Deutsche Börse Touts Record Year, Dividend Hike and Allfunds Deal at AGM

Key Points

• Deutsche Börse reported its eighth straight record year, with 2025 net revenue excluding treasury result up 9% to EUR 5.2 billion and EBITDA up 14% to EUR 2.7 billion. The company kept its full-year outlook unchanged and said recurring revenue made up 63% of sales.
• The company proposed a 5% dividend increase to EUR 4.20 per share and is in the middle of a EUR 500 million share buyback, which it expects to finish by the end of July. Management said capital returns are being balanced with ongoing investment in growth, technology and acquisitions.
• Deutsche Börse said its planned Allfunds acquisition would be its largest ever and would help build a pan-European fund platform, though it still needs regulatory approval. The AGM also highlighted ongoing Clearstream litigation tied to Iranian assets and shareholder support for all resolutions.

Deutsche Börse ETR: DB1 used its annual general meeting to highlight another record year, outline its “Leading the Transformation” strategy and address shareholder questions on capital returns, acquisitions, regulation, technology and governance.

Clara Streit, chairwoman of the supervisory board, opened the virtual meeting and said the format was chosen based on the company’s prior experience with digital AGMs and the year’s agenda. She said the company would continue deciding the format of future meetings on a case-by-case basis, taking into account agenda items and shareholder interests.

Streit said the supervisory board focused during the past financial year on Deutsche Börse Group’s future orientation and growth plans, including the expansion of Clearstream Fund Services and the planned acquisition of all shares of Allfunds Group. She also noted personnel decisions, including the extension of executive board mandates for Thomas Book and Christoph Böhm through 2029 and the appointment of Jens Schulte as chief financial officer in September 2025.

Deutsche Börse Reports Eighth Consecutive Record Year

Chief Executive Officer Stephan Leithner said Deutsche Börse delivered its eighth consecutive record result in 2025, despite lower interest rates and subdued market volatility in the second half of the year.

Leithner said net revenue excluding treasury result rose 9% to EUR 5.2 billion, while EBITDA excluding treasury result increased 14% to EUR 2.7 billion. Operating costs rose 3%, which he said demonstrated the scalability of the company’s business model.

Leithner said nearly two-thirds of Deutsche Börse’s revenue is recurring, supported by long-term customer relationships, subscriptions and strategic solutions. CFO Jens Schulte later said recurring revenue accounted for 63% of revenue in 2025 and was expected to rise slightly by 2028, though the company has not set a specific target percentage.

For the first quarter, Leithner said net revenue excluding treasury result increased 12% to EUR 1.4 billion and EBITDA excluding treasury result rose 18%. He said the company’s full-year target remained unchanged, with net revenue excluding treasury result expected to reach EUR 5.7 billion and EBITDA excluding treasury result of about EUR 3.1 billion. The company now expects treasury result to exceed EUR 700 million.

Dividend, Buybacks and Capital Allocation

Deutsche Börse proposed a dividend of EUR 4.20 per share for the 2025 financial year, up 5% from the prior year. Leithner said the dividend represented 38% of net income, within the company’s stated target range of 30% to 40% of net profit.

The company is also conducting a EUR 500 million share buyback program, which Leithner said would be completed by the end of July at the latest. At the time of the meeting, Deutsche Börse had repurchased 1,135,219 shares for about EUR 270.7 million. The acquired shares are expected to be canceled.

Schulte said the buyback program is funded from excess liquidity and is intended to complement, not replace, investment in organic growth, technology and acquisitions. He said annual organic growth investment is about EUR 600 million.

Allfunds Acquisition and Strategic Priorities

Leithner said the planned Allfunds acquisition would be the largest in Deutsche Börse Group’s history and would complement Clearstream’s existing fund services. He said the combination would create a pan-European fund platform intended to improve cross-border access to funds and support retirement products in Europe.

Executive board member Stephanie Eckermann said Clearstream brings fund order settlement and custody services, while Allfunds contributes fund sales support. She said Deutsche Börse expects economies of scale from combining operating models and technology platforms, as well as opportunities for digital product innovation. The acquisition remains subject to regulatory approvals.

Leithner described four strategic building blocks under “Leading the Transformation”: organic growth based on technology leadership and secular trends, long-term positioning around capital market transformation, increased efficiency through the company’s “One Group” operating model, and a focus on value, capital efficiency and shareholder returns.

By 2028, Deutsche Börse aims to increase net revenue excluding treasury result to EUR 6.5 billion, while holding annual cost growth to about 3%, Leithner said.

Clearstream Litigation and Regulatory Issues

Leithner addressed litigation involving Clearstream and assets attributed to the Central Bank of Iran. He said a New York court had ruled in favor of U.S. plaintiffs connected to families of victims of the 1983 bombing of the U.S. Marine barracks in Beirut. He said Clearstream expects a turnover order requiring it to transfer more than $1.68 billion, including interest, to the U.S.

Leithner said Deutsche Börse is considering all possible legal steps and would report transparently in line with its obligations. He also said Clearstream Banking S.A.’s executive board continues to believe no provisions are required, despite pending lawsuits by Bank Markazi in Luxembourg related to the assets.

Shareholders also raised questions about European market fragmentation, Euro clearing, ISS STOXX, ESG ratings and proxy advisory services. Leithner said Deutsche Börse supports regulatory efforts to strengthen European capital markets, including the Savings and Investments Union, and believes regulation provides the foundation for trusted and efficient markets.

Shareholders Approve AGM Resolutions

Shareholders representing 73.4% of the company’s share capital participated in the AGM, including postal votes. During the meeting, shareholder representatives from SdK, DSW, Deka Investment and the Association of Ethical Shareholders Germany questioned management on share performance, recurring revenue, AI, cybersecurity, ESG, pension reform, AGM format and executive pay.

All agenda items put to a vote were approved with the required majorities. These included the EUR 4.20 dividend, ratification of the acts of the executive and supervisory boards, creation of new authorized capital, election of Claudia Nemat to the supervisory board, changes allowing appointment of a second deputy supervisory board chair, approval of the remuneration report and election of auditors for the 2026 financial year and sustainability reporting.

Streit closed the meeting by thanking shareholders for their questions and comments, saying the contributions showed the importance of continued dialogue with investors.

About Deutsche Börse ETR: DB1

Deutsche Börse AG operates as an exchange organization in Europe, America, and the Asia-Pacific. The company operates through four segments: Data & Analytics; Trading & Clearing; Fund Services; and Securities Services. It engages in the trading of derivatives, electricity and gas products, emission rights, foreign exchange, and commodity products; operating EEX and 360T over the counter trading platform for financial instruments, such as foreign exchange, money market, and interest rate products; and operating as a central counterparty.

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