Intrum (INTRUM) Q2 2026 earnings summary

Executive summary

• SEK 7.5bn capital raise and €2.4bn portfolio sale led to S&P and Moody's rating upgrades, strengthening the balance sheet and supporting deleveraging.

• Operational transformation continues, with automation and efficiency measures reducing FTEs by 8% year-over-year and cost reductions on track.

• Servicing income growth in Traditional markets was offset by declines in Specialised markets, making flat Servicing income in 2026 more challenging.

• Accelerated operational excellence program leveraging scalable, standardized solutions and AI-driven efficiencies across more countries.

• Balance sheet improvements increased financial flexibility and support for future investments.

Financial highlights

• Total income for Q2 2026 was SEK 4,053m, down 4% year-over-year; net income was SEK 178m, a 45% decrease year-over-year.

• Servicing EBITDA margin stable at 25% for the third consecutive quarter; long-term target is 30%-35%.

• Total costs down 2% year-over-year, with underlying cost discipline maintained despite Savoy Group consolidation adding SEK 100m/€100m to costs.

• Net financial expense improved by 25%-33% due to Savoy impairment reversal and FX gains.

• One-off tax expense of nearly €100m/SEK 97m in Italy due to a tax audit.

Outlook and guidance

• Servicing income outlook for 2026 is now slightly behind plan due to continued headwinds in Specialised markets.

• Investment pace expected to increase post-capital raise, with more deals anticipated in the second half.

• Targeting a servicing leverage ratio of 3.0x by 2028 and total costs of SEK 10-11bn by 2030.

• Acceleration of operational excellence program will benefit cost structure post-2026, with potential redundancy costs.

• Management remains focused on disciplined execution, operational improvements, and further cost reductions.