Key Takeaways:
Airbus launched a €5 billion ($5.7 billion) share buyback and set a target to nearly double profit by 2029, sending shares up nearly 5%.
"As we ramp up across all our businesses, working to meet strong demand for our portfolio of innovative civil and military solutions, our priorities are clear," Chief Executive Guillaume Faury said. "Our trajectory fuels our profitable growth."
The European planemaker said adjusted earnings before interest and taxes would reach €12 billion to €13 billion in 2029, up from €7.13 billion in 2025. The commercial aircraft division alone is projected to contribute about €10 billion in operating profit by the target year. The board approved the €5 billion buyback over three years to return more capital to shareholders.
The targets signal management's confidence in overcoming supply-chain disruptions and engine shortages that have constrained production. Airbus recorded a 15% increase in handovers during the first half of the year, and improvements at engine supplier Pratt & Whitney suggest further easing of constraints.
J.P. Morgan analysts said Airbus could achieve its profit goals ahead of schedule within the next three years. Investors will watch the company's delivery cadence in the second half for signs that the production ramp-up is on track.
This article is for informational purposes only and does not constitute investment advice.
