Airbus Shares Rise 7% – Company Announces €5 Billion Share Buyback Program

Airbus SE shares rose 7% on Wednesday after the company announced a €5 billion share buyback program over a three-year period and set a new operating profit target (Adjusted EBIT) for 2029.

At a Business Update held in London, Airbus Executive Director Guillaume Faury and the company's management presented investors with future strategy and updated financial forecasts, as well as reviewed development plans for commercial aviation, helicopters, and defense and space divisions.

The company's Board of Directors approved a €5 billion share buyback program to be implemented over the next three years, subject to shareholder approval.

Airbus also announced that it expects Adjusted EBIT to reach €12–13 billion by 2029. The forecast is based on a EUR/USD exchange rate of 1.22. The company left its 2026 financial forecast unchanged and confirmed that the Free Cash Flow conversion ratio will be maintained at approximately 1.0 over a five-year period.

According to Guillaume Faury, Airbus's primary goal is to meet growing demand in both civil and military aviation while ensuring sustainable growth.

The company noted that the forecast is based on the assumption that there will be no additional negative developments in global trade, the economy, supply chains, air transport, and tariff policy. Additionally, the projections do not reflect the potential impact of mergers and acquisitions.

At Morgan Stanley, Airbus's updated forecast was assessed more positively than expected. According to the investment bank's analysts, the biggest surprise was precisely the €5 billion share buyback program, which represents approximately 1% of the company's market capitalization annually.

According to Morgan Stanley's forecast, together with dividends, Airbus will return approximately 60% of Free Cash Flow to shareholders over the next three years.

Additionally, the company's presentation clarified that the production rate of A320 aircraft will increase to 70–75 units per month by 2027, although the previously stated goal of a steady production rate of 75 aircraft per month in subsequent periods was not mentioned.