexity of aircraft manufacturing.
A significant positive development was the EU-US agreement to revert to a zero-tariff regime for civil aircraft. This move ends a long-standing trade dispute and reduces cost pressures for Airbus in its key transatlantic market. CEO Guillaume Faury welcomed the agreement, calling it “a welcome development for our industry.” Airbus also benefits from strong global aircraft demand. According to its Global Market Forecast 2025–2044, the company anticipates 43,420 new aircraft deliveries over the next two decades, driven by growth in Asia and the Middle East. These regions are experiencing annual traffic growth rates of up to 8.9%, necessitating fleet expansion and modernization.
Nonetheless, geopolitical uncertainties and potential shifts in trade policy remain a concern. Airbus continues to monitor developments in global trade relations, particularly in light of ongoing tensions between major economies.
Airbus’s strategic focus includes increasing vertical integration to reduce reliance on external suppliers. The Spirit AeroSystems acquisition is a step in this direction, aligning with broader industry trends toward insourcing critical components.
The company is also emphasizing regional diversification, with production sites in Morocco, the U.S., and Scotland. This approach aims to decentralize manufacturing and reduce exposure to localized disruptions.
Looking ahead, Airbus is investing in next-generation propulsion technologies, including hydrogen-powered aircraft, to meet Sustainability goals. These initiatives align with the Global Market Forecast’s emphasis on fleet modernization and emissions reduction.
Airbus’s H1 2025 results reflect a company navigating complex operational challenges while maintaining strategic clarity and financial stability. Revenue growth, increased net orders, and a robust backlog highlight the strength of its market position. However, supply chain disruptions continue to affect deliveries and cash flow, necessitating adaptive measures such as vertical integration and diversified sourcing.
As Airbus enters the second half of 2025, its ability to meet delivery targets and execute strategic acquisitions will be critical. The resolution of trade disputes and sustained global demand provide a favorable backdrop, but ongoing vigilance in supply chain management and geopolitical risk assessment remains essential. The company’s long-term focus on sustainability and innovation positions it well for future growth in a rapidly evolving aerospace landscape.
What were Airbus’s revenues in H1 2025? How many aircraft did Airbus deliver in H1 2025? What caused the Delivery delays? What is the Spirit AeroSystems acquisition? How is Airbus addressing sustainability?
Airbus H1 2025 Financial Results, Navigating Growth Amid Supply Chain Headwinds
Financial and Operational Performance Overview
Revenue and Profitability Metrics
Segment-Specific Performance
Cash Flow and Order Backlog
Strategic Developments and Industry Challenges
Supply Chain Disruptions
Market and Political Environment
Strategic Positioning and Long-Term Outlook
Conclusion
FAQ
Airbus reported revenues of €29.6 billion ($34 billion) in the first half of 2025.
The company delivered 306 commercial aircraft, down from 323 in H1 2024.
Delivery delays were primarily due to engine shortages from suppliers and a bottleneck in lavatory unit supplies for the A350 program.
Airbus plans to acquire certain Spirit AeroSystems work packages to improve supply chain control. The deal has been delayed to Q4 2025.
Airbus is investing in hydrogen propulsion and fleet modernization to meet long-term environmental goals.
Sources
Photo Credit: Reuters