Axactor (ACR) Q2 2025 earnings summary

Executive summary

• Refinancing completed with RCF extended by two years and a new €125M bond issued at a lower interest rate, significantly reducing refinancing risk and positioning for growth and NPL investments.

• Collection performance reached 102% for the quarter, exceeding forecasts for the second consecutive quarter.

• 3PC segment achieved 14% year-over-year revenue growth, with large new contracts secured and strong momentum in Norway and Spain.

• Annualized return on equity was 8% (12% adjusted for non-recurring items); year-to-date ROE was 10%.

• Full-scale IT infrastructure migration was completed on time and under budget, enhancing operational resilience and efficiency.

Financial highlights

• Gross revenue was €81M, down 9% year-over-year due to Spanish portfolio sales; excluding the sale, revenue declined 1%.

• Group total revenue reached €64M, up from €59M in Q2 2024; EBITDA margin stood at 51% (54% excluding non-recurring items).

• Cash EBITDA was €49.9M, down from €61.1M in Q2 2024 due to Spanish portfolio sales.

• Net profit after tax for Q2: €6.9M; EPS: €0.023.

• Equity ratio at 27%; book value of NPL portfolios: €1,092M; ERC: €2,320M.

Outlook and guidance

• No major debt maturities until late Q3 2027; RCF matures mid-2028.

• Focus shifting to NPL investments with expected pickup in accretive investments; annual investment guidance of €100–200M for 2024–2026 is reiterated.

• 3PC segment expected to continue strong growth, especially in Norway, with most new contract growth front-end loaded into 2026.

• Quarterly OpEx expected to decrease by €800,000 post-IT migration, with full savings from Q4 2025.

• NPL collection performance stabilized above 100%, with continued stable performance expected through 2025.