Airbus targets earnings boost, buyback to help lift stock

Airbus SE issued a set of ambitious financial targets for the next three years, including a €5 billion buyback plan and a doubling of profit, as the European planemaker puts its focus on raising output and bolstering a stock that has languished this year. The manufacturer aims to generate €12 billion ($13.7 billion) to €13 billion in adjusted annual operating profit in 2029, and initiate the buyback over the course of those next three years, Airbus told investors at a meeting on Tuesday. [caption id="attachment_57298349" align="aligncenter" width="2560"] Airbus Chief Executive Guillaume Faury discusses financial targets and production delivery goals in London. (Courtesy/Bloomberg)[/caption] Airbus is providing the targets at a time when the aircraft manufacturing industry enjoys near record demand. The aviation world is meeting at the Farnborough airshow near London this week, with Airbus and Boeing Co. pulling in orders from airlines and leasing companies. “We’ve ticked a lot of important boxes when it comes to our ability to supply,” Chief Executive Officer Guillaume Faury told investors at the gathering in London. “The markets we are working in are strong.” While demand remains robust, persistent supply-chain issues and concern about the fallout from the war in Iran on demand have weighed on the stock, which has barely moved this year. That compares with a 28% gain over the course of 2025. Other goals include a cash conversion target of around 1 over a 5-year horizon. Airbus said its targets assume “no additional disruptions to global trade or the world economy, air traffic, the supply chain, its internal operations, and its ability to deliver products and services,” according to a release issued on Tuesday. The biggest portion of profit contribution will come from the Airbus civil aviation business, which will bring in about €10 billion of the estimated haul by 2029, compared with €5.5 billion last year. Airbus Defense and Space will account for €1.3 billion, with the helicopter subsidiary adding about €1.2 billion, Airbus said. The company said it has an ambition of increased market share on widebody aircraft. Airbus will produce the A330 model at a rate of 5 units a month in 2029, and the A350 at 12 units in 2028, it said. The popular A320 family will reach 70 to 75 units in 2027, Airbus said, with the smaller A220 at 13 monthly units in 2028. Lars Wagner, the new head of the Airbus commercial operation, said the company is investigating how it can increase its production rate on widebodies, with the A350 able to go “well beyond” the 12 monthly units targeted by 2028. Airbus is investigating the feasibility of stretching both its A220 and its A350 units, as customers move increasingly to larger aircraft, Wagner said. The company is also willing to commit to “significant” deals to meet its ambitions for higher earnings and sales, he said. Airbus, which reports earnings on July 29, reiterated its near-term goals, which include about 870 aircraft deliveries this year and adjusted operating profit of about €7.5 billion. Free cash flow will reach about €4.5 billion, according to a company presentation. Cargo Facts Symposium 2026, the premier event for the freighter aircraft and air cargo industries, will take place in Nashville, Tenn., on Oct. 21-23. Find out more and register by Sept. 4 to take advantage of early-bird pricing.

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