Airbus SE has announced the launch of the second tranche of its ongoing share buyback program. This initiative, first unveiled on 9 September 2024, is designed to support the company’s future employee share ownership plans and equity-based compensation programs. The comprehensive buyback program will be executed in multiple phases, with a total duration extending until 31 March 2025. The ultimate goal is to repurchase up to 4,254,000 shares, adhering to financial limits set by regulatory guidelines under the Delegated Regulation.
First Tranche Completed Successfully
The initial phase of the buyback, which concluded on 4 October 2024, saw Airbus repurchase 2,127,000 shares. This marked the halfway point in the program and demonstrated the company’s commitment to its stated objectives. By reacquiring these shares, Airbus not only strengthens its ability to fund employee share schemes but also avoids diluting the equity of existing shareholders—a key focus of the initiative.
Details of the Second Tranche
For the second phase, Airbus has appointed an investment firm to oversee the execution process. The mandate grants the firm autonomy to decide the timing and pace of share purchases. This tranche will cover up to 2,127,000 shares, mirroring the size of the first phase, and will span the period from 25 November 2024 to 24 January 2025.
By entrusting the management of the tranche to a professional investment firm, Airbus ensures that transactions are carried out independently, aligning with market conditions and without direct influence from the company.
Regulatory Compliance and Oversight
The program is structured to adhere to all relevant legal and regulatory frameworks, ensuring transparency and compliance at every stage. Airbus has emphasized its commitment to upholding the provisions of Regulation (EU) No 596/2014, also known as the EU Market Abuse Regulation, as well as the accompanying Commission Delegated Regulation (EU) No 2016/1052.
These rules govern the operation of share buyback programs, including the disclosure requirements and mechanisms for preventing market manipulation. Airbus’s adherence to these guidelines reflects its dedication to maintaining high standards of corporate governance and investor trust.
Shareholder Authorization
The buyback initiative was authorized by Airbus shareholders during the company’s Annual General Meeting on 10 April 2024. At this meeting, the Board of Directors was granted the authority to repurchase up to 10% of the company’s issued share capital. This shareholder approval underscores the broad support for the program and its intended objectives.
The repurchased shares are earmarked primarily for two purposes:
- Employee Share Ownership Plans: These plans aim to foster a culture of ownership and alignment among employees by allowing them to participate directly in the company’s success.
- Equity-Based Compensation: Airbus uses share-based incentives to attract and retain top talent, rewarding employees based on their contributions to the company’s performance.
By implementing this buyback program, Airbus aims to fulfill these commitments without diluting the holdings of existing shareholders—a balance that benefits both employees and investors.
Market and Strategic Considerations
The execution of the buyback program is subject to prevailing market conditions. This flexibility ensures that the company can optimize the timing and pricing of its share repurchases, maximizing value for shareholders.
The move also highlights Airbus’s strong financial position, enabling it to return value to stakeholders while maintaining resources to invest in growth and innovation.
Transparency and Future Updates
Airbus is committed to providing stakeholders with timely updates on the progress of the buyback program. Detailed information, including the number of shares repurchased and other relevant metrics, will be made available through official channels. Interested parties can access this information on the Airbus website under the dedicated “Share Price and Information” section:Airbus Share Buyback Information.
The second tranche of Airbus’s share buyback program reaffirms the company’s strategic focus on enhancing shareholder value while supporting its workforce. By striking a balance between these priorities and adhering to stringent regulatory standards, Airbus continues to position itself as a responsible and forward-looking organization.
This initiative not only supports the long-term interests of employees and shareholders but also reflects Airbus’s confidence in its future growth prospects and financial stability.
