Airbus: How Is Boeing's Rival Performing On Orders And Deliveries?

Airbus has demonstrated strong stock performance, gaining nearly 60% over the past year, underpinned by a substantial backlog of over 8,700 aircraft and robust August 2025 orders totaling 99 jets with a net value of $7.4 billion. While August deliveries improved to 61 aircraft, the company faces a critical challenge in ramping up production to meet its 820 annual target, primarily due to engine supply constraints. The outlook remains bullish, with expectations for improved delivery rates as these supply chain issues abate, which would further capitalize on its significant order book.

Analysis

Airbus SE exhibits a robust commercial position, underscored by a significant aircraft backlog exceeding 8,700 units and strong recent order momentum. The company secured 99 net new orders in August, primarily from Avolon, with a net value of $7.4 billion, representing a year-over-year increase and indicating sustained demand. Operationally, while August deliveries improved year-over-year to 61 aircraft, the company faces a considerable execution challenge in meeting its full-year guidance of 820 deliveries. This implies a required acceleration in production for the remainder of the year. The primary bottleneck identified is ongoing engine supply issues, which are constraining the company's ability to convert its massive order book into revenue. Despite these production hurdles, the stock has performed exceptionally well, gaining nearly 60% over the past 12 months, suggesting market optimism that these supply chain constraints will eventually ease and unlock higher production rates.

Key Decisions for Investors

• Investors should closely monitor Airbus's monthly delivery reports as the primary indicator of its ability to resolve production bottlenecks and meet its 820-jet annual target.
• The investment thesis is heavily contingent on the easing of engine supply constraints; any news from Airbus or its key suppliers regarding supply chain improvements or setbacks should be considered a critical catalyst.
• Given the stock's 60% appreciation in the last year, current holders may consider if the positive outlook is fully priced in, while prospective investors should weigh the execution risk of the production ramp-up against the strong underlying demand.