Airbus holds annual targets, bets on year-end delivery surge

By Gianluca Lo Nostro, Joanna Plucinska and Florence Loeve

Oct 28 (Reuters) - Airbus maintained its full-year forecasts and production plans on Wednesday after reporting mixed third-quarter earnings, leaving investors focused on whether it can hit its annual aircraft-delivery target.

The world's largest planemaker stuck to its target of delivering around 870 aircraft this year, which would be its highest tally ever, and left production goals unchanged. It will need a record fourth quarter to reach that mark.

"Everybody will be watching to see if they can get to that 870 number, or whether sometime in December, they need to indicate that they can't get to that number," said Ronan Murphy, a director at Alton Aviation Consultancy. "They must have a view that they can still get close to it."

Airbus said adjusted operating profit reached €1.77 billion ($2 billion) in the three months to end-September, broadly matching the analysts' estimate in a poll compiled by the company. Revenue fell 2% to €17.47 billion, below the estimate of €17.91 billion.

Airbus' American Depositary Receipts were trading up 1% following its earnings report.

RAM- UP SKEPTICISM

Airbus traditionally delivers more aircraft in the final months of the year, but has previously been forced to cut delivery targets late in the year as engine shortages and other supply-chain constraints disrupted production.

Airbus says those pressures have recently begun to ease.

"Two years ago we postponed part of the ramp-up and we progressed at a slower pace towards the ramp-up for a number of reasons, including the engines. "We are no longer in that situation," CEO Guillaume Faury told reporters.

The two separate quality flaws detected on some A321neo and A330 jetliners have been identified and contained, with deliveries still flowing, Faury added.

Murphy cautioned that supply-chain pressures had eased but not disappeared.

"The delays have slowed down, but there are still delays from when things were originally," said Murphy.

INVENTORY READY

Free cash flow before customer financing since January was a negative €1.27 billion, reflecting higher inventories as Airbus prepared for a stronger delivery performance later in the year and ramped up production for year-end deliveries.

"We are close to the end of October. We have a high level of inventory," Faury said, projecting confidence that Airbus will meet its delivery target this year.

Rival Boeing highlighted production delays and supply-chain challenges on Tuesday, with CEO Kelly Ortberg saying the US planemaker would miss key production and jet delivery targets this year.

Airbus remains ahead of its US rival in deliveries this year, having handed over 547 aircraft so far in 2026 compared with Boeing's 475.

"With current production rates, and Boeing pushing back its pace of rate breaks on the MAX, we believe there is growing skepticism on the airframers' abilities to hit production targets over the next 2 years," RBC analysts said.

($1 = 0.8993 euros)

(Reporting by Joanna Plucinska in London, Gianluca Lo Nostro in Gdansk, Florence Loève in Paris; Editing by Matt Scuffham and Sanjeev Miglani)