Stock Markets June 30, 2026 12:23 PM

S&P Elevates Airbus to A+ Citing Large Cash Buffer and Strong Backlog Execution

Ratings agency points to roughly €15.6bn in free operating cash flow and a net cash position above €10bn as drivers of the upgrade

By Marcus Reed
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S&P Global Ratings upgraded Airbus' long-term rating to A+ from A and raised short-term and issue-level ratings, citing a strengthened cash position and sustained free operating cash flow. The agency highlighted cumulative free operating cash flow of about €15.6 billion for 2022-2025 and a net cash balance exceeding €10 billion as of December 2025. S&P expects Airbus to sustain strong cash generation while executing a backlog exceeding €600 billion, supporting a stable outlook.

S&P Elevates Airbus to A+ Citing Large Cash Buffer and Strong Backlog Execution
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Key Points

  • S&P upgraded Airbus' long-term rating to A+ from A, raised its short-term rating to A-1+, and lifted issue-level ratings to A+, assigning a stable outlook.
  • Airbus generated approximately €15.6 billion of cumulative free operating cash flow from 2022 through 2025 and held net cash above €10 billion as of December 2025.
  • The company carries a commercial aircraft backlog of 9,253 units as of May 2026 and targets higher production rates for the A320 and A350 families, supported by capacity expansions in Tianjin and Mobile.

S&P Global Ratings has raised the Netherlands-based aircraft maker's long-term credit rating to A+ from A and upgraded its short-term rating to A-1+. Issue-level ratings were also increased to A+, with the agency assigning a stable outlook.

The upgrade was driven by Airbus' recent cash performance. S&P highlighted that the company generated cumulative free operating cash flow of roughly €15.6 billion across 2022-2025. In addition, Airbus held a net cash position in excess of €10 billion as of December 2025, a balance S&P says provides a financial buffer against potential operational disruptions or setbacks.

Looking ahead, S&P expects Airbus to preserve at least this net cash level through the next three years while continuing to produce free operating cash flow well in excess of €4 billion per year as it fulfills its substantial order backlog. The ratings agency estimated the group's backlog at more than €600 billion.

Operationally, Airbus reported a commercial aircraft backlog of 9,253 units as of May 2026, evidence of persistent demand across most business divisions. The manufacturer has set production targets aimed at raising output for core programs: A320 family production is planned to reach between 70 and 75 aircraft per month by the end of 2027, while A350 output is targeted to reach 12 aircraft per month by 2028.

Capacity expansions have already been put in place to support those targets. Airbus commissioned a second A320 final assembly line in Tianjin in 2025 and is enlarging its production footprint in Mobile, Alabama. Those moves are part of the group's broader capacity strategy to meet backlog delivery schedules.

In December 2025 Airbus acquired significant work packages from Spirit AeroSystems. The assets included major fuselage sections, wing leading edges, nacelles, engine pylons, landing gear doors and other composite and metallic aerostructures, primarily supporting the A220 and A350 programs.

Workforce expansion has accompanied the production build-out. Airbus' employee headcount increased to approximately 165,000 as of December 2025 compared with about 133,000 in 2019.

On capital spending, S&P expects Airbus' annual capital expenditure will range between €4.0 billion and €4.5 billion per year over 2026-2028. The ratings agency framed the stable outlook around the view that Airbus will continue to execute its large backlog successfully, which should translate into improving profitability and steady cash flow while the company maintains a credit-supportive financial policy.


Implications for markets and sectors

Airframe manufacturers, suppliers of aerostructures and the broader aerospace supply chain are directly affected by changes in Airbus' credit profile, since a stronger rating can influence borrowing costs, supplier payment terms and investment decisions tied to production ramps.

Risks

  • Operational disruptions or setbacks could pressure cash balances despite the current net cash cushion - impacting the aerospace manufacturing and supply sectors.
  • Execution risk tied to ramping production to targeted monthly rates for the A320 and A350 programs could affect profitability and cash flow if delivery schedules slip.
  • Capital spending requirements of €4.0 billion-€4.5 billion annually through 2026-2028 increase the need for disciplined financial policy to maintain the upgraded credit profile.

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