Grenke (GLJ) Q1 2025 earnings summary

Executive summary

• Leasing new business grew by 10.6% year-over-year to EUR 740.6 million in Q1 2025, with a strong CM2 margin of 17.6%, exceeding the target of 16.5%.

• Group earnings after taxes declined to EUR 10.2 million, impacted by elevated defaults, higher risk provisions, and credit losses.

• Cost-income ratio improved to 56.8% from 58.1% year-over-year, reflecting higher income and stabilized costs.

• Equity ratio remained stable at 16%, supported by the reissuance of an AT1 bond.

• Factoring business declined 8.6% year-over-year as the company moves forward with its divestment; an agreement was reached with Teylor AG for the sale.

Financial highlights

• Operating income increased by 16.6% year-over-year, with operating result before risk provisions rising 20.3% to EUR 67.0 million.

• Group earnings dropped to EUR 10.2 million, reflecting a higher loss rate of 1.9% (Q1 2024: 1.1%).

• Cash and cash equivalents at the end of Q1 2025 stood at EUR 951.4 million.

• Interest and similar income from financing business rose 20.9% year-over-year to EUR 159.8 million.

• Earnings per share (basic/diluted) was EUR -0.02, down from EUR 0.22 in Q1 2024, impacted by hybrid capital coupon payments.

Outlook and guidance

• 2025 guidance reiterated: leasing new business EUR 3.2–3.4 billion, group earnings EUR 71–81 million, equity ratio ~16%.

• Loss rate for 2025 guided at 1.6%.

• CM2 margin expected to remain above 16.5%; cost-income ratio below 60%.

• Focus remains on small-ticket leasing, digitalisation, and international expansion, especially in core and future growth markets.