Why Airbus Stock Slipped on Friday
The company may also have eliminated the title of Chief Technology Officer and may be de-emphasizing R&D.
Other Airbus divisions have cut costs. Is Commercial Aircraft next?
10 stocks we like better than Airbus SE ›
Airbus (OTC: EADSY) stock sank 2.2% in afternoon trading, 3:10 p.m. ET, on news of a bit of a management shake-up.
As Reuters reports, Airbus named Remi Maillard, currently head of Airbus India and South Asia, to lead its Research & Technology division as "Head of Technology Airbus" at the same time as he runs engineering at the company's core commercial airplanes business. Curiously, Airbus seems to have eliminated the title of "Chief Technology Officer" from its management team, however.
Sources suggest the change has something to do with Airbus plans to introduce a successor to its popular A320neo airplane toward the end of this decade. While company CEO Guillaume Faury says technology remains "absolutely instrumental to the future of Airbus," at least one source believes the company is de-emphasizing technology (and maybe research and development spending), perhaps in an effort to cut costs.
So what are investors to make of this?
Perhaps nothing. Executives come and go and move around plenty in a large aerospace company like Airbus. One promotion does not a business shift make -- necessarily. But if Airbus is cutting costs in commercial airplanes, this would line up nicely with efforts to cut costs in the company's space division, for example, where layoffs and other cuts have been ongoing the past two years.
If cost cuts are happening, this could be good news for investors. Priced at 28 times earnings and expected to grow earnings nearly 24% annually over the next five years -- and paying a dividend yield of nearly 2% -- Airbus stock already looks attractive.
Cut costs and boost profits even just a little bit, and the stock could easily become cheap enough to buy.
Before you buy stock in Airbus SE, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Airbus SE wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $640,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $814,127!*
Now, it's worth noting Stock Advisor's total average return is 963% — a market-crushing outperformance compared to 168% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of May 19, 2025
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Airbus Stock Slipped on Friday was originally published by The Motley Fool
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27 minutes ago
- Yahoo
LKQ Shares Crash To 52-Week Low On Slashed Outlook
LKQ Corporation (NASDAQ:LKQ) shares plummeted over 21% on Thursday after the automotive parts distributor reported second-quarter adjusted earnings that missed analyst expectations and significantly cut its full-year guidance, citing ongoing macroeconomic headwinds and a lack of recovery in North American repairable claims. The company reported second-quarter adjusted earnings per share of 87 cents, missing the analyst consensus estimate of 92 cents. Quarterly sales of $3.64 billion (down 1.9% year over year) was in line with the Street view. North American organic revenue outperformed the market even as repairable claims across the entire industry declined 9%. In Europe, LKQ Corporation has replaced more than 25% of the leadership team and continues to focus on reducing costs, rationalizing SKU's and enhancing revenue opportunities, including entering into a strategic partnership to expand our salvage business. Also Read: TransUnion's Upbeat Outlook Shines Through Market Uncertainty Organic parts & services revenue declined 3.4% year‑over‑year (2.7% on a per‑day basis). Acquisitions and divestitures trimmed revenue by 1.0% while foreign exchange rates added 2.3%, resulting in a net 2.1% decrease. The company said its focus on cost reduction measures has resulted in more than $125 million in costs taken out over the past 12 months with an additional $75 million targeted for 2025. Gross profit in the quarter under review remained relatively flat on a year-over-year basis to $1.412 billion, with gross margin flat at 38.8%. View more earnings on LKQ Adjusted EBITDA in the quarter under review decreased to $423 million from $429 million a year ago. The company exited the quarter with cash and equivalents at $289 million, and inventories worth $3.394 billion. As of June 30, 2025, the balance sheet reflected total debt of $4.5 billion, and total leverage, as defined in credit facility, was 2.6x EBITDA. On July 22, the company declared a quarterly cash dividend of 30 cents per share of common stock, payable on August 28. Outlook In North America, the company is not seeing a recovery in the repairable claims and tariff uncertainty continues. In Europe, general economic softness and geopolitical unrest are drivers of an uncertain environment. LKQ cut its fiscal year 2025 adjusted EPS guidance to $3.00-$3.30 from $3.40-$3.70, falling short of the $3.52 consensus estimate. Organic revenue for parts and services is expected to decline in the range of 3.5% to 1.5% (prior view: growth of upto 2%). The company's stock has hit a 52-week low of $32.78 following its earnings report. The key factors behind the decline were a miss on adjusted earnings per share and a revised, lower outlook for the full year, both of which have unsettled investors.
Yahoo
27 minutes ago
- Yahoo
AM Best Assigns Credit Ratings to HDI Global UK Limited
AMSTERDAM, July 24, 2025--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of "aa-" (Superior) to HDI Global UK Limited (HDI Global UK) (United Kingdom), an entity ultimately owned by HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI V.a.G.). The outlook assigned to these Credit Ratings (ratings) is stable. The ratings reflect HDI Global UK's inclusion as a member of the lead rating unit of HDI V.a.G., which has a balance sheet strength that AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management. HDI Global UK is strategically important to HDI V.a.G. as its carrier for writing delegated authority business (retail and small and medium-sized enterprises, as well as liability, motor and high net worth business in the UK. HDI Global UK was established in 2024, as a UK-incorporated subsidiary of HDI Global SE. The company is identified easily as part of HDI V.a.G., carrying the same brand. Given the strategic importance of the company to HDI V.a.G., AM Best expects that sufficient support will be provided promptly by the HDI V.a.G. group, should it be needed. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Andrea Porta Senior Financial Analyst +31 20 808 1700 Angela Yeo Senior Director, Analytics +31 20 808 1712 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318
Yahoo
27 minutes ago
- Yahoo
Saipem and Subsea7 merger agreement sealed
Italy-based energy company Saipem and Subsea7 have signed a binding merger agreement, forming a new entity in the energy sector. The combined entity, to be named Saipem7, is projected to have revenues of around €21bn ($24.75bn), with EBITDA (earnings before interest, taxes, depreciation and amortisation) exceeding €2bn and a substantial backlog worth €43bn. The merger, with the memorandum of understanding signed in February this year, is expected to generate more than €800m in free cash flow and create significant shareholder value. A shareholders' agreement has been signed by Eni, CDP Equity and Siem Industries, ensuring support for the merger. The CEO of Saipem7 will be Alessandro Puliti, designated by Eni and CDP Equity, while Kristian Siem of Siem Industries will serve as the chairman of the board. The merger aims to benefit clients by combining the strengths of both companies, including a global reach across more than 60 countries, a diversified fleet and a combined workforce of approximately 44,000. The transaction is set to yield annual cost and capital expenditure synergies of around €300m from the third year post-completion. Saipem7 plans to distribute at least 40% of its free cash flow to shareholders annually after lease liabilities are covered. The merger will be executed through an EU cross-border statutory merger, with Saipem absorbing Subsea7 and retaining its incorporation in Italy. The newly formed company will be headquartered in the Italian city of Milan and listed on the Milan and Oslo stock exchanges. Post-merger, Siem Industries will hold an 11.8% stake in Saipem7, while Eni and CDP Equity will own 10.6% and 6.4%, respectively. Subsea7 shareholders will receive 6.688 new Saipem shares for each Subsea7 share, leading to an equal shareholding between Saipem and Subsea7's current shareholders upon completion. Saipem7 will consist of four business units, with the Offshore Engineering & Construction segment operating as an autonomous company under the name Subsea7, branded as 'Subsea7, a Saipem7 Company'. This unit will incorporate Subsea7's businesses and Saipem's Asset Based Services, encompassing offshore wind operations. Other business units are Onshore Engineering & Construction, Sustainable Infrastructures and Drilling Offshore. The merger, subject to customary conditions and regulatory approvals, is expected to be completed in the second half of 2026. Financial advisory roles have been assigned to Goldman Sachs Bank Europe and Deutsche Bank for Saipem, and Kirk Lovegrove & Company and Deloitte for Subsea7.