18.06.2025

Airbus Increases Dividends: New Strategy and Implications

New Dividend Strategy

  • Increase in Dividend Payout Ratio: Airbus plans to increase the dividend payout ratio from the current 30 to 40% to a range of 40 to 50% of net earnings. This means that in the future, up to 50% of net earnings could be distributed to shareholders.
  • Sustainable Growth: Dividends are also expected to sustainably increase in the future, indicating a long-term strategy aimed at enhancing shareholder value.

Business Segments and Strategy

  • Business Segments: Airbus is divided into several business segments, including Commercial Aircraft, Helicopters, and Defence and Space. This diversity allows the company to adapt flexibly to changing market conditions and leverage growth potential in different sectors.
  • Operational Efficiency: A central aspect of the strategy is to enhance operational efficiency to foster profitable growth.
  • Cash Conversion: Airbus aims for a cash conversion of approximately 1 over a five-year period, meaning that free cash flow should roughly correspond to adjusted EBIT. This goal is crucial for financing investments and ensuring sustainable dividends.

Outlook for 2025

  • Unchanged Forecast: Despite the adjustment of the dividend policy, the forecast for the year 2025 remains unchanged. Airbus sees 2025 as a “hinge year” in which the resilience of the past years should be transformed into concrete value creation.
  • Growth Potential: With the new dividend strategy and existing business segments, Airbus is well-positioned to achieve its long-term growth targets and create sustainable value for shareholders.

Overall, Airbus demonstrates with its new dividend strategy and initiatives in the various business segments that the company is focused on sustainable growth and strengthening shareholder values.