Follow EADSY to never miss an important update.
Airbus has alerted customers to a quality flaw inside the fuselage structure of more than 500 A321neo jets. The issue involves parts that may not resist corrosion as well as they should, which could eventually require extra inspections or repairs for airlines using the planes.
This is a concern because the A321neo is the company's best-selling model and the primary engine of its profit growth. While the stock fell about 1 percent on the news, the real risk for long-term owners is whether this defect slows down the company's plan to ramp up production to 75 jets per month by 2027. If the fix requires pulling planes off the assembly line, it could delay deliveries and the cash that comes with them.
Source: Reuters
Airbus is preparing a proposal to sell Eurofighter Typhoon jets to Portugal as the country looks to upgrade its air force. The company is positioning the European-built plane as a better fit than the American F-35 made by Lockheed Martin. While commercial planes drive most of the value here, winning defense contracts provides steady, long-term revenue that is less sensitive to travel trends. A win in Portugal would help keep the Eurofighter production lines busy as the company waits for larger orders from other nations.
Source: Reuters
Airbus delivered 9 percent more jets in the first eight months of the year compared to the same period last year. The company is still working toward its full-year goals, though it had to slow down deliveries of the A330, a larger twin-aisle plane, due to a separate quality issue found earlier in the month.
Deliveries are the most important number for an aircraft maker because that is when airlines pay the bulk of the purchase price. Staying on track despite factory hiccups shows the company is managing its complex supply chain well, even as it deals with the newer fuselage issues affecting its smaller jets.
Source: Reuters
Management consistently sets a bar they can clear, delivering eight straight beats while growing revenue nearly 30 percent. This track record makes their long-term production forecasts much easier to trust.
| Expectation | |
|---|---|
| EPS | $0.58 |
| Revenue | $22.79B |