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Investing.com -- Airbus cut its 2025 commercial aircraft delivery goal to about 790 jets on Wednesday, citing a supplier quality problem tied to fuselage panels on its A320 family. The company had previously aimed for roughly 820 deliveries this year.
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Despite the delivery downgrade, Airbus kept its adjusted operating profit target of around €7 billion and its free cash flow goal of about €4.5 billion.
Airbus shares rose 2.4% in early Paris trading.
The A320, which recently surpassed Boeing’s 737 as the most-delivered aircraft model, is at the center of the disruption following newly identified defects in structural panels.
Airbus engineers have uncovered flaws across a wider range of A320 fuselage panels as they prepare to examine hundreds of aircraft. About 40% of the affected jets remain on the production line, Reuters reported, citing a presentation shown to airlines.
The components, made by Sofitec Aero, were found to have incorrect thickness due to issues linked to stretching and milling processes. The industrial setback emerged shortly after a separate software-related update involving thousands of A320s over the weekend.
Chief Executive Guillaume Faury said on Tuesday that the fuselage panel issue also weighed on November deliveries. The company will release its monthly data on Friday.
Jefferies analyst Chloe Lemarie said the disruption arrives late in what was already a back-loaded year, forcing Airbus to trim its output plan.
She noted that the inspection process is the main reason for the cut, but added that “the 30 aircraft removed from the delivery guide this year are not all expected to require a parts change, but for now only require a non-destructive test to be performed."
The brokerage reduced its Airbus price target to €230 from €235, and cut its 2025 delivery assumption to 917 from 957 to reflect the updated guidance. Also, it now expects EBIT to land closer to the €7 billion mark.
Lemarie added that elevated inventory levels are likely to persist into year-end and trimmed the free cash flow (FCF) estimate accordingly to €3.8 billion, though she maintained expectations for a strong net cash position and a planned €1 billion buyback in 2026
Jefferies also cut its earnings per share (EPS) estimate by 4% in 2025 and by 6% in 2026.