Airbus: May Orders Stall, Deliveries Dip, But Backlog Supports Long-Term Upside

Airbus SE is experiencing continued supply chain disruptions, particularly engine shortages, hindering its ability to increase aircraft deliveries despite a strong order backlog exceeding 8,600 aircraft. May 2025 saw zero new orders, but this is typical ahead of major airshows. While deliveries were slightly down year-over-year, the company's robust backlog supports a Buy rating, suggesting long-term investment appeal as supply issues are expected to ease.

Analysis

Airbus SE (OTCPK:EADSY, XPAR:AIR) is currently experiencing significant operational headwinds due to ongoing supply chain disruptions, particularly engine shortages, which are limiting its ability to accelerate aircraft deliveries despite a robust demand environment. This demand is underscored by a substantial order backlog exceeding 8,600 aircraft. The reported zero new orders for May 2025 is considered a typical pre-airshow lull by the analyst and not indicative of weakening long-term demand. However, aircraft deliveries in May showed a slight year-over-year decrease, directly reflecting these persistent production challenges, especially noted in the first half of the year. Despite these near-term constraints, the analyst maintains a 'Buy' rating on Airbus (referenced as EADSF), supported by the strong backlog and the expectation that supply chain issues will eventually ease, presenting long-term investment appeal. This outlook is further supported by a moderately positive sentiment score of 0.4 and an optimistic tone concerning the company's prospects, with the analyst also disclosing a beneficial long position in AIR.PA.

Key Decisions for Investors

• Investors should consider the current production challenges as a temporary impediment, with the extensive backlog and anticipated easing of supply chain issues supporting a long-term positive outlook for Airbus, consistent with the analyst's 'Buy' rating.
• It is crucial to monitor Airbus's progress in mitigating engine shortages and observe the ramp-up in aircraft deliveries, as these are key catalysts for realizing the intrinsic value of its substantial order book.
• While the May 2025 absence of new orders is noted as typical, upcoming major airshows should be closely watched for new order intake, which would serve to reaffirm sustained demand and market confidence in the commercial aircraft sector.