Boeing and Airbus both offer promising long-term investment opportunities in the aerospace industry

From Nasdaq: 2025-05-23 16:08:00

Investors are turning to aerospace giants Boeing and Airbus as global air travel increases and defense budgets grow. Both companies have a strong presence in commercial aviation and defense, making them appealing long-term investments. Boeing leads in defense contracts and is showing signs of financial recovery, while Airbus boasts stable financials and consistent deliveries, with a focus on A320neo production.
Boeing’s financial position improved in the first quarter of 2025, with increased sales and reduced operating cash outflow. The company holds $23.67 billion in cash and $7.93 billion in current debt, with a strong defense backlog of $61.57 billion. Boeing’s defense segment benefits from the U.S. government’s increased defense spending, supporting growth prospects.
Airbus maintained financial stability in recent times, with a higher cash balance than debt at the end of the first quarter of 2025. The company’s commercial aircraft deliveries exceeded Boeing’s for the fifth consecutive year, with strong first-quarter revenue growth. Airbus is ramping up A320neo production and seeing growth in its defense and space business segment.
Boeing faces execution and reputational risks due to ongoing quality control issues in its commercial division, particularly with the 737 MAX program. Airbus, while more stable in commercial aircraft production, faces challenges from supply-chain bottlenecks and tariffs imposed by the Trump administration. Timely delivery concerns for Boeing and cost impacts for Airbus pose risks for investors.
Zacks estimates show a positive outlook for both Boeing and Airbus in terms of sales and earnings growth. Boeing’s sales are expected to surge by 25.6% in 2025, while Airbus is projected to see a 10.4% increase. Airbus holds a Zacks Rank #2 (Buy) compared to Boeing’s Zacks Rank #3 (Hold). Stock performance in the past three months has seen Boeing outperform Airbus, but Airbus’s valuation appears more attractive.
In conclusion, Airbus seems to hold an edge for investors seeking stability and growth, with a stronger balance sheet and consistent deliveries. Risk-averse investors may find Airbus more appealing, while those seeking higher risk appetite might consider Boeing for its recent revenue growth and improvement in cash flow. It’s essential for investors to weigh the risks and potential of both companies before making investment decisions.



Read more at Nasdaq: Boeing vs. Airbus: Which Aviation Titan Offers Better Long-Term Prospects?