IAG share price rising wedge points to a retreat despite new buyback

IAG share price jumped to a new record high on Friday after the company published strong financial results, which provided more information about its operations. It soared to a high of 463p and then pulled back to 438p.

British Airways parent is firing on all cylinders 

IAG, the parent company of top airlines like British Airways, Iberia, Vueling, Level, and Aer Lingus, is firing on all cylinders as demand for its services jump and its premium business gains momentum.

The company published strong financial results and launched a new buyback program as we predicted on Thursday. In a statement, the firm said that its revenue jumped to €33 billion in 2025, with its operating profit hitting €5 billion, a 13% increase from the previous year.

IAG also continued to boost its margins, with the operating margin soaring to 15.1%. Most importantly, the company’s return on invested capital hitting 18.5%. The earnings per share rose by 22.4% to 69.5 cents.

As a result, the management decided to announce a new share buyback program, a move intended to boost its earnings per share (EPS). It will now repurchase shares worth €1.5 billion in the next 12 months. The CEO said:

“We are confident as we look to the future, with compelling market dynamics, long-term secular growth and a clear plan to leverage our business model and deliver our strategy.”

However, there are signs the company's growth is slowing a bit lately. For example, the revenue retreated by 0.8% in the fourth quarter, while its operating profit fell by 2.5%.

IAG continued to strengthen its balance sheet, with its net debt falling to €5.9 billion from the previous €7.5 billion. It ended the year with total liquidity of over €10 billion.

IAG has benefited from its substantial market share in the transatlantic route, where its brands move thousands of people from Europe to the United States and back every month. Fears of this route deteriorating during the Trump administration have ebbed.

At the same time, lower jet fuel prices and soaring demand for premium seats helped to boost its profits during the year.

The management believes that the growth will continue. It now expects that the operating margin will be between 12% and 15%, while its RoIC will be between 13% and 16%.

IAG share price technical analysis 

The daily timeframe chart shows that the IAG stock price soared to a record high after publishing its financial results and then pulled back to the current 433p.

It has formed a bearish engulfing pattern, which happens when a big bearish candle comes after a smaller bullish one.

At the same time, the stock has formed a large rising wedge pattern, which is made up of two ascending and converging trendlines. A bearish move normally happens when the two lines near their confluence.

Therefore, the most likely scenario is where the stock retreats and moves to the key support level at 400p. It will likely remain under pressure for a while and then bounce back.