Aalberts' Share Buyback: A Strategic Move for Shareholder Value

Aalberts N.V. has made significant strides in its share buyback program, repurchasing 206,486 of its own shares between 24 March 2025 and 28 March 2025. This move, part of a broader EUR 75 million share buyback program announced on 27 February 2025, is set to conclude by 24 October 2025. The company has engaged an intermediary to repurchase shares in the open market, ensuring compliance with regulatory standards and market abuse regulations.

The buyback program is a strategic initiative aimed at enhancing shareholder value. By repurchasing and subsequently canceling shares, Aalberts reduces the number of outstanding shares, which can lead to an increase in earnings per share (EPS). This is because the same amount of earnings is distributed among fewer shares, thereby increasing the earnings per share. For instance, as of 28 March 2025, Aalberts had repurchased a cumulative total of 627,178 shares for a total consideration of EUR 20,933,233. The cancellation of these shares will directly impact the earnings per ordinary share positively.



The strategy of share buybacks and cancellation is aimed at enhancing shareholder value by increasing the EPS and potentially the stock price. This approach is different from dividend payments, which distribute a portion of the company's earnings directly to shareholders. For example, Aalberts proposed a cash dividend of EUR 1.13 per share for the financial year 2023, which was equal to the previous year's dividend. This dividend payment represents a stable return to shareholders but does not reduce the number of outstanding shares.

In comparison, share buybacks can be more flexible and can be used to return capital to shareholders during periods when the company may not want to increase its dividend payout. For instance, Aalberts announced a EUR 75 million share buyback program commencing on 28 February 2025 and running until 24 October 2025. This program allows the company to return capital to shareholders while also reducing the share count, which can have a positive impact on EPS and potentially the stock price.

Additionally, share buybacks can signal to the market that the company believes its shares are undervalued, which can boost investor confidence and potentially drive up the stock price. This strategy aligns with Aalberts' long-term value creation approach, as stated in their corporate governance principles: "Good corporate governance, including focus on long-term value creation and culture, is a key component of 'the Aalberts way' of doing business and is embedded in our core values."

In summary, Aalberts' decision to cancel the repurchased shares can have a positive impact on EPS and overall shareholder value by reducing the number of outstanding shares. This strategy complements other shareholder return initiatives such as dividends, providing flexibility and potentially signaling undervaluation to the market. The buyback program is a strategic move that aligns with Aalberts' long-term goals of enhancing shareholder value, reflects its strong financial health, and is a response to the challenging market conditions. The program is conducted in a transparent and compliant manner, demonstrating Aalberts' commitment to good corporate governance and capital allocation.