The pan-European aerospace firm said it would increase shareholder returns and leave its 2025 financial targets unchanged in an attempt to reassure investors.
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Airbus SE introduced a new dividend policy on Wednesday, increasing the amount it intends to pay to shareholders in the future. The firm increased its new dividend payout ratio limit from 40% to 50% of the share of profits, bringing the new payout range to 30%-50%.
Airbus also hinted at the possibility of paying out a special dividend and introducing share buyback programmes.
The planemaker and defence company also said that it would maintain its long-term cash conversion target, a measurement of the firm’s efficiency in converting its profits into cash.
“Airbus will reaffirm its commitment to profitable growth and its cash conversion target of around 1 over a 5-year horizon,” the company said.
Airbus’ share price increased by 3% by around 11.00 CEST, following the announcement.
The company’s statement comes at a time of global trade uncertainty and supply chain disruptions.
Airbus set a goal of handing over 820 aircraft this year. Ongoing supply chain issues slowed the deliveries in the first months of 2025, but Christian Scherer, CEO of the company’s core planemaking business, said that Airbus remains "cautiously hopeful" about meeting its 2025 target.
Meanwhile, Airbus’ defence business is thriving.
With the EU preparing a significant defence budget increase, the firm is expecting its military helicopter orders to grow by 50% between 2023 and 2025. Airbus is also developing a drone portfolio, aiming to become a market leader in this segment.
Airbus started this week at the Paris Air Show, announcing new orders from Saudi Arabia and Poland. Airbus also recently signed a framework agreement with the French military for purchases of navy drones, and secured another deal with Singapore to deliver military helicopters.
