This article first appeared on GuruFocus.
Airbus (EADSY), the global aircraft and defense manufacturer, rose approximately 0.7% to $57.82 Friday after reaching a preliminary deal with four Spanish unions. The proposal targets pay and working conditions after weeks of strikes. But the fight is not finished. Workers must still approve the agreement in a binding referendum.
Airbus Rises as Its 9,222-Jet Backlog Gets Labor Relief · us.finance.gurufocus
Airbus needs every production line humming. Its half-year results showed 351 commercial-aircraft deliveries, 33.2 billion of revenue and 2.7 billion of adjusted EBIT. The backlog stands at a massive 9,222 jets, while management is targeting approximately 870 deliveries this year.
Airbus Rises as Its 9,222-Jet Backlog Gets Labor Relief · us.finance.gurufocus
That backlog equals roughly 10.6 years of production at the current annual target. Airbus’s approximately 15,000 Spanish employees represent nearly 8.9% of its global workforce, so another breakdown would hit far beyond Spain. The stock now trades 10.32% above its $52.41 GF Value, suggesting investors are already pricing in cleaner execution. Labor peace would protect the delivery ramp. A no vote would put the bottleneck risk straight back on the runway.