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Investing.com -- Airbus (EPA:AIR) shares were up 2% on Wednesday after the company raised its dividend payout policy and reaffirmed key production and profitability targets during its Paris business update.
The aerospace group confirmed its 2025 guidance and reiterated its cash conversion goal of approximately 1x net income over the next five years.
The Amsterdam-based company also announced an increase in its dividend payout policy to 30–50% of net income, up from the current 30–40% range.
Airbus provided updated production plans for its commercial aircraft segment, though it stopped short of issuing mid-term financial targets.
The company reaffirmed all existing output targets: A220 production is expected to reach 14 aircraft per month by 2026, A320 output is forecast at 75 per month by 2027, and A350 production is set to hit 12 per month by 2028. A330 production will remain stable at approximately four per month.
For the Defense and Space division, Airbus is targeting adjusted EBIT of more than €1 billion with a mid-to-high single-digit margin by 2028.
In the Helicopters unit, the group is also forecasting adjusted EBIT above €1 billion, with a margin exceeding 11%.
Jefferies analysts noted the defense and space projections were broadly in line with their estimates, although the Helicopters margin came in slightly below their expectation of 10.7%. Still, the group’s overall forecast was roughly 10% ahead of consensus.