MRO & Manufacturing
Airbus Faces Engine Supply Delays Impacting 60 Aircraft Backlog in 2025
Airbus struggles with engine supply delays from CFM and Pratt & Whitney, causing a backlog of 60 aircraft and impacting 2025 delivery goals.
Airbus Engine Supply Crisis Deepens as Aircraft Backlog Reaches 60 Units Amid Dual Supplier Delays
The European aerospace giant Airbus is currently grappling with a significant operational bottleneck: a backlog of 60 completed commercial aircraft awaiting engine installations. This delay stems from supply chain disruptions involving both of its primary engine suppliers, CFM International and Pratt & Whitney. The issue underscores vulnerabilities in the global aerospace supply chain and poses a challenge to Airbus’s ambitious delivery targets for 2025.
While Airbus reported a strong financial performance in the first half of 2025, including an 85% increase in profits, the inability to deliver completed aircraft is exerting pressure on its cash flow and production planning. The crisis highlights the complexities of modern aircraft manufacturing and the interdependencies that can lead to large-scale disruptions when any one component, such as engines, is delayed.
This article explores the background of the supply chain challenges, the specifics of the current crisis, its financial implications, and the broader industry-wide consequences. It also examines how Airbus and its engine suppliers are responding to the situation and what lies ahead for the aerospace sector.
Background and Historical Context of Airbus Engine Supply Challenges
Airbus’s reliance on two main engine suppliers for its A320neo family, CFM International (LEAP-1A engines) and Pratt & Whitney (PW1100G engines), was initially designed to reduce risk through diversification. However, the dual-supplier model has introduced new complications, particularly when both suppliers face simultaneous production issues.
The COVID-19 pandemic created long-lasting disruptions in the global aerospace supply chain, from raw materials to skilled labor shortages. As the industry rebounded, demand for new aircraft surged, putting additional strain on engine manufacturers already struggling to meet production schedules.
The Pratt & Whitney PW1000G engine family, introduced in 2016, has faced a series of technical challenges including rotor bow and knife edge seal problems. These issues required engineering fixes and retrofitting, further complicating the production timeline. CFM International has also faced pandemic-related disruptions, although it reported a 10% increase in LEAP engine deliveries in the first half of 2025.
The Dual Supplier Dilemma
Airbus’s strategic decision to use two engine suppliers was meant to provide flexibility and reduce dependency. However, when both CFM and Pratt & Whitney encountered delays, the redundancy became a liability. The backlog of 60 aircraft includes models requiring engines from both manufacturers, increasing the complexity of resolving the issue.
Historically, the LEAP-1A engine has been a workhorse for Airbus, offering fuel efficiency and compliance with environmental regulations. Meanwhile, the PW1100G’s geared turbofan design offered similar benefits but came with more intricate manufacturing requirements. Both engines are critical to Airbus’s narrow-body aircraft lineup, particularly the A320neo, which is central to its commercial strategy.
In recent years, both engine programs have made progress in resolving early-stage issues. However, the current crisis suggests that scaling production to meet post-pandemic demand remains a formidable challenge, particularly when dealing with advanced engine architectures and global supply constraints.
“The dual-supplier model, once seen as a buffer against disruption, has ironically become a bottleneck when both suppliers falter simultaneously.” — Industry Analyst
Sixty Aircraft Awaiting Engines: The Current Crisis
Airbus CEO Guillaume Faury confirmed that as of June 2025, 60 aircraft were parked outside the factory awaiting engine installations. This figure marks a sharp increase from 17 in April and around 40 in early June, reflecting the accelerating nature of the supply chain crisis.
These aircraft, often referred to as “gliders” in industry jargon, cannot be delivered to customers until engines are installed. Each undelivered aircraft represents millions of dollars in tied-up capital and lost revenue. The situation is particularly problematic given Airbus’s goal of delivering 820 aircraft in 2025, a target now described by Faury as “not a walk in the park.”
The backlog includes both A320neo and A220 jets. While the majority require CFM’s LEAP-1A engines, recent delays from Pratt & Whitney have compounded the problem. Managing two sets of supply chain issues simultaneously adds logistical and operational strain to Airbus’s production lines.
Financial Ramifications
Despite these operational setbacks, Airbus posted strong financial results for the first half of 2025. Profits rose 85% year-over-year to $1.7 billion, and revenues increased 3% to $33 billion. Adjusted EBIT also climbed 58% to $2.5 billion, reflecting pricing power and operational efficiency.
However, the engine delays have significantly impacted cash flow. Airbus reported negative free cash flow of €1.6 billion ($1.8 billion) in H1 2025, compared to a positive €2 billion in the same period last year. This swing highlights the financial burden of holding completed but undeliverable aircraft.
The company’s order backlog remains strong, with 402 net orders in the first half of the year and a total backlog of 8,754 aircraft. This suggests that customer demand is robust, but delivery delays could strain customer relationships and future sales if not resolved promptly.
CFM and Pratt & Whitney: Supplier Challenges
CFM International has faced multiple supply chain issues, including material shortages and labor strikes. However, it has made progress, delivering 729 LEAP engines in H1 2025, including 410 in Q2, a 30% increase from Q1. Safran, CFM’s French partner, has raised its full-year forecast, expecting a 15–20% increase in engine deliveries.
Pratt & Whitney’s challenges are more technical in nature. The PW1100G has faced issues with powdered metal contamination and design flaws in the knife edge seals. These problems have required extensive inspections and component replacements, slowing production and affecting delivery timelines.
Both companies have launched recovery programs, investing in capacity expansion and quality control. However, the lead times involved in engine manufacturing mean that these efforts will take time to yield results. In the interim, Airbus must manage production schedules and customer expectations with limited engine availability.
Conclusion
The engine supply delays facing Airbus underscore the fragility of global aerospace supply chains. With 60 aircraft awaiting engines, the company is navigating a complex web of operational, financial, and reputational challenges. While strong financial results and a robust order book offer some cushion, the immediate focus remains on resolving supplier issues to meet delivery targets.
Looking ahead, Airbus and its suppliers must continue investing in supply chain resilience and production capacity. The situation also raises broader questions about industry dependence on a limited number of engine manufacturers and the need for more diversified sourcing strategies. How Airbus and its partners navigate the remainder of 2025 will be a critical test of the industry’s ability to adapt to post-pandemic realities.
FAQ
What is causing the delay in Airbus aircraft deliveries?
The delays are due to engine supply shortages from both CFM International and Pratt & Whitney, affecting Airbus’s ability to deliver completed aircraft.
How many aircraft are currently awaiting engines?
As of June 2025, Airbus reported that 60 aircraft were completed but undeliverable due to missing engines.
Which Airbus models are affected?
The affected models include the A320neo and A220, both of which rely on engines from CFM and Pratt & Whitney.
Is Airbus still profitable despite the delays?
Yes, Airbus reported an 85% increase in profits in the first half of 2025, although cash flow has been negatively impacted by the delays.
When is the issue expected to be resolved?
Airbus aims to clear the backlog by the end of 2025, but this depends on improvements in engine delivery from suppliers.
Sources
Photo Credit: World Flying Community
MRO & Manufacturing
Honeywell Unveils New Brands Ahead of 2026 Aerospace Spin-Off
Honeywell announces Honeywell Technologies and Honeywell Aerospace as independent firms post June 29, 2026 spin-off, focusing on AI and aviation.
On June 1, 2026, Honeywell officially unveiled the new brand identities for its automation and aerospace businesses, marking the final stages of a historic corporate restructuring. The two new entities, Honeywell Technologies and Honeywell Aerospace, will operate as independent, publicly traded companies following the aerospace division’s official spin-off scheduled for June 29, 2026.
According to the company’s press release, this announcement dismantles the 140-year-old conglomerate into focused, pure-play businesses. The strategic pivot aligns with broader Wall Street trends that increasingly favor specialized operations over sprawling industrial giants, allowing each new company to target specific global megatrends without competing for internal capital.
The New Brands: Technologies and Aerospace
Following the June 29 separation, the two resulting companies will operate with distinct strategic focuses and market identities. Industry research indicates that the automation business, now branded as Honeywell Technologies, will retain the legacy Nasdaq ticker “HON.” This entity is positioned to lead the industrial transition from automation to autonomy, focusing heavily on artificial intelligence-led industrial systems, building automation, and mission-critical software.
Conversely, the aviation business will launch as Honeywell Aerospace and trade on the Nasdaq under the new ticker “HONA.” Operating as one of the largest publicly traded, pure-play aerospace suppliers, Honeywell Aerospace will target the future of aviation. According to industry data, the division currently generates approximately $15 billion in annual sales and will focus its independent efforts on aircraft electrification, autonomous flight, and defense applications.
Leadership Perspective
Company leadership emphasized that the rebranding is designed to respect the conglomerate’s extensive history while pivoting toward modern technological demands. In the official press release, Honeywell Chairman and CEO Vimal Kapur highlighted the significance of the transition.
“Today marks another defining moment in our transformation into two independent, focused companies. Drawing on Honeywell’s century-long legacy, these new brand identities honor our history while reflecting the bold vision and strategic focus that will define Honeywell Technologies and Honeywell Aerospace as standalone companies.”
, Vimal Kapur, Chairman and CEO of Honeywell
The Road to the Spin-Off
The dissolution of the Honeywell conglomerate has been a multi-year process driven by internal strategic reviews and external market pressures. In November 2024, Elliott Investment Management acquired a $5 billion stake in the company, publishing a letter that urged the board to simplify its structure to unlock shareholder value. By February 2025, Honeywell’s Board of Directors formalized the plan to separate into three independent companies: Automation, Aerospace, and Advanced Materials.
The first phase of this massive restructuring was completed in October 2025, when Honeywell successfully spun off its Advanced Materials business. That entity now operates as a standalone public company named Solstice Advanced Materials, trading under the ticker “SOLS.”
Financial Implications
Prior to the upcoming aerospace spin-off, Honeywell’s total market value is estimated at approximately $150.72 billion, with an estimated brand value of $18 billion built over 140 years of operation. Financial analysts at Wolfe Research have previously projected that a “sum-of-the-parts” valuation for the post-split entities could reach a significant premium over Honeywell’s historical trading range, drawing comparisons to the highly lucrative 2024 spin-off of GE Vernova.
AirPro News analysis
We view Honeywell’s breakup as a definitive marker in the ongoing $1.2 trillion U.S. industrial divestiture trend. By following the blueprint laid out by General Electric and Johnson & Johnson, Honeywell is positioning its aerospace and automation divisions to be significantly more agile. As separate entities with distinct balance sheets, both Honeywell Technologies and Honeywell Aerospace can more easily pursue targeted mergers and acquisitions. Without the burden of competing for internal capital, Honeywell Aerospace is now uniquely positioned to aggressively fund the electrification of aircraft, while Honeywell Technologies can double down on artificial intelligence and industrial autonomy.
Frequently Asked Questions (FAQ)
When does the Honeywell Aerospace spin-off take effect?
The aerospace division will officially spin off into an independent, publicly traded company on June 29, 2026.
What will the new stock tickers be?
Honeywell Technologies (the automation business) will retain the legacy ticker “HON,” while Honeywell Aerospace will trade under the new ticker “HONA.”
What happened to Honeywell’s Advanced Materials business?
The Advanced Materials division was successfully spun off in October 2025 as Solstice Advanced Materials, which currently trades under the ticker “SOLS.”
Sources
Photo Credit: Honeywell
MRO & Manufacturing
Sopra Steria to Acquire Daher’s Aerospace Manufacturing Unit in 2026
Sopra Steria plans to acquire Daher’s Manufacturing Engineering business to expand aerospace production capabilities and strengthen Airbus collaboration.
This article is based on an official press release from Sopra Steria.
On May 28, 2026, European technology and consulting major Sopra Steria announced it has entered into exclusive negotiations to acquire the Manufacturing Engineering business of Daher Industrial Services, a subsidiary of the French aerospace conglomerate Group Daher. According to the official press release, the proposed acquisition aligns with Sopra Steria’s broader strategy to build comprehensive technological and engineering capabilities across the European aerospace sector.
The targeted unit specializes in optimizing aerospace production processes and has served as a strategic partner to Airbus since 1995. Industry research reports indicate that the unit generated more than €42 million in revenue in 2025 and employs over 360 people, primarily based in France. The financial terms of the transaction have not been publicly disclosed.
Subject to customary regulatory approvals and consultations with employee representative bodies, the companies expect to finalize the transaction in the second half of 2026. We view this development as a significant indicator of ongoing consolidation within the aerospace digital engineering space.
Strategic Expansion in Aerospace Engineering
Sopra Steria, which reported a global revenue of €5.6 billion in 2025 and employs approximately 51,000 people across nearly 30 countries, has been actively expanding its footprint in the aerospace and defense sectors. The company previously acquired CS Group to bolster its secure infrastructure and engineering programs, and this latest move signals a continued focus on industrial optimization.
Deepening the Airbus Partnership
The acquisition is designed to elevate Sopra Steria’s aerospace business by expanding its capacity in critical Manufacturing engineering processes. According to industry research, the Daher unit focuses on two vital phases of aerospace manufacturing: the pre-production preparatory phase and production ramp-up efficiency. By integrating these capabilities, Sopra Steria aims to offer end-to-end skills to major European aerospace programs.
“The acquisition allows the company to offer comprehensive, end-to-end skills to major European aerospace programs,” notes recent industry research analyzing the deal.
The global aerospace industry is currently facing immense pressure to accelerate aircraft production to meet post-pandemic travel demand. Sopra Steria is positioning itself as a vital technological partner to help manufacturers, particularly Airbus, meet these accelerating production paces and exacting industrial standards.
Daher’s Strategic Realignment
For Group Daher, the divestment of its Manufacturing Engineering unit represents a strategic realignment toward its core competencies. While the company is stepping away from this specific engineering niche, it remains heavily invested in aerospace logistics and its own aircraft manufacturing operations, which include the TBM and Kodiak aircraft families.
Focus on Logistics and Aircraft Manufacturing
Divesting the engineering unit is expected to allow Daher to concentrate capital on massive logistics and manufacturing scale-ups. In early 2026, Daher renewed and expanded a significant logistics contract with Airbus Atlantic. According to industry data, this contract runs from 2026 to 2031 and involves managing the West Hub in Montoir-de-Bretagne. Daher aims to triple logistics volumes at this site to support the production ramp-up of the Airbus A320, A330, and A350 programs.
Aggressive M&A and Financial Health
The proposed acquisition of Daher’s engineering unit is not an isolated event for Sopra Steria. The announcement follows closely on the heels of another strategic move. Industry research highlights that Sopra Steria recently entered exclusive negotiations to acquire Digital Product Simulation (DPS), a Paris-based digital engineering consulting firm.
DPS, which generated approximately €12 million in revenue in 2025, is being acquired through Sopra Steria’s subsidiary, CIMPA. Alongside these aggressive Mergers and Acquisitions activities, Sopra Steria recently announced a €40 million share buyback program. This follows a previous €150 million buyback concluded in January 2025, signaling strong financial health and a commitment to shareholder returns.
AirPro News analysis
We observe that IT and digital consulting firms like Sopra Steria are increasingly encroaching on traditional industrial engineering spaces. As the aerospace industry grapples with supply chain bottlenecks and ambitious production targets, digitizing and optimizing the factory floor has become a critical prerequisite for success. By acquiring established engineering units with deep-rooted OEM relationships, such as the 30-year partnership between Daher’s unit and Airbus, tech firms are effectively buying their way into the heart of the aerospace supply chain. This multi-pronged consolidation strategy, evidenced by the concurrent moves for Daher’s unit and DPS, suggests that the lines between digital IT consulting and physical manufacturing engineering will continue to blur.
Frequently Asked Questions
When is the acquisition expected to close?
According to the press release, the transaction is expected to be finalized in the second half of 2026, pending Regulations and employee consultations.
How large is the business being acquired?
Industry research indicates the Manufacturing Engineering business of Daher Industrial Services employs over 360 people and generated more than €42 million in revenue in 2025.
Why is Daher selling this unit?
Daher is divesting this unit to focus on its core competencies, specifically its massive aerospace logistics contracts and its own aircraft manufacturing operations (TBM and Kodiak).
Sources
Photo Credit: Sopra Steria
MRO & Manufacturing
Stratasys to Acquire Markforged for $42.5 Million Expanding 3D Printing Tech
Stratasys announces acquisition of Markforged for $42.5M to enhance aerospace and defense 3D printing capabilities, closing in late 2026.
This article is based on an official press release from Stratasys.
On May 27, 2026, Stratasys Ltd. announced a definitive agreement to acquire Markforged, Inc., a wholly owned subsidiary of Nano Dimension, in an all-cash transaction valued at $42.5 million. According to the company’s press release, the acquisitions is strategically designed to bolster Stratasys’s capabilities within the aerospace, defense, and industrial manufacturing sectors.
The deal will see Stratasys integrate Markforged’s advanced composite 3D printing technologies and its comprehensive software ecosystems. Included in the acquisition are Markforged’s polymer, composite, and metal extrusion portfolios, its proprietary Continuous Carbon Fiber (CCF) technology, and “The Digital Forge” software platform. Notably, Nano Dimension will retain Markforged’s Metal Binder Jetting product line.
Subject to customary closing conditions and regulatory approvals, the transaction is projected to close in the second half of 2026. This move marks a significant step in the ongoing consolidation of the additive manufacturing industry, leveraging Stratasys’s strong balance sheet to expand its technological footprint.
Strategic Expansion in Aerospace and Defense
According to the official announcement, Stratasys expects the integration of Markforged’s Continuous Carbon Fiber (CCF) technology to directly support high-requirement use cases in aerospace and defense. CCF technology enables manufacturers to produce parts that are significantly lighter and stronger than traditional Fused Filament Fabrication (FFF) alternatives. Stratasys highlighted that these capabilities are particularly suited for tooling, fixtures, ground support equipment, and select production parts.
Beyond hardware, the acquisition brings “The Digital Forge” into the Stratasys portfolio. This integrated software platform offers complementary capabilities, including advanced simulation, part management, and automated print optimization, which are critical for secure remote printing and rigorous part inspection in highly regulated industries.
Financial Synergies and Market Reach
Industry data indicates that Markforged generated approximately $70 million in revenue in 2025, a figure that includes the Metal Binder Jetting line being retained by Nano Dimension. Stratasys stated in its release that it expects the acquisition to be accretive to gross margins and to deliver meaningful cost synergies. The company projects a positive adjusted EBITDA contribution from the acquisition within the first year following the close of the transaction.
“This acquisition further advances our capabilities to meet customers’ growing needs in critical areas such as defense and aerospace at a time when additive manufacturing continues to displace traditional manufacturing for high requirement applications in production,” said Dr. Yoav Zeif, CEO of Stratasys, in the press release. “We believe that our teams can immediately reinvigorate revenue growth by adding Markforged, Inc.’s products and software systems as we leverage our leading partner networks.”
Industry Consolidation and Restructuring
For Nano Dimension, the divestiture serves primarily as a strategic cost-reduction measure. The company expects the sale to reduce its annualized cash burn by approximately $15 million through direct operating savings and indirect cost reductions. The transaction also highlights the steep valuation adjustments occurring within the 3D printing sector; Nano Dimension originally acquired Markforged in April 2025 for $116 million.
In a statement regarding the sale, Nano Dimension leadership emphasized that the move aligns with their broader corporate restructuring efforts.
“We are pleased to have reached an agreement with Stratasys that we believe positions MarkForged for continued growth and success under its ownership,” stated David Stehlin, CEO of Nano Dimension. “This transaction represents a deliberate step in advancing Nano Dimension’s three phase strategic plan and accelerating Phase 3 execution.”
AirPro News analysis
We observe a profound historic role reversal in this transaction. In 2023, Nano Dimension launched multiple unsolicited, hostile takeover bids to acquire Stratasys, all of which ultimately failed. Today, the negotiating power has entirely shifted. Stratasys recently reported holding $270 million in cash with zero outstanding debt, positioning it as a primary consolidator in the market. By contrast, Nano Dimension has been forced to aggressively divest and restructure, particularly following the July 2025 bankruptcy of Desktop Metal, another major acquisition it had made for $179.3 million.
Stratasys is clearly utilizing its robust balance sheet to capitalize on distressed valuations across the sector. Having recently acquired Nexa3D’s IP portfolio and remaining hardware assets, Stratasys is systematically absorbing complementary technologies at a fraction of their historical market premiums. We anticipate this trend of well-capitalized legacy players absorbing the assets of over-extended newer entrants will continue to define the additive manufacturing landscape through the end of the decade.
Frequently Asked Questions
How much is Stratasys paying for Markforged?
Stratasys is acquiring Markforged in an all-cash transaction valued at $42.5 million, subject to customary adjustments.
Are all Markforged assets included in the sale?
No. While Stratasys is acquiring the polymer, composite, and metal extrusion portfolios, as well as “The Digital Forge” software, Nano Dimension will retain Markforged’s Metal Binder Jetting product line.
When is the acquisition expected to close?
The deal is projected to close in the second half of 2026, pending regulatory approvals and customary closing conditions.
Why is Nano Dimension selling Markforged?
The sale is part of Nano Dimension’s strategic restructuring to reduce costs. The company expects the divestiture to reduce its annualized cash burn by approximately $15 million.
Sources
Photo Credit: Markforged
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