Tomorrow's Stock Trading: Essential Insights into Conti's Spin-off for Investors, Courtesy of Aumovio
Deutsche Börse Expands DAX to Include Automotive Supplier Aumovio
In a significant move, Deutsche Börse's subsidiary ISS STOXX Ltd. has announced that the DAX, Germany's leading stock index, will temporarily expand to 41 components to accommodate the Initial Public Offering (IPO) of Aumovio, a prominent automotive supplier.
Aumovio, which offers brakes, chassis, vehicle electronics, infotainment solutions, sensors, and components for assisted and autonomous driving, is set to begin its journey as an independent company. The spin-off from Continental is expected to take place on the Frankfurt Stock Exchange on September 18, 2025.
According to Aumovio's long-term targets, the company aims to achieve revenues exceeding 24 billion euros, an EBIT margin of 6.0 to 8.0 percent, and an ROCE of over 16 percent. In the mid-term, Aumovio plans to generate revenues of 20 to 22 billion euros with an EBIT margin of 4 to 6 percent and a return on capital employed (ROCE) of 12 to 15 percent.
In 2024, Aumovio reported revenues of 19.6 billion euros and orders of 19.3 billion euros. The company's adjusted EBIT margin stood at 2.5 percent, a figure achieved through cost-cutting and price increases. Aumovio employs around 93,000 people in over 50 countries.
Continental hopes that the spin-off of Aumovio will enable it to become a distinct growth story separate from Continental's traditional business. This move allows investors to have two clearly defined stocks: Continental as a reliable dividend payer and Aumovio as a growth-focused company. The spin-off is also expected to improve Aumovio's operational margin through cost savings and better position it despite the current weak market conditions in the automotive supplier industry.
Aumovio starts its independence with a debt-free balance sheet, 1.5 billion euros in cash, and a credit line of 2.5 billion euros. The company also plans mid-term dividend payments of 10 to 30 percent of net income.
As Aumovio prepares for its IPO, it is set to join the DAX, Germany's blue-chip index, providing investors with an exciting new growth opportunity in the automotive industry.
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