Grenke (GLJ) Q2 2025 earnings summary

Executive summary

• Leasing new business reached €1.6 billion in H1 2025, with a CM2 margin of 17.3%, and customer base exceeded 700,000 leases, with receivables near €7 billion.

• Group earnings for H1 2025 were €26.2 million, with a stable equity ratio of 15.9%.

• Strategic milestones included the final takeover of all franchise companies and ongoing transfer of the factoring business to Teylor.

• Cost-income ratio improved to 56.1% in Q2 2025, and digital acquisitions in Milan and partnership with Intesa Sanpaolo supported growth.

• Despite a challenging macroeconomic environment with high insolvency rates, the company maintained strong performance and digitalisation focus.

Financial highlights

• Operating income for H1 2025 increased by 14% to approximately €318 million, outpacing cost growth of 12.6%.

• Group earnings for H1 2025 were €26.2 million, down from €45.0 million in H1 2024, with a positive Q2 trend.

• Cost-income ratio improved to 56.1% in Q2 2025, and loss rate increased to 1.7% from 1.1% in H1 2024.

• Q2 group earnings grew over 50% sequentially, signaling a trend reversal, but earnings per share dropped to €0.36.

• Risk provisions and settlements remained elevated at €94.7 million, reflecting higher defaults.

Outlook and guidance

• 2025 guidance confirmed: leasing new business expected at €3.2–3.4 billion, group earnings €71–81 million, and CM2 margin above 16.5%.

• Cost-income ratio is expected to remain below 60% for 2025, with a medium-term target below 55%.

• Loss rate expected to normalize to 1.6% annually.

• Positive Q2 earnings trend supports confidence in meeting full-year targets.

• Continued focus on small-ticket leasing, digitalisation, and international expansion.