Elmos Semiconductor SE has announced a significant capital return program for shareholders, with plans to distribute approximately 36 million euros for the fiscal year 2025. The company's Management Board, with approval from the Supervisory Board, has decided to further develop its dividend policy to emphasize attractive and sustainable capital allocation. This move represents a clear signal to the capital market regarding the company's financial strength and strategic priorities.
The company will propose a dividend of 1.50 euros per share for fiscal year 2025 at the Annual General Meeting scheduled for May 27, 2026. This represents a substantial 50% increase compared to the previous year's dividend. In addition to the dividend increase, Elmos has approved a share buyback program with a total volume of up to 10.0 million euros, excluding transaction costs. The buyback program will be conducted via the stock exchange between February 24, 2026, and March 31, 2026.
The combined effect of the proposed dividend and share buyback program results in a total distribution increase of more than 100% compared to the previous year. This substantial increase underscores the company's successful development and strong cash position. According to the company's new policy, when there is a positive net cash position at year-end, a significant portion of that net cash will be returned to the capital market through dividends and structured share buybacks, taking into account expected business development and market conditions.
Dr. Arne Schneider, CEO of Elmos Semiconductor SE, stated that these measures represent a strong signal for the sustainable and future-oriented development of the Elmos Group. He emphasized that shareholders will participate substantially in the company's success through attractive dividends and structured share buybacks, while the company maintains financial flexibility and strategic capacity for further profitable growth. The company's preliminary figures for 2025 and the outlook for fiscal year 2026 will be published on February 24, 2026, providing additional context for these capital allocation decisions.
This announcement is particularly significant for investors and market observers as it demonstrates how semiconductor companies with strong financial positions are returning value to shareholders. The automotive semiconductor industry has faced significant challenges in recent years, including supply chain disruptions and shifting demand patterns. Elmos's ability to implement such a substantial capital return program suggests resilience and successful navigation of these industry challenges. The company's focus on analog mixed-signal integrated circuits for automotive applications positions it within key growth areas including driver assistance systems, intelligent sensors, and efficient motor control solutions.
The capital allocation strategy announced by Elmos reflects broader trends in the semiconductor industry where companies with strong cash positions are increasingly returning capital to shareholders while maintaining investment capacity for future growth. The structured approach combining dividends and share buybacks provides flexibility to adjust capital returns based on business conditions while signaling confidence in the company's financial stability. Investors can view the original release on www.newmediawire.com for additional details about the announcement and the company's forward-looking statements regarding future performance.
