Airbus shares climbed over 5% after the company revealed a €5 billion ($5.7 billion) share buyback program and set ambitious medium-term financial targets. This move significantly boosted investor confidence, with analysts from Deutsche Bank and J.P. Morgan reacting positively, calling the buyback the "biggest positive surprise" and fulfilling key investor expectations for a stock rally.
Airbus aims to achieve a core operating profit (adjusted EBIT) of between €12 billion and €13 billion by 2029. This target represents a near doubling of last year's adjusted EBIT of €7.13 billion and substantially exceeds its previously announced 2026 goal of €7.5 billion. The commercial aircraft division is projected to contribute around €10 billion to operating profit by 2029, reflecting sustained demand for new aircraft despite ongoing supply chain challenges.
The company struck an optimistic tone regarding aircraft deliveries, stating that handovers increased by 15% in the first half of the year as supply chain constraints and engine shortages gradually eased. This upbeat guidance reinforces expectations that Airbus is effectively resolving manufacturing issues and benefiting from robust global airline demand for fuel-efficient aircraft. The launch of the three-year share repurchase program is also expected to enhance shareholder returns and signal confidence in Airbus's long-term cash generation.
For the first half of 2025, Airbus's revenues increased by 3% to €29.6 billion, although commercial aircraft revenues saw a slight decline due to fewer deliveries (306 aircraft compared to 323 in H1 2024). This was offset by double-digit growth in its Helicopters and Defence & Space divisions. Underlying operating profit jumped 58% to €2.2 billion, driven by improved performance in the Defence & Space segment. Despite earlier production bottlenecks, Airbus maintained its full-year guidance of approximately 820 commercial aircraft deliveries, an adjusted operating profit of around €7.0 billion, and a free cash flow of about €4.5 billion.
