Airbus Raises Mid-Term Targets Significantly and Announces Multi-Billion Euro Share Buyback Program

The Airbus share rose by more than two percent in after-hours trading on the Tradegate platform compared to the Xetra closing price. By midday on Wednesday, the stock had gained more than six percent, thereby leading the DAX, which as a whole rose 0.7 percent and remained stable at a high level despite the Iran crisis.

In parallel with the earnings target, Airbus announced an extensive share buyback program. Airbus intends to spend five billion euros over three years to repurchase its own shares. "The Board of Directors plans a share buyback program of €5 billion," the company's statement said, "to be executed over three years."

Analyst Assessment

The news prompted relief on the stock market. Holger Schmidt of DZ Bank stated that the mid-term targets implied attractive growth rates and rising profitability. Ian Douglas-Pennant of UBS also emphasized that investors had likely not expected a buyback program of this magnitude. The UBS analyst additionally pointed out that the 2029 EBIT target was likely based on conservative assumptions.

Representatives of the research houses were likewise positive. David Perry of JP Morgan said that the Airbus announcement contained everything needed to drive the share price higher. "Airbus has issued mid-term targets for the first time since 2013, and they are above expectations," Perry said. However, he assessed the size of the buyback program as somewhat smaller than expected, though fundamentally positive.

George McWhirter of Berenberg Bank also commented: the earnings target lies within the expected range, but the underlying tone sounds more optimistic. McWhirter also highlighted that he is raising his earnings-per-share estimates because the buyback program will reduce the number of shares outstanding.

Production Targets for A350 and A320neo

The presentation also focused on the core business with passenger aircraft. Lars Wagner, the new head of the passenger aircraft division and former CEO of engine manufacturer MTU Aero Engines, gave concrete figures: within three years, he intends to lift the division's adjusted operating profit to approximately ten billion euros. That would be nearly double the 2025 figure.

For the Airbus A350, Wagner sees further potential: "Especially for the Airbus A350, he sees the opportunity to increase production in the future well beyond the 12 aircraft per month planned for 2028". There is strong demand for these aircraft, Wagner said. "We must be in a position to offer customers earlier slots."

For the A320neo family, the company is initially planning a more modest ramp-up. Airbus intends to increase production of the family to 70 to 75 aircraft per month by 2027. Thereafter, it should remain at 75 for the time being before further increases are considered, Wagner said. In the A320neo family's order book, 75 percent of orders now go to the long version, the A321neo.

The smaller Airbus A220 is to reach break-even in 2028 with production of 13 units per month at that point. Airbus is also confident overall regarding deliveries: the company plans to deliver approximately 870 commercial aircraft this year, surpassing the previous record of 863 aircraft set in 2019.

Defense & Space and Helicopters

In addition to the passenger business, Airbus also presented targets for its defense and space subsidiary as well as the helicopter division. For 2029, Faury has set them an adjusted operating profit target of €1.3 and €1.2 billion, respectively. Together, Defence & Space and Helicopters are to reach approximately €2.5 billion in adjusted EBIT by 2029.

The Airbus CEO also emphasized the group-wide expansion of manufacturing: "Airbus is ramping up production across all business segments to meet strong demand, Faury said on Tuesday evening in London. Order books in the passenger aircraft business in particular are full, according to the company; growth is currently being held back by supply bottlenecks at suppliers, particularly engine manufacturers.

In the past, CEO Faury had repeatedly postponed production targets for the A320neo family due to supplier bottlenecks. Competitor Boeing, meanwhile, occupies the market for large wide-body long-haul aircraft – at least from Airbus's perspective, an increasingly troubled competitor grappling with its own delivery problems.

In addition, Airbus is reviewing the development of a stretched version of the A350 – longer than the currently largest model, the A350-1000. "However, there is still no decision on the stretch," CFO Thomas Toepfer made clear. A final decision on the additional model is still pending.

Market Environment and Competition

Industry experts also assessed the new mid-term targets against the backdrop of military rearmament in Europe. European states are increasing their defense spending in view of the threat from Russia and uncertain US support, from which Airbus could benefit in the defense segment.

The occasion for the presentation was the ongoing Farnborough Airshow near the British capital, where Airbus, like other aircraft manufacturers and suppliers, is showcasing its products. The MTU share also gained around 2.3 percent at times on Wednesday, thereby ending a downward slide that had begun in early July on the DAX.

Outlook and Risks

During 2026, the Iran war and high oil prices had at times pulled down the shares of Airbus, MTU, and other stocks from the aviation sector. With the new mid-term targets and the large-scale buyback program, Airbus is now attempting to signal a clear growth trajectory to investors again.

Investors and analysts view the combination of higher earnings targets, growing production, and a multi-billion euro buyback as a sign of an extremely solid positioning of the European aircraft manufacturer. However, the ultimate realization of the gains continues to depend on whether Airbus succeeds in resolving supply-chain bottlenecks and actually achieving the ambitious production rates.

Overall, the appearance in London makes clear that Airbus intends to convert its currently most important competitive advantage – full order books – into concrete margin increases. Should that succeed, the company would be even more clearly superior to the troubled US rival Boeing over the medium term.