Mutares Delivers Record EBITDA but Debt Covenant Breach Casts a Shadow

Mutares posts sixfold EBITDA jump to €675M driven by Steyr Motors sale, but bond covenant breach triggers a binding debt repayment roadmap and stock near 52-week lows.

The Munich-based holding company Mutares has published its audited annual report for 2025, revealing a sharp jump in earnings alongside a technical breach of its bond covenants — a dual narrative that has left the stock languishing near 52-week lows.

A Surge Driven by Special Gains

Mutares reported a leap in group revenue to €6.5 billion, up from €5.3 billion a year earlier. The headline figure that grabbed attention, however, was the near-sixfold increase in EBITDA, which soared from roughly €117 million to €675.3 million. The primary catalyst was the sale of Steyr Motors, which generated over €170 million in proceeds. Stripping out such one-off items, the adjusted EBITDA still improved, moving from minus €85.4 million to minus €31.2 million — a sign that the underlying operational trajectory is heading in the right direction, even if losses persist.

The holding company’s net profit climbed to €130.4 million, bolstered by bargain-purchase gains and exit proceeds.

Covenant Breach Triggers a Repayment Roadmap

Despite the headline earnings beat, the audited accounts confirmed what the market had feared for months: Mutares breached a financial covenant in 2025. The ratio of net debt to equity exceeded the limit agreed in its bond terms, driven by valuation effects, fewer value-enhancing transactions in the fourth quarter, and a significant increase in lease liabilities.

Bondholders of the two Nordic bonds — the 2023/27 and 2024/29 issues — have granted a waiver, buying the company time but not solving the structural issue permanently. Management has now laid out a binding repayment plan. At the end of 2025, outstanding bonds totalled €385 million. By the end of 2026, that figure is targeted to fall to between €250 million and €300 million. In the current quarter alone, Mutares plans to buy back at least €25 million of the 2023/2027 bond, with a further €25 million in each subsequent quarter.

To accelerate the deleveraging, the company has signed two acquisitions — Wärtsilä Gas Solutions and SABIC’s ETP business — which are expected to help bring the key ratio back into compliance by the end of June.

US Expansion and a New Segment

Alongside the balance-sheet repair, Mutares is pressing ahead with its transatlantic ambitions. A capital increase completed in April 2026 raised gross proceeds of €105 million. The company already has a presence in Chicago and is now planning a second US location. The acquisition pipeline in North America includes targets with a combined revenue pool of roughly €4.8 billion.

On the portfolio front, Mutares has introduced a new segment called “Infrastructure & Special Industry,” bundling recent acquisitions such as Magirus and Achleitner. The company has also identified several exit candidates for the current year, including Kalzip, WIJ Special Media, and the inTime Group. Agreements are already in place for Relobus and Conexus.

Dividend Proposal and Market Reaction

The board has proposed a dividend of €2.00 per share for approval at the annual general meeting on July 3. This is presented as a minimum annual payout, with an additional performance dividend tied to significant exit proceeds.

The market, however, remains unconvinced. The stock closed at around €25.05, roughly 22% below its level a year ago and down 16% since the start of 2026. It is trading just above its 52-week low of €23.60, a level that, if breached, could trigger further technical selling.

The next major checkpoint for investors will be the first-quarter report on May 12, which will show how quickly the debt reduction is gaining traction.