Airbus confronts a pivotal week with a lawsuit over engine delays, weak Q1 results, and a dividend payout as it struggles with production targets and a depressed stock price.
A record order book stands in stark contrast to near-empty assembly halls at Airbus, setting the stage for a pivotal few days that will test investor confidence. The European aerospace giant faces a confluence of critical events: a dividend payment, first-quarter results, and a major lawsuit against a key supplier, all against a backdrop of severe production delays.
The company’s shares closed at EUR 42.60 on Friday, languishing roughly 13% below their year-start level and about 10% under the 200-day moving average. A deeply oversold technical picture is underscored by a Relative Strength Index (RSI) reading of just 10.9.
Legal Escalation Over Engine Shortages
At the heart of the operational gridlock is a dispute with engine maker Pratt & Whitney. Airbus has escalated the conflict by filing a damages lawsuit against the RTX Corp subsidiary over chronic delivery failures of its Geared Turbofan engines. The company alleges that hundreds of completed narrowbody aircraft are sitting idle on tarmacs, awaiting power plants.
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The PW1000G engine family is the sole option for the A220 series and powers approximately 40% of the A320neo fleet. Airbus accuses the US supplier of diverting engines to more lucrative repair shops instead of prioritizing new aircraft production lines. This move for unspecified compensation significantly ratchets up pressure on the crucial supplier.
A Weak Quarter Sets a Challenging Tone
All eyes will be on management during the analyst call on April 28 when first-quarter 2026 figures are presented. Expectations are subdued, driven by persistent supply chain issues. Morgan Stanley forecasts revenue of EUR 12.4 billion, an 8% decline year-over-year. Adjusted EBIT is projected at a meager EUR 311 million, with a margin of just 2.5%.
The primary driver is a sharp drop in deliveries. Airbus is estimated to have handed over only about 114 aircraft in Q1, compared to 136 in the same period last year—a 16% fall. Lower production volumes, an unfavourable aircraft mix, and higher research spending are weighing on profitability.
Not all divisions are struggling. The Defence & Space segment is expected to post an 8% revenue increase for the quarter, with Helicopters growing around 4%, both maintaining stable margins.
Dividend Payout Precedes a Daunting Catch-Up
Before the quarterly results, shareholders will receive a payout. The stock will trade ex-dividend on April 21, with a payment of EUR 3.20 per share for the 2025 financial year following on April 23. This exceeds the combined ordinary and special dividend of EUR 3.00 paid the previous year.
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The real challenge lies in the full-year outlook. Airbus is targeting approximately 870 deliveries for 2026, alongside an adjusted EBIT of around EUR 7.5 billion and free cash flow before customer financing of roughly EUR 4.5 billion. The weak start means the company must now deliver an average of about 252 aircraft per quarter over the remaining nine months—a substantial acceleration from the current pace.
CEO Guillaume Faury has consistently pointed to persistent Pratt & Whitney engine shortages as the central bottleneck. How management plans to close this gap will be the critical question for analysts. If the production stall continues, the annual target moves out of reach, and even the planned ramp-up to 75 aircraft per month by the end of 2027 could be jeopardized.
Despite the operational headaches, demand remains robust. In March 2026 alone, Airbus secured 331 new orders, pushing its total order backlog to a record 9,037 aircraft. The problem is not a lack of customers, but an inability to build planes fast enough.
The upcoming week, culminating in the April 28 earnings call, will reveal whether Airbus can chart a credible recovery path or if it must quietly retreat from its ambitious annual goals.
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