Germany’s Mittelstand arms itself for a new era
Country’s small and medium-sized businesses are pivoting to defence amid European rearmament
Within days of Russia’s invasion of Ukraine, as Germany’s industrial heartlands shuddered and recession loomed, the boss of 161-year-old engine maker Deutz came up with a plan to turn adversity into opportunity.
“I said ‘what about defence?’,” Sebastian Schulte recalled asking colleagues, thinking that the Cologne-based company’s engines for tractors, diggers and other heavy machinery were a perfect fit for tanks.
“Our engines run 3,000 metres above sea level, in a mine, at 40 degrees celsius or minus 20 — that’s exactly the kind of reliability militaries need,” he added.
Three years on, the manufacturer expects to make about 2 per cent of more than €2bn in annual revenue from defence contracts, from close to nothing previously. That is a proportion that is only likely to grow as Deutz begins to roll out products specifically targeted at military customers, such as hybrid engines that can help tanks approach enemies more quietly.
Deutz is one of a number of companies in Germany’s Mittelstand — the network of small and medium-sized enterprises that form the backbone of Europe’s largest economy — that have jumped at the opportunity to tap into the country’s soaring arms expenditure, amid a deepening industrial malaise.
Germany’s defence reboot — fuelled by the loosening of its strict borrowing rules and the threat of waning US support — has overturned a widespread taboo among German businesses surrounding arms manufacturing, quietly redrawing the moral and commercial boundaries of its industrial core.
Family-owned laser specialist Trumpf is considering walking back a pledge to abstain from arms production. Meanwhile, automotive supplier Schaeffler — which has announced thousands of job cuts, as German car production slows — has said it could in the future supply bearings to tank manufacturers.
Economists expect many Mittelstand companies, squeezed by a punishing industrial slowdown, to jump on the opportunity presented by rising European defence spending.
Corporate distress in Germany has been nearing levels last seen during the pandemic, as soaring energy costs — driven by the collapse of Russian gas supplies — and a bleak industrial outlook have intensified warnings of looming deindustrialisation. The country’s economy is suffering the most protracted slump in its postwar history, shrinking in both 2023 and 2024.
“You can be sure that every company able to provide services and products needed by the German Armed Forces, will definitely try to get contracts,” said Hans-Jürgen Völz, the chief economist of BVMW, a Mittelstand lobby group. “Almost all sectors of the economy can benefit from [Germany’s rearmament],” he added.
One group repositioning itself to serve the defence industry is Bavarian chemical producer Alzchem.
Until 2022, one of Alzchem’s core businesses focused on supplying the agricultural sector with nitroguanidine — a building block for many herbicides used to improve crop yield, which also happens to be highly explosive, and can be used to propel long-range shells.
“Everybody talked about cyber wars in the future, nobody had in mind that [Nato-standard] 155mm munitions would come back as the most needed ammunition,” said Alzchem’s chief executive Andreas Niedermaier.
But when the sheer demand for artillery shells became apparent — Rheinmetall has in the past three years expanded its production of 155mm munition tenfold — Alzchem pivoted from fertiliser to firepower, setting aside its agricultural clients to supply the defence industry instead.
“We let that market go to the Chinese,” Niedermaier said of Alzchem’s former herbicide business. Instead, it is rapidly expanding its capacity to supply arms makers.
Alzchem has since received a €34mn EU grant for ammunition production to support a €140mn plan to double nitroguanidine production at its Trostberg headquarters.The US government has also awarded the company $150mn to build a plant stateside — a project for which Alzchem is scouting locations.
Niedermaier said he expected defence to account for more than 10 per cent of Alzchem’s sales in the near future, depending on how its other major growth bet — creatine, a muscle-building amino acid popular among fitness influencers — performs.
But the transition under way at several of Germany’s famed Mittelstand companies has not been without friction. Arms manufacturing has long been taboo in postwar Germany because of the legacy of industrial co-operation with the Nazi regime.
Germany’s deliberate under-investment in the military allowed the country to channel resources into its welfare state and export-oriented industrial base — but the political consensus surrounding that approach is now visibly fraying.
Deutz’s Schulte, previously managing director of submarine manufacturer and defence contractor Thyssenkrupp Marine Systems, said his plan to broaden the engine maker’s client base to arms contractors was initially met with resistance from colleagues.
“I got a lot of pushback internally,” he said, adding that it took a while until Deutz’s new strategy became “I wouldn’t say broadly, but fairly accepted”.
Traditionally, many Mittelstand companies steered clear of the defence sector, wary of the reputational risks and cultural sensitivities tied to Germany’s postwar pacifism.
If deals happened at all — both Deutz and Alzchem have in the past had small contracts with defence companies — they were quietly tolerated rather than actively pursued.
“Like many German Mittelstand companies, [at Deutz] defence was not only not a focus — it was actively avoided for [environmental, social and governance] reasons,” Schulte said.
But Germany’s long-held resistance to arms production is now fading, as the country faces a historic geopolitical shift. “We need to see challenges as opportunities — not by benefiting from the war, but asking: how can you contribute best to solve the challenge?”
Toyota warns profits set to fall 21% as Trump tariffs take their toll
World’s biggest carmaker forecast includes $1.25bn impact from trade levies in April and May
Toyota has warned operating profits will fall 21 per cent this fiscal year due to the fallout from Donald Trump’s trade war, increasing the pressure on Japan to reach a deal on tariffs with the US.
For its year ending in March 2026, Toyota said it expected an operating profit of ¥3.8tn ($26bn) compared with ¥4.8tn in the year just ended. The forecast includes a US tariff impact of ¥180bn for the months of April and May.
The US president has recently offered relief to carmakers to soften the impact of his 25 per cent tariffs on imports of foreign-made cars and parts. Toyota and other Japanese manufacturers export some of the vehicles they sell in the US from Japan.
The evolving nature of Trump’s tariffs has thrown the global car industry into turmoil, with Mercedes-Benz, Volvo Cars and Ford pulling their guidance for this year, while General Motors has warned of an up to $5bn hit from the levies.
In its fourth quarter, Toyota’s operating profit was almost flat year-on-year at ¥1.2tn while revenue increased 12 per cent to ¥12.3tn.
While Toyota grapples with tariff effects, Japan’s biggest company is also considering a $42bn move to take a key subsidiary private.
Akio Toyoda, grandson of Toyota’s founder, is considering investing his personal money to lead a buyout of Toyota Industries, which makes industrial equipment and vehicles, according to people close to the discussions.
Toyota Motors, which has a complex series of cross-shareholdings with its subsidiaries, is also considering investing, say the same people, in what would be one of the world’s largest buyouts.
The move, which came to light last month, has sparked speculation that other big industrial groups would accelerate discussions over potential acquisitions or buyouts of listed subsidiaries.
Toyota Industries shares rose sharply on the news and remain up 36.5 per cent this year. Toyota Motors is down slightly over the same period.
Stock-index futures and Asian shares rose as President Donald Trump revealed plans to unveil a “major” trade deal Thursday, boosting optimism that the US was making headway in negotiations. The pound extended gains. Contracts for the S&P 500 and European stocks rose 0.8% after Trump announced the deal in a Truth Social post, without disclosing the name of the country. The administration is expected to announce an agreement with the United Kingdom, according to people familiar with the matter. Asian shares rebounded from losses of as much as 0.5% to advance 0.3%. Bitcoin jumped 2.7% to $ 99,355, the highest level in three months. Treasuries fell and gold rose. Market turbulence has calmed significantly since the early weeks of April, partly thanks to Trump’s trade concessions, but also owing to a string of US economic reports that gave confidence to bulls. One key area of focus is how the talks with China will pan out this weekend in Switzerland after the US president slapped levies of more than 100% on Chinese imports and the Asian country retaliated with similar moves. In his social media post, Trump said the upcoming deal will be with representatives of a big and highly respected country. “The first of many,” he wrote. Formal negotiations for a deal between the US and UK commenced during Trump’s first term as president. A free trade deal was the “inevitable next step” in the US-UK relationship, the then International Trade Secretary Liz Truss had said. After Trump returned to power this year, he was touting this deal about five weeks before the reciprocal tariff announcement on the so-called “Liberation Day.” The president had earlier said he was unwilling to preemptively lower tariffs on China in order to unlock more substantive negotiations with Beijing on trade. Stocks got a lift Wednesday after China and the US announced plans to do trade talks in Switzerland this weekend. The US had previously said it’s made “significant progress” toward a India bilateral trade deal following talks between Vice President JD Vance and Indian Prime Minister Narendra Modi. Trump had also said there was “big progress” in talks to strike a deal for Japan. Traders have stayed cautious after Federal Reserve Chair Jerome Powell assuaged concerns about the US economy while warning that the risks of higher unemployment and faster inflation have risen. The Fed held its rate on Wednesday. How long the good news will last as Trump’s trade policies play out is the biggest question confronting central bankers. US After Hours Busy earnings session; SEZL +31.3%, TPC +20.6%, APP +13.2%, FSLY +5.7%, KD +2.3 higher on earnings; G -15.3%, FTNT -12.1%, ARM -11.1%, SWKS -4% lower on earnings.
Nikkei +0.49% Hang Seng +0.58% CSI +0.45% Shanghai +0.14% Shenzen +0.76%
Eur$ 1.1307 CNH 7.2367 CNY 7.2374 JPY 143.91 GBP 1.3315 CHF 0.8245 RUB 80.7467 TRY 38.6427 WTI$ 58.53 +0.79% Gold 3,376 +0.33% BTC 98,863 +2.14% ETH 1,897.40 +5.50%
S&P +0.72% Nasdaq +1.00% EuroStoxx +0.61% FTSE +0.73% Dax +0.53% SMI +0.41%
Macro :
- Ukraine Mulls Euro Instead of Dollar As Reference Currency: Rtrs
- India ETF Put Option Buying Surges Amid Pakistan Tensions
- China Embassy Reiterates Need for Mutual Respect Before US Talks
- Chinese Automakers Crank Up Sales of Fuel-Burning Cars in Europe
- Millennium in Talks With Petershill Partners on Stake Sale: FT
- Millennium in Talks With Petershill Partners on Stake Sale: FT
- Gundlach: As Economy Weakens, Long-Term Rates Could Go Up
- A UK Trade Deal Will Ultimately Disappoint US Investors
- Taiwan Dollar’s Stunning Rally Spells Trouble for Tech, Insurers
Keep an eye on :
Keep an eye on :
- ABI BB : AB InBev 1Q Organic Adjusted Ebitda Beats Estimates
- YOU Gy : About You 4Q Adjusted Ebitda Margin Misses Estimates, About You 4Q Adjusted Ebitda Loss EU4.8M, Est. Loss EU12.5M
- ADEN SW : Adecco 1Q Revenue Meets Estimates
- AAF LN : Airtel Africa 4Q Adjusted Ebitda $623M Vs. $520M Y/y (1)
- ALV GY : Pimco’s Ivascyn Says US Recession Chances Highest in Years: FT
- AOX GY : Alstria Office 1Q FFO EU18M Vs. EU17.7M Y/y
- AMS SM : Amadeus 1Q Net Income Beats Estimates
- AMG NA : AMG 1Q Revenue $388.1M
- ARGX BB : Argenx 1Q Vyvgart Sales Beat Estimates
- ARM US : ARM Holdings Sees 1Q Revenue $1B to $1.1B, Est. $1.1B, Arm Falls But Weak Outlook Could Be Conservative: Street Wrap
- APA US : APA Corp 1Q Adjusted EPS Beats Estimates
- NDA GY : Aurubis 1H Pretax Operating Profit EU229M Vs. EU243M Y/y
- CAR US : Avis Budget 1Q Adjusted Ebitda Loss $93M, Est. Loss $131M
- BAMNB NA : BAM Maintains FY Adjusted Ebitda Margin Forecast
- BGI IM : Generali Defines Process to Examine Bid for Banca Generali
- IF IM : Banca Ifis’s Public Offer for Illimity Bank Begins May 19
- BAYN GY : Bayer Treatment Granted Orphan Drug Status by FDA
- BPE IM : BPER Banca 1Q Net Income Beats Estimates, BPER Says Italy Regulator OKs Stake Increase in Arca Vita
- BRNK GY : Branicks 1Q FFO EU11.4M Vs. EU9.0M Y/y
- 1211 HK : BYD -0.31% BYD, Tsingshan Drop Chile Lithium Projects After Price Rout (1)
- CVNA US : Carvana Sees Stronger Profit on Used-Car and Loan Sales (1)
- CPK US : Chesapeake Utilities 1Q Operating Revenue Beats Estimates
- CTPNV NA : CTP Maintains FY Adj. EPRA EPS Forecast
- DOCM SW : DocMorris Publishes Details of Planned Capital Increase
- EIX US : Edison’s SCE Removes Transmission Towers for Further Examination
- EDPR PL : EDP Renovaveis 1Q Net Income EU52M Vs. EU68M Y/y
- ZIL2 GY : ElringKlinger 1Q Ebitda EU41.9M
- EQX CN : Equinox Gold 1Q Revenue Misses Estimates
- FFARM NA : ForFarmers 1Q Adjusted Ebitda +38.9%
- G1A GY : GEA Group 1Q Adjusted Ebitda Beats Estimates
- G IM : Generali Defines Process to Examine Bid for Banca Generali
- G IM : Generali Defines Process to Examine Bid for Banca Generali
- GFT GY : GFT 1Q Revenue EU221.9M Vs. EU212.4M Y/y
- GT US : Goodyear Closes Sale of Dunlop Brand
- GRAB US : Grab Seeks Deal to Acquire Indonesia’s GoTo in 2Q: Reuters
- GXO US : GXO Logistics 1Q Revenue Beats Estimates
- HABA Gy : Hamborner REIT 1Q FFO EU11.9M; Confirms FY Outlook
- HEI Gy : Heidelberg Materials 1Q Profit From Current Operations EU235M
- HEN3 GY : Henkel 1Q Organic Sales Miss Estimates
- HOLMB SS : Holmen 1Q Operating Profit Beats Estimates
- 9660 HK : -5%
- ILTY IM : Banca Ifis’s Public Offer for Illimity Bank Begins May 19
- IFX GY : Infineon 3Q Revenue Forecast Misses Estimates, *INFINEON NOW SEES 2025 REV SLIGHTLY LOWER Y/Y ON TARIFF EFFECTS
- IFX GY : Infineon Gets German Government Nod for Dresden Plant Funding
- INS GY : Instone Real Estate 1Q Adjusted Ebit EU12.9M Vs. EU15.8M Y/y
- ICOS IM : Intercos 1Q Revenue EU250.8M Vs. EU221.1M Y/y
- IHG LN : InterContinental Hotels Sees Earnings in Line With Consensus
- JMT PL : J. Martins 1Q Net Income EU127M Vs. EU97M Y/y
- KBX GY : Knorr-Bremse 1Q Ebit Misses Estimates
- KPJAMO FH : Kojamo 1Q Net Rental Income Beats Estimates
- KOG NO : Kongsberg 1Q Revenue Beats Estimates
- LXS GY : Lanxess 1Q Sales Miss Estimates
- LNZ AV : Lenzing 1Q Ebitda EU156.1M Vs. EU71.4M Y/y
- LEON SW : Leonteq Shrinks Executive Board From 7 to 5 Members
- LUN CN : Lundin Mining Maintains FY Gold Production Forecast
- MAERSKB DC : Maersk 1Q Terminals Ebitda Beats Estimates
- MANTA FH : Mandatum 1Q Pretax Profit Misses Estimates
- VAC US : Marriott Vacations Shares Jump on FY EPS Outlook Boost
- AERO SW : Montana Aerospace 1Q Adjusted Ebitda EU48.8M Vs. EU37.2M Y/y
- MUR US : Murphy Oil 1Q Adjusted EPS Beats Estimates
- NEXI IM : Nexi 1Q Ebitda Beats Estimates
- NDX1 GY : Nordex Gets Order for Seven Turbines for 49MW German Wind Farm
- NAS NO : Norwegian Air 1Q Operating Revenue Misses Estimates
- NG NC : Novagold Resources Prices Upsized $179m Offering of 48m Shares
- OXY US : Occidental, APA Add to Permian Spending Cuts on Lower Oil Prices
- OUT1V FH : Outokumpu 1Q Adjusted Ebitda Misses Estimates
- PHARM NA : Pharming Boosts FY Revenue Forecast
- 1913 HK : -3.12%
- PRy IM : Prysmian 1Q Adjusted Ebitda Beats Estimates
- PUM GY : Puma 1Q Sales Beat Estimates
- QIA GY : Qiagen 1Q Net Sales Beat Estimates
- RECSI NO : REC Silicon 1Q Revenue $21.4M Vs. $29.7M Q/Q
- RHM GY : Rheinmetall 1Q Weapon and Ammunition Sales Beat Estimates
- ROVI SM : Rovi 1Q Net Income Meets Estimates
- SAB SM : Sabadell 1Q Net Income Beats Estimates
- SFQ GY : SAF-Holland SE 1Q Adjusted Ebit Margin Beats Estimates
- SCATC NO : Scatec 1Q Revenue Beats Estimates
- SGL GY : SGL 1Q Adjusted Ebitda EU33.5M Vs. EU42.1M Y/y
- ENR GY : Siemens Energy 2Q Net Income EU501M Vs. EU108M Y/y, Siemens Energy Projects Limited Impact From Import Tariffs
- SINCH SS : Sinch 1Q Adjusted Ebitda Beats Estimates
- S92 GY : SMA Solar 1Q Ebitda EU24.6M Vs. EU49.9M Y/y
- SOLB BB : Solvay 1Q Underlying Ebitda Misses Estimates
- SONO US : Sonos 2Q Revenue Beats Estimates
- SB1NO NO : SpareBank 1 Sor-Norge 1Q Return on Equity Beats Estimates
- SAX GY : Stroeer 1Q Adjusted Ebitda Misses Estimates
- SMHN GY : SUSS MicroTec 1Q Sales Beat Estimates
- SCMN SW : Swisscom 1Q Net Revenue Matches Estimates
- TSLA US : Musk’s xAI to Use Tesla Batteries at Memphis Supercomputer
- TOU CN : Tourmaline Oil 1Q EPS Misses Estimates
- TRUEB SS : Truecaller 1Q Ebit Misses Estimates
- VLA FP : Valneva Exploring Update to Ixchiq’s Indication After EMA Review
- VEI NO : Veidekke 1Q Pretax Loss NOK21M, Est. Profit NOK16.7M
- VET CN : Vermilion Energy 1Q Basic EPS Misses Estimates
- WAC GY : Wacker Neuson 1Q Ebit EU12.1M Vs. EU36.9M Y/y
- WAWI NO : Wallenius Wilhelmsen 1Q Ebitda Misses Estimates
- WEW GY : Westwing Group 1Q Adjusted Ebitda EU9.1M
- ZEAL DC : Zealand Pharma 1Q Operating Loss Narrower Than Estimated
- ZURN SW : Zurich Ins. 1Q P&C Gross Written Premiums $13.32B (1)
>>> Up
* Deliveroo Raised to Neutral at Redburn; PT 115 pence
* Evolution Raised to Hold at Deutsche Bank; PT 689 kronor
* HKFoods Raised to Accumulate at Inderes; PT 1.30 euros
* Mosaic Raised to Outperform at RBC; PT $40
* Pandora Raised to Sector Perform at RBC; PT 1,050 kroner
* Rational Raised to Hold at HSBC; PT 750 euros
* Rockwell Automation Raised to Neutral at JPMorgan; PT $271
* Rockwell Automation Raised to Neutral at JPMorgan; PT $271
* Stendorren Fastigheter Raised to Buy at Pareto Securities
>>> Down
>>> Down
* Coty Cut to Hold at Canaccord; PT $5
* Coty Cut to Hold at Deutsche Bank; PT $6
* Deliveroo Cut to Hold at Jefferies; PT 180 pence
* Deliveroo Cut to Hold at HSBC; PT 180 pence
* DNB Bank Cut to Neutral at SpareBank; PT 280 kroner
* Endesa Cut to Sell at Goldman; PT 26 euros
* Endesa Cut to Neutral at Oddo BHF; PT 27.50 euros
* Hensoldt Cut to Neutral at Oddo BHF; PT 78 euros
* Hillenbrand Cut to Sector Weight at KeyBanc
* Jyske Cut to Hold at SEB Equities; PT 605 kroner
* Sats Cut to Hold at DNB Markets; PT 37 kroner
* Sats Cut to Hold at DNB Markets; PT 37 kroner
* Sats Cut to Hold at Pareto Securities; PT 39 kroner
* Skanska Cut to Hold at Jefferies; PT 235 kronor
* SmartCraft Cut to Sell at SpareBank; PT 20 kroner
* Tallink GDRs Cut to Neutral at Swedbank; PT 70 euro cents
* Telecom Italia Cut to Neutral at New Street Research
>>> Initiation
>>> Initiation
* Halozyme Rated New Buy at William O'Neil
* Legrand Rated New Overweight at Oxcap; PT 124.90 euros
* Rexel Rated New Equal-Weight at Oxcap; PT 26.80 euros
* Scout24 Rated New Buy at William O'Neil
>>> Call
* Scout24 Rated New Buy at William O'Neil
>>> Call
- Kongsberg (KOZ TH) +4%
- Kongsberg 1Q Revenue Beats Estimates
- AUTO1 (AG1 TH) +2.9%
- ASML (ASME TH) +2.7%
- Siemens Energy (ENR TH) +2.2%
- Siemens Energy Projects Limited Impact From Import Tariffs
- AB InBev (1NBA TH) +1.9%
- *AB INBEV 1Q ORGANIC ADJ. EBITDA +7.9%, EST. +3.68%
- Qiagen (QIA TH) +1.9%
- Heidelberg Materials (HEI TH) +1.7%
- Heidelberg Materials 1Q Profit From Current Operations EU235M
- Adyen (1N8 TH) +1.7%
- ASM Intl (AVS TH) +1.5%
- Rational (RAA TH) +1.3%
- Infineon (IFX TH) -3.3%
- Infineon Sales Guidance Misses Estimates on Tariff Uncertainty
DAX:
- Siemens Energy (ENR TH) +2.1%
- Siemens Energy Projects Limited Impact From Import Tariffs
- BMW (BMW TH) +1.2%
- Infineon (IFX TH) -2.5%
- Infineon Sales Guidance Misses Estimates on Tariff Uncertainty
MDAX:
- AUTO1 (AG1 TH) +3.9%
- Hensoldt (HAG TH) +1.7%
- Hensoldt Cut to Neutral at Oddo BHF; PT 78 euros
- Evotec (EVT TH) +1.6%
- Delivery Hero (DHER TH) +1.4%
- Jenoptik (JEN TH) +1.3%
SDAX:
- Douglas AG (DOU TH) +2.7%
- SUSS MicroTec (SMHN TH) +2.3%
- SUSS MicroTec 1Q Sales Beat Estimates
- AlzChem Group AG (ACT TH) +2.1%
- Norma (NOEJ TH) +1.9%
- SGL (SGL TH) +1.8%
- Schaeffler (SHA0 TH) +1.2%
- Deutsche Beteiligungs (DBAN TH) +1.2%
- SMA Solar (S92 TH) -2.5%
- SMA Solar 1Q Ebitda EU24.6M Vs. EU49.9M Y/y
- Wacker Neuson (WAC TH) -2.7%
- Wacker Neuson 1Q Ebit EU12.1M Vs. EU36.9M Y/y
After Hours Summary: Busy earnings session; SEZL +31.3%, TPC +20.6%, APP +13.2%, FSLY +5.7%, KD +2.3 higher on earnings; G -15.3%, FTNT -12.1%, ARM -11.1%, SWKS -4% lower on earnings
After Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: SEZL +31.3%, TPC +20.6%, MEG +17.4%, LZ +14.5% (also $100 mln increase in share repurchase authorization), APP +13.2% (also to sell mobile gaming business to Tripledot), STKL +12.1%, UTI +11.5%, LEU +11.4%, ACVA +10%, MGNI +10%, GDRX +9.8%, RUN +9.6%, AOSL +9.2%, PBPB +8.8%, EVTC +8.5%, TTEK +8.5%, VAC +8.3%, HCAT +8.3%, MELI +8%, CMP +7.6%, RVMD +7.5%, BMBL +7.3%, ALVO +7.3%, QDEL +7%, DGII +6.8%, FSLY +5.7%, AXON +5.3%, CXW +5.3%, RELY +5.3%, PBI +5% (also increases dividend), ROOT +5%, ESTA +4.8% (also names new CEO), CDE +4.5%, VCYT +4.5%, ECPG +4.2%, MQ +3.9%, CORZ +3.8%, PAAS +3.5%, SDGR +3.5%, PCVX +3.4%, QTWO +3.2%, STR +3.2% (also increases buyback authorization by $300 mln), EE +3.1%, SONO +3.1%, GXO +3%, IIPR +2.9%, SITM +2.9%, KNTK +2.8% (also authorizes new $500 mln share repurchase program), ORA +2.8% (also to sell its Blue Mountain geothermal power facility), HLI +2.7% (also increases dividend), CF +2.4% (also authorizes new $2 bln share repurchase program), CVNA +2.4%, KD +2.3%, MIRM +2.3%, MKSI +2.3%, PAYC +2.2%, GNK +2.1% (also authorizes new $50 mln share repurchase program), HRB +2.1%, LB +2.1%, COHR +1.9%, RBA +1.9%, IONQ +1.7% (also to acquire Lightsynq; also to launch satellite quantum key distribution network), MRUS +1.5%, AMPL +1.4%, FSK +1.4%, UGI +1.3%, AG +1.2%, CW +1.2%, JXN +1.1%, HASI +1%, SNEX +0.9%, EOLS +0.8%, MFC +0.8%, ATO +0.7%, KGS +0.6% (also increases dividend), HHH +0.5%, JOBY +0.5%, RXST +0.3%, WES +0.3%, CPA +0.2%, ESE +0.2%, OXY +0.2%, USPH +0.2%, VRRM +0.2%, SMA +0.2%, ACAD +0.1%, BV +0.1% (also $100 mln share repurchase program), CSGS +0.1%, PRI +0.1%, QGEN +0.1% (also names new chairman; also to seek shareholder approval to initiate a dividend and new $500 mln repurchase)
Companies trading higher in after hours in reaction to news: HNST +8.3% (names new CFO), HUN +2.9% (CEO purchased 42,000 shares), DVAX +2.8% (issues statement to shareholders), CACI +1.2% (awarded additional work by the U.S. Navy), VLRS +1.1% (reports April traffic), LINE +1% (CIO/CTO purchased 4420 shares), WDC +0.7% (names new CFO), X +0.6% (Third Point (Daniel S. Loeb) confirms 5.41% passive stake), TTMI +0.5% (launches five new high-performance radio frequency components), PGRE +0.5% (announces sale of 25% interest in One Front Street), COST +0.2% (reports April comps), EIG +0.2% (CFO purchased 3,050 shares), RNR +0.1% (increases share repurchase auth to $750 mln), MTRN +0.1% (increases dividend), CDNS +0.1% (announces new class of AI processor)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: ERII -19.5%, FLNC -18%, G -15.3%, MG -14.8%, FTNT -12.1%, ARM -11.1%, ASLE -10.8%, CLF -9.8%, QNST -9.5%, SEMR -8.6%, STAA -5.2% (also initiates cost controls and restructuring; also withdraws previous outlook), ZG -5.2%, ADMA -5%, OEC -4.5%, BYND -4.3% (also withdraws guidance for FY25), SBGI -4.2%, SLNO -4.2% (also provides update on US launch of VYKAT XR), GT -4%, SWKS -4% (also names new CFO), DOX -3.4%, INFA -3.2%, NTR -3%, HP -2.9%, FNF -2.7%, VIR -2.7%, LILA -2.7%, LNW -2.5%, TNK -2.4% (also declares $1/sh special dividend), CIVI -2.3% (also names new COO), CPK -2.1%, FLUT -1.8%, MUSA -1.8%, PR -1.4% (also to acquire 13,320 net acres from APA), OR -1.2% (also increases dividend), AMC -1.1%, CENX -1.1%, KTOS -1%, FWRD -0.8%, BLBD -0.6%, MUR -0.6%, SNDK -0.6%, APA -0.5% (also to sell 13,320 net acres from PR), BROS -0.5%, CAR -0.5%, RGLD -0.4%, SYM -0.4%, CPRX -0.3%, EPR -0.2%, NATL -0.2%, VECO -0.2%, AWR -0.1%, CXT -0.1%, KAR -0.1%, SITC -0.1%
Companies trading lower in after hours in reaction to news: XGN -16.8% (stock offering), MYGN -0.7% (study published), ECO -0.7% (files for $500 mln mixed shelf offering; also files offering by selling shareholders), VRDN -0.6% (receives FDA Breakthrough Therapy Designation for Veligrotug), VECO -0.2% (received $35+ mln of orders for its AP300 Lithography systems), FHN -0.2% (files mixed securities shelf offering), BCO -0.1% (increases dividend), TKC -0.1% (wins tender)