Stockholm, May 19, 2026, 11:01 (CEST)
- Shares of Evolution jumped roughly 9% in early Stockholm trading after the company announced a €2 billion buyback plan.
- The programme is starting right away and may continue up to the 2027 annual meeting. It has a 10% limit on treasury shares.
- The move is sharper than the OMXS30 index, which is up but by a smaller amount.
Evolution AB rallied in Stockholm on Tuesday, with the online casino tech company unveiling a €2 billion share buyback. The move hands shareholders a big capital return after months of market worry about regulation and weaker European growth.
Evolution shares traded at 723.80 Swedish crowns, up 9.07% at 10:51 a.m. local, after earlier reaching 746.60 crowns in the session, Google Finance data showed. The company said late Monday its board had decided to kick off the buyback right away.
Buybacks are in focus now as Evolution sets out its 2026 capital plans. The board in March proposed no dividend for 2025, moving away from an earlier policy to pay out at least half of net profit every year.
Stockholm shares traded higher, though gains were limited. The OMX Stockholm 30 index rose 0.75% to 3,078.50, according to Nasdaq index data.
Evolution jumped about 9.5%, outpacing other gaming stocks, according to MarketScreener’s sector table. Aristocrat Leisure was up 0.7%, while Galaxy Entertainment slipped. The data points to the buyback as the main reason for the rally, rather than a wider sector move.
Evolution has approval to buy back shares on Nasdaq Stockholm or another market up to the 2027 AGM. The company can hold up to 10% of its own stock, or 19,922,661 shares, under Swedish law and the AGM mandate. That figure is based on 199,226,613 shares outstanding, with no treasury shares when the plan was announced.
Evolution has set up a €300 million senior unsecured revolving credit facility with J.P. Morgan SE and Citibank Europe, giving it a buffer for extra funding. The company said the facility should help keep its financial flexibility as it carries out what it described as a material change to its capital structure.
Kepler Cheuvreux told Investing.com this was one of the biggest buybacks ever seen in Sweden, at about 16.5% of Evolution’s €12.1 billion market cap. That size is likely why shares jumped so hard at the open.
Balance sheet stood out. Evolution said it held €1.10 billion in cash and cash equivalents at March’s close. First-quarter operating cash flow came in at €345.8 million. Revenue was down 1.5% to €513.0 million. EBITDA fell 1.9% to €335.3 million. Margin stayed high at 65.4%.
But the buyback leaves the operating questions in place. CEO Martin Carlesund said in the first-quarter report that Asia continues to see “volatility and uncertainty.” He called Europe the “clear disappointment” after ring-fencing and regulatory volatility hit player activity. Evolution also singles out gaming law changes as a top risk to future earnings.
Analysts are divided on the stock. MarketScreener data puts the average target for 16 analysts at €60.90 and the consensus rating at “Hold.” That compares to the last close at €60.60. Targets in the group start at €45.02 and reach as high as €97.37. MarketScreener
Next up is execution. Evolution needs to keep buying and see the business hold up in Europe and Asia. If that happens, share count drops and cash generation stays key. But if rules tighten again, or if traders say the rally already covers much of the capital return, Tuesday’s gains could get tougher to hold.
