Airbus Targets Sustainable Growth Amid Industry Challenges

Airbus increases its dividend payout target range to reassure investors ahead of the 2025 Paris Airshow. Despite facing supply chain disruptions and global conflicts, the company maintains a positive outlook for its future by emphasizing profitable growth and dual sourcing to mitigate trade risks.

Airbus has elevated its dividend payout target to 50% from a previous range of 30% to 40% as it seeks to appease investors ahead of a significant business update on Wednesday. The aerospace giant also reaffirmed its 2025 guidance, signaling optimism for sustainable growth despite ongoing global challenges.

At the 2025 Paris Airshow, where industry players showcase resilience amidst economic tensions and supply chain obstacles, Airbus celebrated a 3.8% surge in share prices. The company highlighted its commitment to converting profits into free cash with a target cash conversion metric of around 1 over a five-year horizon.

Despite progress, with 40% fewer disruptions from delayed components since early 2025, supply chain vulnerabilities remain. Strikes at supplier sites underscore these challenges as the company anticipates continued industry resilience, emphasizing dual sourcing to mitigate trade conflict risks and aiming for 820 deliveries by 2025.

(With inputs from agencies.)