Boeing vs. Airbus: Which Aviation Titan Offers Better Long-Term Prospects?

By Aparajita Dutta | May 23, 2025, 4:08 PM

As global air travel rebounds and defense budgets expand amid escalating geopolitical risks, investors are increasingly drawn to aerospace leaders Boeing BA and Airbus EADSY. The companies’ strong presence across both commercial aviation and defense sectors positions them well to capitalize on this growth, making them compelling choices for long-term investment.

U.S.-based Boeing maintains a diversified business portfolio that includes commercial aircraft, defense systems, and space technologies, with robust connections to the U.S. Department of Defense, which supports a major portion of its long-term growth prospects. On the other hand, Europe-based Airbus operates an integrated model, but possesses a stronger presence in commercial aerospace while gradually growing its defense and space divisions.

With both these companies riding the powerful waves of defense modernization and airline fleet upgrades, the pressing question that aerospace-focused investors may face is: which stock stands out as the stronger aviation titan? Let’s delve deeper to find an answer to this.

Financial Stability & Growth Drivers: BA vs EADSY?

Both Boeing and Airbus hold dominant positions in the aerospace sector, but differ notably in terms of financial stability and growth drivers.

Despite recent financial challenges, including setbacks from the 737 Max program and labor strikes in late 2024, Boeing delivered more commercial jets in the first quarter of 2025 compared to the previous year, supported by strong global air travel demand. This robust demand also boosted Boeing’s global services business, resulting in a solid 17.7% increase in first-quarter sales that improved the company’s financial position.

At the end of the first quarter, Boeing held $23.67 billion in cash and equivalents, with current debt of $7.93 billion, well below its cash balance, indicating strong near-term solvency. However, its long-term debt remained high at $45.69 billion. Boeing also successfully reduced its operating cash outflow to $1.62 billion from $3.36 billion a year ago, reflecting gradual financial recovery, particularly in its commercial segment.

A major growth driver for Boeing’s defense business is the U.S. government’s increased defense spending. The proposed 13% budget hike for fiscal 2026 by President Trump, including funding for the F-47 sixth-generation fighter aircraft, manufactured by Boeing, should significantly benefit the company. Boeing’s Defense, Space & Security division further strengthens revenue prospects with a substantial backlog of $61.57 billion as of March 31, 2025.
Innovative programs like the MQ-25, which recently advanced to final assembly, demonstrate Boeing’s commitment to expanding its defense market share through cutting-edge technology. Overall, Boeing shows signs of steady recovery and growth, bolstered by strong defense contracts and improving commercial operations.

Airbus, on the other hand, has maintained more financial stability in recent times, thanks to a stronger balance sheet and consistent deliveries. EADSY’s commercial aircraft deliveries outpaced Boeing’s for the fifth consecutive year, reinforcing its market leadership (a trend we observed in the first quarter of 2025 as well).

A comparative analysis of the company’s balance sheet items shows that its cash balance came in higher than its current debt at the end of the first quarter of 2025. Its operating cash flow also improved from the 2024-end level.

Backed by growing air travel and defense orders, Airbus’ first-quarter revenues registered a solid year-over-year improvement. Looking ahead, Airbus is ramping up its A320neo production, targeting 75 units per month by 2026, which should further bolster its commercial revenues.

As far as the company’s defense and space business segment is concerned, this unit registered a 30% year-over-year order growth in the first quarter, which bolsters its future revenue generation prospects.

Risks of Investing in Boeing vs. Airbus

Boeing faces significant execution and reputational risks, mainly due to ongoing quality control problems in its commercial division, especially with the 737 MAX program. A labor strike in September 2024, combined with these issues, caused a temporary production halt, leading to a large buildup of inventory. As of March 31, 2025, Boeing held around 35 undelivered 737-8 aircraft produced before 2023, scheduled for delivery this year.

Notably, 25 of these jets are destined for Chinese customers, raising concerns about timely deliveries amid escalating U.S.-China trade tensions. Failure in delivering these aircraft on time could negatively impact Boeing’s Commercial Airplanes (“BCA”) segment, potentially leading to weaker financial performance in the upcoming quarters.

Airbus, on the other hand, although benefits from a more stable commercial aircraft production environment, is not immune to risks. The company faces challenges from supply-chain bottlenecks, particularly in engine deliveries, and rising input costs. Moreover, in April 2025, the Trump administration imposed a 10% tariff on all imports, including aircraft, and additional reciprocal tariffs on specific countries, including the European Union. These tariffs might affect Airbus, particularly its ability to deliver aircraft to U.S. airlines.

How Do Zacks Estimates Compare for BA & EADSY?

The Zacks Consensus Estimate for Boeing’s 2025 sales implies a year-over-year surge of 25.6%, and the same for its loss also suggests an improvement. Moreover, the stock’s bottom-line estimates show mixed movement over the past 60 days.