Nike – Between Hope and Hard Facts
Nike’s third quarter performed better than feared, with earnings per share of USD 0.35 significantly exceeding expectations. But appearances can be deceiving. The operating business is suffering from strategic cutbacks. The targeted reduction of old inventory of cult sneakers cost 5 percentage points of growth. North America stands out positively, where the wholesale business grew by 11%. Direct sales to end customers, on the other hand, are weakening, with a 7% decline. The gross margin fell to 40.2%, weighed down by tariffs and increased discount promotions.
While the home region is showing initial signs of success, the international situation remains tense. In China, management expects a slump of around 20% in the fourth quarter, deliberately driven by reduced shipments and market consolidation. Business is also sluggish in Europe. Operations there remain highly dependent on promotional campaigns, and inventory levels are not expected to be normalized until the end of the quarter. Positive developments include the running segment, which grew by over 20%, and the new Mind platform, whose production has already doubled.
For the fourth quarter, the company forecasts a revenue decline of 2–4%. The restructuring measures are not expected to be completed until the end of the calendar year. The operating margin is likely to remain under pressure for the time being before a recovery sets in starting in the second quarter of 2027. Investors can count on a stable dividend payment, most recently at USD 0.41 per share. This marks the 24th consecutive year of an increase. That corresponds to a yield of just under 3.9% at a current share price of USD 42.62.
RE Royalties – A Quiet Giant in the Shadow of the Energy Transition
This business model is typically associated with the commodities sector. RE Royalties has now mastered it perfectly. Instead of building wind turbines or solar parks itself, the company finances developers and collects revenue-based royalties in return, across the entire lifespan of the projects. The portfolio? Currently, there are more than 120 active royalties from solar, wind, storage, and hydroelectric power plants in North and South America as well as Asia. The model is attractive to project developers because it provides capital without diluting equity. For shareholders, it creates a stream of predictable, long-term cash flows with manageable operational risk.
On March 27, the Executive Board initiated a formal review of strategic alternatives, supported by PricewaterhouseCoopers. Options under consideration include a sale of the company, co-investments, or an optimization of the capital structure. Management views this as the logical next step after 10 years of growth. Specifically, COO Peter Leighton estimates the pipeline at approximately CAD 20 million in letters of intent for high-quality projects, plus an additional CAD 200 million in investment opportunities currently under review. This move is not driven by weakness, but rather to highlight the intrinsic value of the portfolio.
The recent adjustment of the dividend policy from quarterly to an annual payment gives RE Royalties more financial flexibility. Instead of ongoing small distributions of CAD 0.01 per quarter, the company can tie up capital for longer and invest it in new projects. The yield remains attractive at around 9.5% despite the recent rise in the share price. For shareholders betting on the decarbonization of the energy sector, this presents an exciting entry point. The strategic review could be the catalyst that propels the company to the next level of growth without losing sight of a solid, albeit less frequent, dividend. The stock is currently trading at CAD 0.42.
Freenet – Record Growth, but Slightly Missed Targets
The mobile operator and TV provider can point to two impressive records for 2025. For the first time, the company acquired over 300,000 organic net new customers in the postpaid segment. waipu.tv also delivered strong results. The IPTV business increased its adjusted EBITDA from 0 to EUR 36 million. Consolidated key figures remained nearly stable at EUR 515 million in EBITDA and EUR 292 million in free cash flow, but fell slightly short of the company’s own forecasts. A new CEO and a streamlined executive board are now driving the realignment forward. Organic growth is well above the industry average. The operational foundation is therefore sound, even if the targets were not quite met.
An existing agreement with a network operator clouds the picture. A negative impact of EUR 13 million had already been factored in for 2025. In the years 2026 through 2028, an additional burden of up to EUR 50 million could arise. Management is actively negotiating, but the risk remains. At the same time, the Group is pursuing an “AI-first” strategy to automate processes. The integration of mobilezone Germany also brings over 240,000 new customers and strong online sales channels such as Sparhandy. How negotiations with the network partner develop remains the key uncertainty for the coming quarters.
For 2026, Freenet expects stable to slightly declining EBITDA between EUR 500 million and EUR 530 million. The IPTV segment, however, is expected to continue growing. The Executive Board has set ambitious targets for 2028. EBITDA is expected to reach at least EUR 620 million with EUR 340 million in free cash flow, driven primarily by waipu.tv. Shareholders will benefit from this. The dividend is rising for the fifth consecutive year to EUR 2.07 per share. In addition, the company guarantees a minimum payout of EUR 2 or 80% of free cash flow for 2026 through 2028, whichever is higher. Currently, a share costs EUR 27.52.
Nike impresses with a stable dividend that has been rising for 24 years, even though restructuring pressures are weighing on margins in the short term. RE Royalties offers long-term cash flows and a strategic realignment with nearly double-digit returns thanks to its unique licensing model. Freenet shines with record numbers of new customers and a guaranteed minimum dividend of EUR 2 through 2028, although risks related to network partners remain. Those seeking reliable passive income will find diverse yet solid approaches in these three stocks—ranging from traditional to innovative.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as “Relevant Persons”) currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a “Transaction”). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
In this respect, there is a concrete conflict of interest in the reporting on the companies.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is also a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.