Mutares Sets the Stage for a Record Year as SABIC Deal Nears Finale

Mutares enters a defining phase with a $2.5B SABIC chemicals acquisition, clean Terranor exit, Magirus turnaround nearing breakeven, and a proposed €2 dividend – revenue guidance raised to €7.9-9.1B.

Mutares is entering a defining phase, with a trio of portfolio exits and its largest-ever acquisition set to reshape the group’s profile. The Munich-based holding company has been fine-tuning its strategy on multiple fronts – from a fully executed exit in Sweden to a dramatic turnaround at its fire-engine maker Magirus – while simultaneously preparing to absorb a $2.5 billion chemicals business.

The most eye-catching development is the pending closure of the SABIC engineering thermoplastics acquisition, signed in the first quarter. This deal dwarfs anything Mutares has done before: the target generates annual revenue of around $2.5 billion through eight production sites and will form the nucleus of a new “Chemicals & Materials” segment. Management expects the transaction to complete before the end of 2026. The sheer scale of the purchase has already prompted the company to raise its 2026 group revenue guidance to a range of €7.9 billion to €9.1 billion.

To fund the expansion, Mutares has been bolstering its balance sheet. A capital increase in April brought in roughly €105 million, about 80% of which is earmarked for building up a US presence. The company already operates a hub in Chicago and is now planning a second location. The acquisition pipeline in the United States is substantial, covering targets with a combined revenue of approximately €4.8 billion.

Shareholders are also being rewarded directly. The board and supervisory board have proposed a dividend of €2.00 per share for approval at the annual general meeting on July 10, 2026. Management has made clear this is a minimum payout; if further exits generate significant gains, an additional performance dividend could follow.

The dividend proposal is backed by cash from a clean exit in Sweden. Mutares has sold its remaining 46.3% stake in Terranor to international institutional investors, completing a multi-stage exit that began with the company’s listing on Nasdaq First North Stockholm in June 2025. Terranor, which holds about 31% of the Swedish road construction market, delivered a return on invested capital well above Mutares’ internal target range – a result that underscores the appeal of infrastructure-linked assets.

Another exit candidate is gaining momentum. Magirus, the Ulm-based firefighting specialist acquired from Iveco Group in early 2025, has executed a striking operational recovery. Revenue climbed to around €336 million, up €60 million year-on-year, while adjusted EBIT losses narrowed from €40 million in 2024 to just €12 million in 2025. The company, which employs more than 1,650 people, is now approaching breakeven.

The first quarter of 2026 has extended that trend. Magirus posted revenue of roughly €85 million, booked a record order intake, and saw its total order backlog swell to over €880 million. Much of the momentum comes from the Magirus Defense unit, which acquired the specialist Achleitner in October 2025 and has since secured major orders for the Survivor platform. Mutares is pursuing an asset-light model for the business to keep capital deployed low.

Mutares is weighing two options for Magirus: an IPO or a sale to a strategic investor. A final decision depends on market conditions in the coming months, but the target is clear – generate a capital gain that can be redeployed into new acquisitions. The exit trajectory on Terranor provides a template for what Magirus could deliver.

Mutares shares have responded to the improving narrative. On Xetra, the stock recently traded at around €28, recovering from a 52-week low of €23.60 but still down roughly 15% on a year-to-date basis. The immediate 30-day performance is stronger, with the stock up about 13% from the level a month ago. Analysts will be watching the July AGM closely for concrete timing and valuation signals on the Magirus exit, especially given the wider backdrop of the SABIC deal and the US build-out. If execution continues at this pace, the gap to the 52-week high of €36.75 may narrow faster than expected.