Germany's Aumovio sets 30% payout goal, says 2026 dividend unlikely (updated)
UPDATE 1-Germany's Aumovio sets 30% payout goal, says 2026 dividend unlikely Recasts with details on capital allocation strategy in paragraphs 1-2, CFO comments in 3,5, analyst comment in 4
By Amir Orusov
Aug 6 (Reuters) - German automotive supplier Aumovio AMV0n.DE said on Thursday it plans to distribute about 30% of net income as dividend under a new capital allocation strategy, up from its previous payout target range of 10%-30%.
The company said excess free cash flow, after dividends and M&A spending, would be used for share buybacks.
Despite the more shareholder-friendly framework, Chief Financial Officer Jutta Doenges said on a media call that Aumovio is unlikely to pay a dividend for the 2026 financial year. The company reported a net loss of €597 million ($688.9 million) in the first half of the year.
Jefferies said the capital allocation framework was largely in line with expectations, although some investors had hoped for a higher payout following a lower than feared BMW BMWG.DE settlement. Aumovio will pay the premium carmaker €350 million in two instalments in the third and fourth quarters of 2026, with the larger share to be paid in the fourth quarter, the CFO said.
Aumovio confirmed its full-year guidance but warned that challenging market conditions are likely to persist through the remainder of the year, with weak automotive markets, lower vehicle production, geopolitical tensions and uncertainty over trade policy as headwinds.
($1 = 0.8666 euros)
(Reporting by Amir Orusov, additional reporting by Ilona Wissenbach; Editing by Mrigank Dhaniwala)