Investing.com -- Airbus (EPA:AIR) shares rose more than 4% Friday after the aircraft manufacturing commercial company posted better-than-expected first-quarter results and reaffirmed its 2025 guidance, easing investor concerns about persistent supply chain disruptions and the potential impact of global trade tariffs.
The company reported adjusted EBIT of €624 million for the first quarter of 2025, exceeding the consensus estimate of €602 million.
Revenue reached €13.5 billion, up 6% from a year earlier and ahead of expectations across all three divisions.
Net income and free cash flow also beat forecasts, with Airbus reporting a free cash outflow of just €0.3 million, a sharp improvement from the €1.7 billion outflow projected by Vertical Research and a €1.5 billion year-over-year increase.
While commercial aircraft deliveries were down 4% year-over-year, Airbus maintained its full-year delivery target of around 820 aircraft, as well as guidance for €7 billion in adjusted EBIT and €4.5 billion in free cash flow.
The company cited engine delays, particularly with CFM’s LEAP engines, as a reason for the slow start.
Seventeen aircraft were awaiting engines in Toulouse. Airbus expects deliveries to be heavily backloaded, with improvement anticipated in the second half of the year.
The company confirmed that tariff impacts are excluded from the 2025 forecast. Executives said the direct effect of tariffs is largely confined to the Mobile, Alabama, facility, where European-built components are assembled for U.S. airlines.
Airbus is exploring mitigation strategies such as delivery reallocation, duty drawbacks, and pricing adjustments.
The company also noted that previous U.S. tariffs on European aircraft deliveries had been managed without significant disruption.
Bernstein estimates the tariff cost at €170 million in 2025, decreasing to €100 million in 2026 and €50 million in 2027, assuming current policies hold.
Despite ongoing uncertainty, all three research firms reiterated a positive outlook for Airbus. BofA Securities noted that the company’s supply chain remains stable and said the impact of tariffs appears manageable within current guidance. It raised its price target to €237 from €233.
Bernstein lifted its target to €198 from €196, citing improved visibility and sustained delivery momentum.
Vertical Research kept its target at €165, saying Airbus remains one of the more resilient names in aerospace given its strong backlog, €11 billion net cash position, and favorable defense market exposure.
Analysts across the board highlighted that investors are comfortable with Airbus excluding tariffs from its guidance for now, but warned that broader macroeconomic risks tied to trade disputes and slowing global growth could still weigh on future demand.
The International Monetary Fund recently cut its 2025 global GDP growth forecast by 50 basis points, adding a layer of caution.