Commerzbank Unveils €1 B Buyback as Mixed German Earnings Roll In

Germany’s earnings season delivered a mixed picture, with lenders, industrials and drugmakers reporting results that largely beat profit expectations while keeping a cautious eye on soft demand and restructuring costs. Commerzbank said second-quarter net income fell 14% from a year earlier to €462 million, yet topped analysts’ €352 million consensus and prompted management to apply for a share buyback of up to €1 billion. The Frankfurt-based lender also nudged its 2025 profit goal to about €2.5 billion, underscoring its stand-alone strategy as it fends off a potential takeover approach from UniCredit. Chipmaker Infineon posted €3.70 billion in fiscal third-quarter revenue, fractionally shy of estimates, but its €668 million segment profit and 18% margin beat forecasts. Management reiterated full-year revenue guidance of roughly €14.6 billion and forecast fourth-quarter sales of around €3.9 billion, citing persistent caution among automotive customers despite easing inventory gluts. Siemens Energy reported a 6% rise in third-quarter revenue to €9.75 billion and logged a record €16.61 billion in orders, allowing the power-equipment supplier to target the upper end of its 13%–15% growth range for full-year comparable sales, buoyed by U.S. demand for gas turbines and grid technology. Auto-parts maker Continental missed consensus on second-quarter sales and margins, booking €9.6 billion in revenue and a 6.2% adjusted EBIT margin. The company confirmed plans to spin off its Automotive division on 18 September, aiming to unlock value after a prolonged industry downturn. Bayer benefited from unexpectedly strong demand for its ageing eye-care and blood-thinning medicines, lifting second-quarter adjusted EBITDA to €2.11 billion and widening its margin to 19.6%. The pharmaceuticals and crop-science group raised its outlook for the year as it pushes ahead with a strategic revamp.