Airbus Wins Order to Supply 25 A350-1000 Airplanes to Riyadh Air

Airbus SE EADSY recently secured a firm order from the Saudi Arabian airline, Riyadh Air, to supply 25 of its A350-1000 commercial aircraft. The deal, with the potential to include another 25 aircraft, was inked at the Paris Air Show.

This contract win strengthens Airbus’ A350 position globally and should boost the company’s future revenues once the deliveries get started.

A Note on Airbus’ A350 Family Jets

The A350 offers the longest-range capability of any commercial airliner in production today, with the capacity to save at least 20% fuel and reduce CO??? emissions. The A350 family can operate on up to 50% Sustainable Aviation Fuel and aims for 100% by 2030.

Such remarkable features must have been bolstering the demand for this jet family, translating into solid order growth, like the latest one. This jet line’s solid demand can be further gauged from the more than 1,390 firm orders it has won from more than 60 customers globally, with 657 aircraft in service (as of May end).

Growing Global Demand Benefits EADSY Stock

Rising air passenger traffic, backed by enhanced air travel among passengers and executives, along with the increasing demand for fuel-efficient and modern aircraft, is driving growth in the commercial aviation market. 

To this end, Airbus forecasts demand for 43,420 new aircraft deliveries over the next 20 years. This demand should get translated into meaningful revenue growth for this jet giant. In line with this, during 2024, EADSY registered 6% year-over-year revenue growth from commercial aircraft activities, backed by a 4.2% rise in commercial aircraft deliveries. 

As of May 2025, the company has delivered 243 commercial aircraft to 61 customers. We may expect the company to continue to record similar revenue growth in the coming quarters as well, thanks to such robust delivery numbers. The Zacks Consensus Estimate for Airbus’ 2025 and 2026 revenues suggests an annual improvement of 10.4% each year, further supporting this thesis.

Opportunities for Other Aerospace Stocks

Other prominent commercial aerospace players that are also expected to gain from the rising jet delivery demand trends are mentioned below:

The Boeing Company BA: The company enjoys a strong business footprint globally and has been the manufacturer of premier commercial jetliners for decades. Its commercial portfolio includes the 737, 767, 777 and 787 families of aircraft, as well as the Boeing Business Jet line.

Boeing has a long-term (three to five years) earnings growth rate of 18.1%. The Zacks Consensus Estimate for BA’s 2025 sales calls for an improvement of 25.6%.

Embraer S.A. ERJ: The company is the third-largest manufacturer of commercial aircraft in the world. Its product portfolio of commercial jets includes E175-E2, E190-E2 and E195-E2.

Embraer delivered an average earnings surprise of 150.60% in the last four quarters. The Zacks Consensus Estimate for ERJ’s 2025 sales implies an improvement of 15.9%.

Textron Inc. TXT: The company offers a wide range of commercial aircraft solutions, particularly business jets. Its product portfolio includes a handful of business aircraft like the Citation M2 Gen3, Citation CJ4 Gen3, Citation CJ3 Gen3, Citation Latitude and the Citation Longitude.

Textron boasts a long-term earnings growth rate of 10%. The Zacks Consensus Estimate for TXT’s 2025 sales suggests an improvement of 6.6%.

EADSY Stock Price Movement

In the past year, shares of Airbus have risen 16.1% compared with the industry’s growth of 14.5%.

EADSY’s Zacks Rank

Airbus currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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