Grenke (GLJ) Q4 2025 earnings summary

Executive summary

• Achieved group earnings of EUR 71.8 million in 2025, meeting guidance despite challenging macroeconomic and geopolitical conditions and elevated corporate insolvencies.

• Leasing new business grew to a record EUR 3.3 billion, up 7.8% year-over-year, with strong performance in Germany, France, Italy, and international markets.

• Cost discipline and digitalization initiatives improved the cost-income ratio to 55.2%.

• Leadership strengthened with a new COO and strategic M&A activity, including franchise acquisitions and the sale of the factoring segment.

• Set a long-term target of 10% return on equity by 2030, focusing on sustainable, double-digit profitability.

Financial highlights

• Operating income rose by 14.7% to over EUR 660 million, outpacing cost growth.

• Operating result improved by 26% year-over-year; cost-income ratio improved by 4 percentage points to 55.2%.

• Return on equity after tax remained stable at 5.2%.

• Loss rate increased to 1.7%, above the long-term average of 1.5%, due to higher defaults and insolvencies.

• Embedded value including equity increased to EUR 1.6 billion, or EUR 36.40 per share.

Outlook and guidance

• 2026 group earnings guidance set at EUR 74–86 million; leasing new business targeted at EUR 3.4–3.6 billion.

• Cost-income ratio expected to remain around 55%, with loss rate guidance at 1.6–1.7%.

• Long-term goal remains a 10% return on equity by 2030, with a plan to increase ROE by 1 percentage point annually.