Story
Airbus Shares Rise on New 2029 Profit Target and €5 Billion Buyback Plan
Summary
The European aerospace giant's stock gained after it unveiled a new mid-term adjusted EBIT target of up to €13 billion and a three-year share repurchase program.
Shares of Airbus SE (OTC: EADSY) rose as much as 3.4% in Tuesday trading after the aerospace manufacturer unveiled a new mid-term financial outlook and a significant share buyback program during an investor update in London.
New Financial Targets
Airbus announced it is targeting an adjusted earnings before interest and taxes (EBIT) of between €12 billion and €13 billion in 2029. The company noted that this forecast assumes a euro-to-dollar exchange rate of 1.22.
Alongside the new EBIT goal, Airbus reiterated its target for a cash conversion ratio of approximately 1 over a five-year horizon. The company's guidance for 2026 remains unchanged, according to the presentation made by CEO Guillaume Faury and senior management.
Shareholder Return Program
The company's Board of Directors has approved a share buyback program of €5 billion to be executed over the next three years. This move signals a strong commitment to returning capital to shareholders.
AdThe execution of the repurchase plan will be managed by the company within the board-approved terms and remains subject to continued shareholder approval, Airbus stated.
Market Context and Assumptions
The positive investor reaction reflects confidence in the company's long-term strategy across its Commercial Aircraft, Helicopters, and Defence and Space divisions. However, Airbus cautioned that its outlook is based on a stable global environment.
The forecast assumes no additional disruptions to the world economy, air traffic, the supply chain, or the company's ability to deliver products. It also presumes stable trade regulations and does not account for the potential impact of future M&A activities.
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