#Buybacks Are Accelerating in 2025
Stock buybacks are gaining momentum in 2025 as companies step up efforts to reduce their share count and lift earnings per share (EPS). With interest rates steady and cash balances strong, firms are prioritizing repurchases over capital spending to drive shareholder returns. Accelerated share repurchase agreements (ASRs) are becoming a preferred tool, helping companies retire shares quickly and send a clear signal of confidence to the market.
The pace is picking up. Citi projects1 U.S. stock repurchases will hit $1 trillion this year, up 11% from 2024. And within that, more companies are opting for accelerated share repurchase agreements, or ASRs. These programs allow firms to retire a large number of shares quickly, which can help lift earnings per share almost immediately.
#Why Companies Are Leaning Into ASRs
ASRs are structured for speed and certainty. A company pays an investment bank a lump sum upfront. The bank borrows shares from institutional investors and distributes most of them immediately. Over time, the bank buys those shares back in the market to settle the deal. During that period, the bank, not the company, bears the risk if the stock moves. This makes ASRs attractive when speed and price clarity matter.
Some ASRs also include collars. These adjust the final number of shares based on the average stock price during the deal window. If the price rises, fewer shares are delivered. If it drops, more shares are retired. The collar adds a pricing guardrail that protects both sides.
Companies typically use ASRs when they think their stock is undervalued or when they want to reduce share count ahead of earnings or other catalysts. It can also signal strength to the market, especially when paired with strong cash flows and a stable outlook.
#Big Players Bet on ASRs: 2025 Deals Heat Up
In early 2025, several large companies announced or completed ASRs:
Uber Technologies Inc (NYSE: UBER) launched a $1.5 billion accelerated share buyback in January2, part of its $7 billion repurchase plan. It retired over 1% of its market cap through this transaction.
General Motors Co (NYSE: GM) executed a $2 billion ASR as part of a broader $6 billion repurchase authorization. It used the deal to front-load shareholder returns while maintaining balance sheet flexibility.
PVH Corp (NYSE: PVH), parent to Calvin Klein and Tommy Hilfiger, initiated a $500 million ASR to retire around 14% of its outstanding shares. It used a mix of cash and short-term debt, with plans to repay the debt by year-end.
Premier Inc (NASDAQ: PINC) followed up its previous $400 million ASR with another $200 million deal with JPMorgan Chase Bank in February, pushing closer to its $1 billion buyback goal. Premier’s 2025 buybacks combine open market repurchases and ASRs, rather than using ASRs exclusively.
American Eagle Outfitters Inc (NYSE: AEO) made an accelerated share repurchase agreement (ASR) with Bank of America to buy back $200 million of its common stock.
These examples demonstrate how large-cap firms utilize ASRs to manage capital effectively and efficiently. Instead of waiting months or years, they can remove shares from circulation in a matter of weeks.
#Traditional Buybacks Are Still Active
While ASRs are growing, traditional buybacks remain widely used. Companies prefer these when they want more flexibility or when market conditions are less predictable. United Rentals (NYSE: URI), for instance, rolled out a $1.5 billion buyback in Q1 2025. And authorized an additional $1.5 billion program to be executed through Q1 2026.
Barrick Gold Corp (NYSE: GOLD) announced a $1 billion share buyback program for 2025. Birchtech Corp. (TSX: BCHT) (OTCQB: BCHT) launched a $5 million share repurchase program, with flexibility to use ASRs among other methods. And Unum Group (NYSE: UNM) authorized a new $1 billion share repurchase program beginning April 2025.
These programs vary in size but share a common objective: returning capital to shareholders while reinforcing confidence in the company’s financial position.
Many other companies plan significant buybacks in 2025, including Norfolk Southern (NYSE: NSC), Westinghouse Air Brake Technologies (NYSE: WAB), Alphabet Inc (NASDAQ: GOOG), and Comcast (NASDAQ: CMCSA), to name a few.
#What This Means for Investors
For investors, the buyback surge is worth watching. Here’s why it matters:
Stock repurchases reduce share count, which boosts earnings per share. This can lift valuation multiples and attract more institutional interest.
Large ASRs can create short-term tailwinds for the stock price. When shares are retired quickly, supply shrinks, and demand often increases.
Frequent or larger-than-expected buybacks can be a clue that management sees the stock as undervalued.
ASRs are more likely when companies have strong cash flow and want to signal confidence ahead of earnings or major news.
But not all buybacks deliver long-term value. If a company overpays or uses debt in a way that weakens its balance sheet, the impact can be neutral or even negative over time. That’s why it pays to look beyond the headline number. Watch how the buybacks are funded and whether the company has a strong record of shareholder-friendly decisions.
#Key Takeaways for 2025
Companies are on pace to repurchase a potential record $1 trillion in stock this year.
ASRs are gaining traction for their speed, certainty, and ability to support share price quickly.
Buybacks are concentrated among companies with healthy cash flow and stable outlooks.
Investors should focus on how buybacks are executed, not just how big they are.
Buybacks alone don’t make a company a good investment. But in the right context, they can be a powerful lever that adds value for shareholders.
For retail investors in the U.S. and Canada, tracking buyback trends can offer insights into corporate priorities, valuation signals, and potential stock price momentum. As 2025 unfolds, expect more companies to lean into repurchases, especially if policy and economic uncertainty keep capex spending on hold.