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Investing.com -- Airbus (EPA:AIR) shares rose more than 2% on Thursday after the European planemaker reported stronger-than-expected third-quarter earnings, driven by solid performances across all divisions, and maintained its full-year outlook despite cutting its A220 jet production target.
The Toulouse-based company posted revenue of €17.83 billion for the three months to September, up 14% from a year earlier and above the consensus estimate of €17.59 billion, supported by higher commercial aircraft deliveries.
Adjusted earnings before interest and tax rose 38% to €1.94 billion, about 10% above company-compiled consensus, according to Morgan Stanley Research.
Chief Executive Guillaume Faury said the results “reflect the level of commercial aircraft deliveries and a solid performance in the Defence and Space and Helicopters businesses.”
By segment, revenue in Airbus’ commercial aircraft division increased 12% to €13.06 billion, helicopters rose 16% to €1.96 billion, and defence and space grew 17% to €3.06 billion.
The core commercial aircraft unit posted a 45% increase in adjusted EBIT to €1.56 billion, while the group EBIT margin improved to 10.9% from 9.0% a year earlier.
Morgan Stanley said all divisions contributed to the beat, with Helicopters “the standout,” reporting revenues 10% ahead of expectations and a margin of 12.6%, 180 basis points above consensus, driving EBIT 28% above forecasts.
Defence and Space achieved a 14% EBIT beat, while Airbus Commercial margins were 100 basis points higher than expected at 11.9%.
Net income for the quarter rose 14% to €1.12 billion, while reported EBIT climbed 42% to €1.75 billion. Free cash flow before customer financing reached €696 million, compared with a negative €316 million a year earlier.
Airbus reaffirmed its 2025 guidance, targeting around 820 aircraft deliveries, adjusted EBIT of about €7 billion, and free cash flow before customer financing of roughly €4.5 billion.
Morgan Stanley noted that the company’s financial targets now “include expected tariff impact,” which had previously been excluded, saying this “reduces an element of tariff uncertainty.”
The manufacturer adjusted its production plan for the A220 narrowbody, now aiming to reach a rate of 12 aircraft per month in 2026, below the prior goal of 14. Airbus attributed the change to “the current balance between supply and demand.”
Faury said during a media call the adjustment was linked to “planned integration of Spirit Aero and some airlines waiting for upgraded versions of the GTF programme.”
Morgan Stanley described the change as “disappointing given it counters the ramp-up seen in other programmes,” but added that it was “unlikely to materially impact consensus forecasts.”
The U.S. investment bank said the quarter was a “strong print” and maintained its Overweight rating on the stock with a €231 price target, compared with Airbus’ closing price of €208.40 on Wednesday.
Airbus said it continues to “expand industrial capacity to support the commercial aircraft ramp-up” and cited “ongoing progress in creating a new European space leader with Leonardo and Thales.”