Airbus SE

Earnings Performance: Airbus reported Q1 2025 revenues of €13.5 billion, a 6% year-over-year increase. EBIT adjusted stood at €0.6 billion, stable compared to Q1 2024. However, free cash flow before customer financing was negative €0.3 billion due to planned inventory buildup, illustrating challenges in cash generation despite revenue growth.

Delivery Outlook: The company delivered 136 aircraft in Q1, with expectations that deliveries will remain back-end loaded for 2025 due to supply chain issues, particularly with engine supplier CFM International. They anticipate that the delivery profile will soften in Q2, with a likely lower year-over-year comparison, leading to a cautious outlook for the first half of the year.

Tariff Impact and Risks: Airbus stated that their guidance for 2025 excludes the impact of potential tariffs, which remain volatile and can impact costs significantly. While they aim to mitigate these effects through regulatory mechanisms and optimizing logistics, the shifting landscape of tariffs is viewed as a risk that could influence future earnings and cash flows.