Airbus Boosts 2025 Aircraft Production & Announces Special Dividend—But Shares Drop!

Airbus reported a 6% revenue increase in 2024, reaching €69.2 billion, with 766 commercial aircraft delivered, aligning with prior guidance. However, operating profit fell 8% to €5.4 billion, as gains in Commercial Aircraft and Helicopters were offset by losses in Defence and Space. Free cash flow rose 9% to €4.5 billion, strengthening the net cash position to €11.8 billion. For 2025, Airbus targets 820 aircraft deliveries and an operating profit of €7.0 billion.

The company announced an 11% dividend increase to €2 per share, along with a €1 special dividend. Demand remains strong, with an order backlog of 8,658 aircraft, but supply chain challenges persist, with full resolution expected by 2028. Meanwhile, the Defence and Space division is restructuring after financial setbacks. Despite Airbus’ strong fundamentals, shares fell 2.4%, as the 2025 outlook was slightly weaker than market expectations.

CONTENTS:

• Market Overview & Challenges
• Financial Position & Outlook

Airbus Boosts 2025 Aircraft Production & Announces Special Dividend—But Shares Drop!

2025 Aircraft Production to Increase, Special Dividend Announced

Airbus has reported a 6% increase in full-year revenue, reaching €69.2 billion, driven by growth across all business divisions. The company delivered 766 commercial aircraft in 2024, aligning with its previous guidance.

However, underlying operating profit declined by 8% to €5.4 billion. While profits from the Commercial Aircraft and Helicopters segments improved, losses in the Defence and Space division—due to charges from past contracts—offset these gains.

Free cash flow rose by 9% to €4.5 billion, supported by strong cash generation, and the company’s net cash position improved by 10% to €11.8 billion by year-end.

For 2025, Airbus expects to deliver around 820 aircraft, with an estimated operating profit of €7.0 billion. The company also announced an 11% increase in its annual dividend to €2 per share, along with a €1 special dividend.

Despite the solid financial results, Airbus shares fell 2.4% in early trading, as its 2025 outlook was slightly below market expectations.

Market Overview & Challenges

Airbus continues to benefit from strong demand, as airlines look to upgrade fleets after years of underinvestment due to COVID-19. The company’s order backlog grew to 8,658 aircraft—over 11 times its 2024 deliveries, ensuring long-term revenue visibility.

However, supplier constraints remain a challenge, affecting Airbus’ ability to meet demand. The company is working to address these issues by acquiring parts of a key supplier, though full resolution is not expected until 2028.

Meanwhile, the Defence and Space division underwent a management review, leading to significant financial charges due to past contract mispricing. However, with restructuring efforts underway, there is cautious optimism for improvement in this segment.

Financial Position & Outlook

Airbus maintains a strong balance sheet, with €11.8 billion in net cash, allowing it to return surplus capital to shareholders through dividends.

The company’s forward price/earnings ratio is 24.4, above its 10-year average of 20.1, reflecting investor confidence in its market position. If Airbus successfully resolves supply chain challenges, it could see long-term growth, though short-term volatility remains a possibility.