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 revenue up 16% year-over-year, supported by double-digit growth in Norway, Spain, and Germany.

• Cash EBITDA increased to EUR 54 million from EUR 51 million, with margin up to 64% from 63%.

• Portfolio sales in Germany and Spain at over 20% premium to book value generated EUR 15 million in proceeds and strengthened the balance sheet.

• Annualized return on equity reached 14% (excluding non-recurring items), with reported ROE at 10%.

• Strong operational performance included onboarding new 3PC customers and successful IT and AI-driven system rollouts.

Financial highlights

• Q4 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 hit EUR 19 million, up 16% year-over-year, with Spain accounting for 60% of total 3PC revenue.

• Reported EBITDA was EUR 35 million with a 52% margin; cash EBITDA was EUR 67 million, down from EUR 130 million due to prior year divestments.

• Collection performance was 106% for Q4 and 102% for the year, excluding portfolio sales.

Outlook and guidance

• NPL investments for 2025 were EUR 59 million, below the EUR 100–200 million annual target, due to delayed investments pending refinancing.

• 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 and a landmark contract in Norway.

• Market for NPL portfolio sales remains active, with growth in book value anticipated.