Axactor (ACR) Q4 2025 earnings summary

Executive summary

• Q4 saw revenue growth in both NPL and 3PC segments, with NPL gross revenue up 3% year-over-year and 3PC up 16%, supported by strong collection performance at 106% for Q4 and 102% for the year.

• Cash EBITDA increased to EUR 54 million from EUR 51 million last year, with margin rising to 64%.

• Portfolio sales in Germany and Spain at a premium to book value strengthened the balance sheet and renewed the NPL book.

• 2025 highlights included 19% organic growth in 3PC, improved collection performance, successful refinancing, and a 30% reduction in IT infrastructure costs.

• Annualized return on equity reached 10% for Q4 2025, or 14% excluding non-recurring costs, driven by revenue growth and reduced interest expenses.

Financial highlights

• Q4 2025 gross revenue was EUR 99 million, down 39% year-over-year due to portfolio sales, but underlying like-for-like growth was 6%.

• NPL segment gross revenue was EUR 80 million, with 3% underlying growth after adjusting for sales.

• 3PC segment revenue was EUR 19 million, up 16% year-over-year, with double-digit growth in Norway, Spain, and Germany.

• Reported EBITDA was EUR 35 million (52% margin); Cash EBITDA was EUR 67 million, down from EUR 130 million last year due to fewer large portfolio sales.

• Return on equity for 2025 was 10%, or 12% excluding non-recurring items, aligning with the 2026 target.

Outlook and guidance

• NPL investments for 2025 were EUR 59 million, below the EUR 100–200 million target, but expected to increase as refinancing is complete.

• Targeting minimum 12% ROE and maximum leverage ratio of 3.5x by end of 2026.

• No dividend will be paid for 2025 to prioritize deleveraging and improve funding costs.

• Strong 3PC growth expected to continue in 2026, supported by new large agreements, especially in Norway.

• Operational optimization and IT enhancements are underway to further improve efficiency.