Grenke (GLJ) Q3 2025 earnings summary

Executive summary

• Leasing new business volume grew 9.3% year-over-year to €2.4 billion for Q1–Q3 2025, with a CM2 margin of 17.1% and strong performance in DACH, Western, and Southern Europe, but a decline in Northern/Eastern Europe.

• Group earnings after tax for Q1–Q3 2025 were €48.6 million, down 14.7% year-over-year, but Q3 2025 earnings rose 86.7% to €22.4 million, showing a positive quarterly trend.

• Cost discipline improved the cost-income ratio to 55.4% for Q1–Q3 2025, with Q3 2025 at 53.5%, already meeting midterm targets.

• Equity ratio remained stable at 16.0%, supporting a solid capital base.

• The company maintained a profitable growth strategy, stable equity, and improved efficiency.

Financial highlights

• Q3 2025 leasing new business was €781 million, up from €739 million in Q3 2024, with net interest income up 12.2% for Q1–Q3 2025.

• Operating result before risk provisions rose 19.7% for Q1–Q3 2025, with group earnings for the period at €48.6 million.

• Loss rate increased to 1.8% for Q1–Q3 2025, reflecting higher defaults and portfolio growth.

• Cash position normalized to €775 million at September 30, 2025, after investments in new lease receivables.

• Embedded value of leasing contract portfolio was €1.6 billion.

Outlook and guidance

• 2025 guidance reaffirmed: leasing new business expected at €3.2–3.4 billion, CM2 margin above 16.5%, cost-income ratio below 60%, and group earnings between €71–81 million.

• Group earnings expected at the lower end of the range if the loss rate remains at 1.8%.

• Equity ratio projected to remain around 16% for the full year.