Metlen Energy & Metals (MTLN.L): Share buyback announced; capital allocation likely unchanged

Research evidence excerpt

Metlen Energy & Metals (MTLN.L): Share buyback announced; capital allocation likely unchanged

Action |

23 Jun 2026 13:47:16 ET │ 13 pages

Metlen Energy & Metals (MTLN.L)

Share buyback announced; capital allocation likely unchanged

CITI'S TAKE

Metlen has announced upto €600 million share buyback to be executed

over next five years by 2031. We see the share buyback announcement as a

regular part of its business based on the historical precedent. Metlen has Buy

historically purchased its own shares with majority of such shares used to Price (22 Jun 26 16:30) €41.96

discharge its share-based compensation liabilities, while the remaining

Target price €52.00treasury shares were used to onboard strategic investors. We believe that

latest share buyback of upto €600 million is in continuation of such Expected share price return 23.9%

practice. We see the capital allocation policy remaining inclined towards Expected dividend yield 3.6%

growth capex, enabling the company to deliver on its €2 billion EBITDA

Expected total return 27.5%guidance in medium term. We continue to expect positive FCF for 2026,

which should help the company to deliver debt reduction vs last year. Market Cap €6,001M

US$6,883M

Share buyback should provide flexibility to support shares — we see the

announcement for upto €600 million share buyback providing the flexibility to the

company to do opportunistic open market purchases and supporting the shares.

Under the latest program, a maximum of 14.3 million share implying upto 2.8 million Price Performance

annualized shares can be purchased. Metlen has done share buyback earlier too,

(RIC: MTLN.L, BB: MTLN LN)which were then used to discharge its share-based compensation and onboarding

strategic investors.