Shares in Airbus soared more than 5% on Wednesday after the world’s largest commercial aircraft manufacturer announced a €5 billion ($5.7 billion) share buyback program and set bold new financial targets, including nearly doubling its profits by 2029.
The European planemaker revealed late Tuesday that it is aiming for a core profit of between €12 billion and €13 billion in 2029. That would represent a dramatic increase from the €7.13 billion in adjusted earnings before interest and taxes the company posted last year, and significantly exceeds its existing 2026 target of €7.5 billion.
A Deutsche Bank analyst called the buyback announcement the standout moment of the news. “The positive surprise, however, came from the €5 (billion) three-year share buy-back,” analyst Christophe Menard wrote in a note to investors.
Beyond the buyback, Airbus projected that its core commercial aviation division would generate roughly €10 billion in operating profit by 2029, and company officials expressed optimism about the pace of aircraft deliveries going forward.
The company got off to a slow start this year due to bottlenecks in its supply chain and engine production, but has since picked up the pace. Aircraft deliveries in the first half of the year were up 15% compared to the same period last year.
Investment bank J.P. Morgan said in a note that Airbus “delivered on all the things we felt were needed for the shares to rally.”
(€1 = $1.14 approximately; $1 = €0.8763)
