Mutares Unveils €2.00 Dividend Plan as Debt Fix and Portfolio Reshuffle Take Centre Stage

Mutares posts €6.5B revenue and €675M EBITDA, proposes €2.00 dividend, launches aggressive bond buyback, and eyes Magirus IPO or sale amid SABIC acquisition.

The Munich-based holding company has emerged from a turbulent period with audited accounts that confirm both a dramatic profit surge and the scale of its balance sheet challenges. Mutares shares slipped nearly 2% to €24.85 on Tuesday, lingering near recent lows as investors digested a raft of developments spanning dividends, debt reduction, and a potential blockbuster exit.

Revenue climbed to €6.5 billion last year, while EBITDA multiplied to roughly €675 million, propelled by successful portfolio exits — most notably the complete divestment of Steyr Motors. The board is now proposing a minimum dividend of €2.00 per share at the annual general meeting scheduled for July 3, with the possibility of an additional performance payout if further lucrative disposals materialise.

Debt Overhang Triggers Aggressive Buyback Programme

The company breached a key covenant on two of its bonds last year after the ratio of net debt to equity exceeded the permitted threshold, driven by valuation effects and a sharp increase in leasing liabilities. Creditors have granted a waiver, buying Mutares time to address the issue. Starting in the second quarter of 2026, the group will repurchase at least €25 million of its 2023/2027 bonds every quarter, with the aim of reducing the outstanding bond volume to a maximum of €300 million by year-end.

The capital increase that accompanied the debt troubles has also reshaped the company's ownership structure. The founding Laik family's voting stake has fallen below the 25% threshold, removing the blocking minority they previously held over major decisions. Around 4.2 million new shares from the rights issue have now begun trading.

Magirus Exit Looms as SABIC Deal Takes Shape

Management is forecasting revenue of up to €9.1 billion for the current year, with the holding company's net profit expected to reach as much as €200 million. A significant driver of future gains sits within the portfolio: fire-engine manufacturer Magirus, which boasts an order backlog exceeding €800 million. Mutares is actively exploring either an initial public offering or a direct sale of the business.

Alongside potential exits, the group is pressing ahead with expansion. The planned $450 million acquisition of SABIC's specialty chemicals and high-performance materials division will form a new segment, expected to commence operations in the second half of the year. The integration of recent purchases from Wärtsilä and SABIC will be a key focus when the company reports first-quarter results on May 12.

The current order book across the group already covers the entirety of 2026 and extends well into the following year, providing a solid operational foundation as management navigates the delicate balance between debt reduction, shareholder returns, and portfolio transformation.