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1. Company Snapshot

1.a. Company Description

Airbus SE engages in the designing, manufacturing, and delivering aerospace products, services, and solutions worldwide.It operates through three segments: Airbus, Airbus Helicopters, and Airbus Defence and Space.The Airbus segment develops, manufactures, markets, and sells commercial jet aircraft of approximately 100 seats; and regional turboprop aircraft and aircraft components, as well as provides aircraft conversion and related services.


The Airbus Helicopters segment engages in the development, manufacturing, marketing, and sale of civil and military helicopters; and provision of helicopter related services.The Airbus Defence and Space segment designs, develops, delivers, and supports military aircraft, such as combat, mission, transport, tanker aircraft, and their associated services; and offers unmanned aerial systems.This segment also offers civil and defense space systems for telecommunications, earth observations, navigation, science, and orbital systems; missile systems; and space launcher systems, as well as services around data processing from platforms, secure communication, and cyber security.


The company was formerly known as Airbus Group SE and changed its name to Airbus SE in April 2017.Airbus SE was incorporated in 1998 and is based in Leiden, the Netherlands.

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1.b. Last Insights on AIR

Airbus' recent performance has been driven by solid order momentum and improved profitability. The company's expanding order book and steady progress on key aerospace projects have fueled sentiment that it is well-positioned for growth. Analysts have upgraded their price targets, reflecting increased confidence in the company's fundamentals. However, some analysts are cautious regarding future growth and valuation. Airbus' recent financial results and upbeat guidance have also contributed to the positive sentiment. Additionally, the company's strong operational performance has been a key driver of its recent success.

1.c. Company Highlights

2. Airbus' Q3 2025 Earnings: Strong Revenue Growth and Margin Resilience

Airbus reported a robust financial performance for the nine months ended September 2025, with revenues increasing to EUR 47.4 billion, up 7% year-on-year. EBIT adjusted stood at EUR 4.1 billion, reflecting strong commercial aircraft deliveries and solid performance at Airbus Defense and Space and Airbus Helicopters. Earnings per share (EPS) came in at EUR 1.67, beating analyst estimates of EUR 1.62. The company's net cash position stood at EUR 7 billion as at the end of September, with liquidity remaining very strong at around EUR 30 billion.

Publication Date: Oct -30

📋 Highlights
  • Production Ramp-Up Target:: Airbus aims to achieve a rate of 75 A320 family aircraft per month by 2027, supported by 10 A321 final assembly lines across four global sites.
  • Financial Performance:: Nine-month 2025 revenues reached EUR 47.4 billion (+7% YoY), with EBIT adjusted at EUR 4.1 billion, driven by commercial aircraft deliveries and strong defense/space performance.
  • Backlog Growth:: Total commercial aircraft backlog stands at 8,665 units, with 75% attributed to the A321, and gross orders of 610 aircraft in nine months, including 116 in Q3.
  • Strong Liquidity and Credit Rating:: Net cash position of EUR 7 billion and liquidity of EUR 30 billion, alongside Moody’s upgrade to A1 with a stable outlook, reflecting robust financial management.
  • Supply Chain Challenges:: Engine delivery issues resulted in 32 gliders by September 2025, but recovery is progressing; Spirit’s Section 15 integration delays pushed A350 ramp-up to a rate of 12 by 2028.

Segmental Performance

The commercial aircraft business revenues increased 3% year-on-year, driven by higher deliveries and services growth. EBIT adjusted was EUR 3.3 billion, with favorable hedge rates and lower R&D expenses offsetting an unfavorable mix due to increased deliveries. Helicopter deliveries increased 16% to 218, with revenues rising to EUR 5.7 billion. EBIT adjusted increased to EUR 495 million, driven by services growth and higher deliveries. Defense and Space revenues increased 17% to EUR 8.9 billion, driven by higher volumes across all business lines.

Guidance and Outlook

Airbus maintained its 2025 guidance, assuming no additional disruptions to global trade or air traffic. The company targets 820 commercial aircraft deliveries, EBIT adjusted of around EUR 7 billion, and free cash flow before customer financing of around EUR 4.5 billion. For 2026, Airbus is targeting a ramp-up trajectory consistent with previous guidance, with rate 75 on the A320 in 2027, rate 12 on the A350 in 2028, and rate 6 on the A330 in 2029.

Valuation and Metrics

With a P/E Ratio of 33.27 and an EV/EBITDA of 16.98, Airbus' valuation reflects a premium for its strong market position and growth prospects. The company's ROE stands at 23.56%, indicating a strong return on equity. Analysts estimate next year's revenue growth at 11.0%, which may justify the current valuation. However, investors should monitor the company's ability to execute on its production ramp-up and manage supply chain tensions.

Supply Chain and Production

Guillaume Faury stated that engines are the main area of attention, but the rest of the supply chain is performing better than in 2024 and previous years. The company is working closely with engine manufacturers to deliver on its 2025 commitments, and expects to receive engines in the weeks to come to reach its objective of zero gliders by the end of the year.

3. NewsRoom

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CGTN: What makes cooperation between China and France a two-way success

Dec -05

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Why Airbus Stock Stalled on Thursday

Dec -05

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GA Telesis Secures Five-Year Landing Gear Overhaul Agreement with Major U.S. Carrier

Dec -04

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What Has BA Stock Done For Investors?

Dec -04

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FTC approves Boeing for Spirit AeroSystems acquisition, but with a few conditions

Dec -04

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Could AAL’s Swift A320 Software Fix Recast American Airlines’ Operational Reliability Story?

Dec -04

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Titan Aviation Leasing Delivers First of Two Airbus A330-200P2F to JD Airlines

Dec -04

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The FUTR Corp Appoints AI Pioneer, Damian Fozard to its Advisory Board to Advance Next-Generation Financial Agent Development

Dec -04

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.90%)

6. Segments

Airbus (Includes Holding Function and Bank Activities)

Expected Growth: 4.5%

Airbus SE's holding and banking activities are expected to grow driven by increasing demand for commercial aircraft, expansion in digital services, and growing revenue from helicopter and space segments.

Airbus Helicopters

Expected Growth: 5.4%

Airbus Helicopters will benefit from a growing demand for civil helicopters, driven by increasing use in emergency medical services, search and rescue, and corporate transportation.

Airbus Defence and Space

Expected Growth: 6.2%

Airbus Defence and Space’s military aircraft and space systems benefit from government investments in defence and space exploration, driving growth in a market led by increasing global security concerns and the need for advanced technologies.

Eliminations

Expected Growth: 4.4%

Airbus SE Eliminations removes consolidation effects, driven by increasing demand for commercial aircraft and growing aftermarket services, with a focus on digitalization and sustainability.

7. Detailed Products

A320 Family

A series of short- to medium-haul commercial passenger airliners

A330 Family

A series of wide-body, twin-engine, commercial airliners

A350 XWB

A series of wide-body, twin-engine, commercial airliners

A380

A double-deck, wide-body, four-engine commercial airliner

H125

A single-engine, light helicopter

H130

A single-engine, light helicopter

H145

A twin-engine, light helicopter

H160

A twin-engine, medium helicopter

C295

A twin-turboprop, military transport aircraft

A330 MRTT

A multi-role tanker transport, aerial refueling aircraft

Eurofighter Typhoon

A twin-engine, multirole fighter jet

Space Systems

A range of satellites, launch vehicles, and ground systems

UAVs (Unmanned Aerial Vehicles)

A range of unmanned aerial vehicles for military and civilian use

Cybersecurity Solutions

A range of cybersecurity solutions for governments and enterprises

8. Airbus SE's Porter Forces

Forces Ranking

Threat Of Substitutes

Airbus faces moderate threat from substitutes, as customers have limited alternatives to commercial aircraft. However, the increasing popularity of business jets and private aviation could pose a threat to Airbus's market share.

Bargaining Power Of Customers

Airbus's customers, primarily airlines, have limited bargaining power due to the high barriers to entry and the complexity of the aviation industry. This gives Airbus an upper hand in negotiations.

Bargaining Power Of Suppliers

Airbus relies on a diverse supplier base, which reduces the bargaining power of individual suppliers. However, key suppliers like engine manufacturers may still exert some influence over Airbus.

Threat Of New Entrants

The barriers to entry in the commercial aircraft industry are extremely high, making it difficult for new entrants to challenge Airbus's market position.

Intensity Of Rivalry

The commercial aircraft industry is highly competitive, with Airbus facing intense rivalry from Boeing. The two companies engage in frequent price wars, and the market is highly sensitive to price changes.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.80%
Debt Cost 7.45%
Equity Weight 59.20%
Equity Cost 11.69%
WACC 9.96%
Leverage 68.92%

11. Quality Control: Airbus SE passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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BAE Systems

A-Score: 5.7/10

Value: 2.4

Growth: 6.9

Quality: 4.8

Yield: 4.4

Momentum: 9.5

Volatility: 6.3

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A-Score: 5.0/10

Value: 1.1

Growth: 4.1

Quality: 7.2

Yield: 0.6

Momentum: 8.5

Volatility: 8.3

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Airbus

A-Score: 5.0/10

Value: 1.7

Growth: 5.6

Quality: 5.2

Yield: 1.2

Momentum: 8.5

Volatility: 7.7

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Thales

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Value: 2.0

Growth: 5.0

Quality: 4.2

Yield: 3.1

Momentum: 10.0

Volatility: 5.3

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Rheinmetall

A-Score: 4.9/10

Value: 0.2

Growth: 8.6

Quality: 6.3

Yield: 2.5

Momentum: 10.0

Volatility: 2.0

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Rolls-Royce

A-Score: 4.8/10

Value: 1.9

Growth: 6.4

Quality: 6.6

Yield: 0.6

Momentum: 9.5

Volatility: 3.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

196.7$

Current Price

196.7$

Potential

-0.00%

Expected Cash-Flows