Georgia Capital (CGEO) H1 2026 earnings summary

Executive summary

• NAV per share reached a record GEL 175.12, up 13.1% quarter-on-quarter, driven by strong operating performance in large private portfolio companies and a 22.1% increase in Lion Finance Group's share price.

• Aggregate revenues of large private portfolio companies increased 19.1% year-over-year in 2Q26, marking eight consecutive quarters of double-digit growth.

• Disposal of the housing development business reduced leverage and improved risk profile, with net debt-to-EBITDA for emerging and other businesses (ex. renewables) improving from 3.8x to 2.0x.

• S&P upgraded the corporate credit rating to BB (Stable), matching Georgia's sovereign rating.

• Completion of GEL 700 million capital return programme and launch of a new GEL 1 billion capital allocation programme through 2029.

Financial highlights

• NAV per share in GBP rose 15.6% quarter-on-quarter to 50.10; five-year NAV per share CAGR reached 26.3% in GEL, 30.9% in USD, and 32.1% in GBP as of June 2026.

• Aggregate Q2 revenue growth was 19.1% year-over-year; aggregate Q2 EBITDA grew 21.2%; first half EBITDA up 24%.

• Net income for 2Q26 was GEL 690.7 million, up 5.5% year-over-year; 1H26 net income was GEL 720.6 million.

• Cash and liquid funds balance increased 2.4x quarter-on-quarter, driven by Lion Finance Group share sell-down, dividend income, and business disposals.

• Dividend income in 1H26 was GEL 86.3 million, with GEL 61.8 million from Lion Finance Group.

Outlook and guidance

• GEL 1 billion capital allocation programme to be deployed by end of 2029, split between buybacks/dividends and investments, mainly in Georgia and Armenia.

• At least half of the new programme to be allocated to capital returns; strong liquidity and robust free cash flow expected to support further capital returns and investments.

• Dividend income outlook for the year is GEL 200 million, with expectations for continued growth.

• NAV per share expected to continue strong growth, supported by robust EBITDA generation.

• NCC ratio targeted to remain below 10%.