Portfolio Update: Strong operational performance across the Mutares portfolio – focus on energy, defense and infrastructure

Portfolio Update: Strong operational performance across the Mutares portfolio – focus on energy, defense and infrastructure

• Structural growth cycle: Portfolio benefits from accelerated investment in energy, defense and infrastructure
• Strong operational momentum: Efacec, NEM, Magirus and Donges SteelTec report strong order intake and growing profitability
• Attractive market environment: Rising demand driven by the energy transition, AI-driven electricity requirements and increased defense budgets
• Value creation & exit potential: Increasing competition for high-quality assets is driving up valuations and opening up attractive exit opportunities

Munich, March 30, 2026 – The portfolio of Mutares SE & Co. KGaA (ISIN: DE000A2NB650) is performing very well in an increasingly dynamic market environment. In particular, the energy, defense and infrastructure segments are currently in a structural growth cycle with significantly rising investment volumes.

Driven by geopolitical tensions, significantly increased defense budgets, the accelerated energy transition and comprehensive government infrastructure programs, demand for technologically sophisticated solutions is rising noticeably. At the same time, megatrends such as electrification, digitalization and the rapidly growing energy demand from data centers and AI applications are acting as additional growth drivers. In this environment, attractive scaling and value-enhancement potential are emerging along the industrial value chains, from which several of Mutares’ portfolio companies are already visibly benefiting today.

Strong momentum in key industries drives exit pipeline

Johannes Laumann, CIO of Mutares, comments: “Our portfolio impressively demonstrates the potential in the energy, defense and infrastructure sectors. We are benefiting from structural growth drivers and exceptionally strong market momentum. This makes us very confident about the coming 12 to 18 months, including in our M&A sales pipeline. At the same time, we are underlining our commitment to sustainably combining operational value creation with attractive distributions.”

Efacec: Beneficiary of European grid expansion and the digitalization of energy infrastructure

Efacec is a Portuguese engineering and technology company in the energy infrastructure sector (transformers and switchgear) with around 1,660 employees and a focus on Western Europe, the Middle East, and North America. Since its acquisition by Mutares in 2023, a comprehensive transformation program has been implemented, which is already showing clearly visible operational progress. Order intake and business development are currently well ahead of schedule; an EBITDA of EUR 40–50 million is expected for 2026. The order pipeline stands at around EUR 1.5 billion, whilst order intake in 2025, at over EUR 450 million, is exceeding expectations and leading to an order backlog of over EUR 700 million. The EBITDA margin has increased to 14% and is set to grow to around 20% by 2027.

Efacec is benefiting disproportionately from the accelerated expansion and modernization of critical energy infrastructure in Europe. At the same time, Efacec is further expanding its role in the digitalization of electricity grids: with the second phase of the R#SPACE project with the French transmission system operator RTE, the company is addressing a key component of the energy transition. The project opens up significant scaling potential in the field of smart grid automation and offers huge potential for a broad rollout of technology.

With significantly improved profitability and high visibility thanks to a robust order book, Efacec is excellently positioned to benefit from structural growth in the field of resilient and digitalized power grids. At the same time, the company is an attractive candidate for one of the largest exits in Mutares’ history.

NEM Energy: A growth driver in the global expansion of energy infrastructure

NEM Energy is emerging as a key enabler in the global expansion of modern energy infrastructure and is benefiting from structurally high demand for efficient, lower-emission energy generation solutions. In the first few months of 2026 alone, the company recorded order intake of over EUR 500 million.

NEM is thus further expanding its position in the high-growth energy infrastructure segment. The structurally rising demand for electricity – particularly driven by AI and data center applications – as well as the role of gas as a flexible bridging technology, open up significant growth potential. For 2026, order intake of well above plan and EBITDA margin of just under 10% in line with the target are expected.

Magirus: Entry into the defense market as an additional growth catalyst

Magirus is consistently driving forward the strategic expansion of its business model by establishing the Magirus Defense & Security division, thereby specifically targeting additional growth areas in the security sector. In addition to integrating existing expertise, the focus is particularly on expanding customer relationships in the field of command, control and transport vehicles, as well as armored vehicle solutions.

Building on its established industrial platform, engineering expertise and many years of experience in developing highly specialized emergency vehicles, Magirus is increasingly positioning itself as a provider of safety-critical mobility solutions.

The company has an order book of just under EUR 1 billion, whilst the sales pipeline comprises a volume of a similar magnitude. Further concrete customer initiatives and project developments underscore the increasing market momentum and significant growth potential of this segment. Magirus is thus laying the foundations for additional, more resilient revenue streams. Revenues are expected to grow to just under half a billion euros in 2026/2027.

Donges SteelTec: Beneficiary of a European infrastructure supercycle

Donges SteelTec is increasingly positioning itself as a key beneficiary of an accelerating infrastructure supercycle in Europe. Driven by government investment programs and rising budgets in infrastructure construction, there is sustained high demand for complex steel construction solutions.

Accordingly, Donges SteelTec is demonstrating strong operational momentum, underpinned by an exceptionally high order book in its core areas of bridge construction and steel structures. For the second year running, the company expects revenues in the triple-digit million range with an EBITDA margin of around 10%, underscoring the resilience of its business model. The robust order book ensures high visibility of future revenue and confirms Donges SteelTec’s leading position in the implementation of technically demanding infrastructure projects.

Looking ahead, the outlook remains very positive, as the national infrastructure and bridge renovation program in Germany continues to accelerate demand for modern steel construction solutions. The combination of high visibility, operational excellence and structural market growth forms the basis for continued dynamic business development.

Bond waiver: High level of support and timely conclusion expected

In the ongoing bond waiver process, Mutares is engaged in a constructive and solution-oriented dialogue with the relevant stakeholders. Bondholders are highly willing to temporarily waive the testing of a covenant. For both bonds, the quorum is expected to be reached shortly before the deadline. The process will conclude by April 1, 2026, at the latest, as previously announced.

Outlook: Attractive exit environment and rising valuations

Johannes Laumann (CIO) comments: “Particularly in the Energy & Technology as well as Infrastructure & Defense segments, strong demand for high-quality assets is meeting limited supply in the market, from which we expect to benefit sustainably. I am convinced that, given the opportunities within our attractive portfolio, we will continue to have the potential to be an attractive dividend payer in the years ahead, and that the current base dividend of EUR 2.00 is only the beginning.”

Company profile of Mutares SE & Co. KGaA

Mutares SE & Co. KGaA, Munich (www.mutares.com), is a listed private equity holding company with offices in Munich (HQ), Amsterdam, Bad Wiessee, Chicago, Frankfurt, Helsinki, London, Madrid, Milan, Mumbai, Paris, Shanghai, Stockholm, Tokyo, Warsaw, and Vienna, that acquires companies in transition that show significant potential for operational improvement and are resold after stabilization and repositioning. The company follows a sustainable minimum dividend policy.

The shares of Mutares SE & Co. KGaA are traded on the Regulated Market of the Frankfurt Stock Exchange under the symbol "MUX" (ISIN: DE000A2NB650) and are included in the SDAX selection index.

For further information, please contact:

Mutares SE & Co. KGaA
Investor Relations
Telephone: +49 89 9292 7760
Email:ir@mutares.de
 www.mutares.com

Press contact in Germany
CROSS ALLIANCE communication GmbH
Susan Hoffmeister
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Email:sh@crossalliance.de
 www.crossalliance.de

Press contact in France
VAE SOLIS COMMUNICATIONS
Marie-Caroline Garnier
Telephone: +33 6 22 86 39 17
Email: mutares@vae-solis.com

Press contact in the UK
14:46 Consultancy
Tom Sutton
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Email: tsutton@1446.co.uk