KRUK Spólka Akcyjna (KRU) Q4 2025 earnings summary

Executive summary

• Net profit for 2025 reached PLN 1,086 million, up 1% year-over-year, with profit before tax at PLN 1,136 million (+12% y/y) and cash EBITDA rising 12% to PLN 2,665 million.

• Revenue increased 10% year-over-year to PLN 3,191 million, driven by strong recoveries and portfolio revaluations, especially in Spain (+66%) and Italy (+21%).

• Investments in debt portfolios totaled PLN 2,223 million, down 21% year-over-year, reflecting a strategic scale-back in Spain.

• Recoveries from purchased portfolios reached a record PLN 3,920 million (+11% y/y), with over half from foreign markets and strong performance in Italy and Poland.

• The Group reaffirmed its 2025-2029 strategy, targeting PLN 15 billion in new investments and a 20% ROE.

Financial highlights

• Cash EBITDA rose 12% year-over-year to PLN 2,665 million; EBITDA was PLN 1,643 million (+11% y/y).

• Operating profit and profit before tax grew by about 12% year-over-year.

• Operating expenses increased 8% year-over-year to PLN 1,547 million, mainly due to higher service costs and salaries.

• Net debt/Cash EBITDA ratio at 2.6x, below the 3.0x strategic cap.

• Portfolio carrying amount at PLN 11.6 billion (+11% y/y); ERC at PLN 26.2 billion.

Outlook and guidance

• Management targets PLN 15 billion in investments over 2025-2029 and PLN 34 billion in total recoveries by end-2025.

• Plans to increase investments in 2026 to between PLN 2.4–2.7 billion, with a focus on returning to higher investment in Spain.

• Continued digital transformation, with PLN 68.5 million spent in 2025 and full IT system functionality targeted by 2029.

• Strategic goal of 12% annual profit before tax growth through 2029, with investment targets flexible based on IRR achievement.

• Management expects continued sustainable growth, regular dividend payouts, and profitability improvements, subject to maintaining a net debt-to-cash EBITDA ratio at or below 3.0.