Taaleri (TAALA) Q2 2026 earnings summary

Executive summary

• Garantia's insurance portfolio and utilization rates, especially in residential mortgage guarantees, grew over 20% year-over-year, with a 24% increase in utilization rate and strong international expansion in non-payment insurance contracts.

• Net income from investment operations was robust, mainly due to strong equity market performance, while the investment segment saw negative revenue and operating profit from fair value changes, notably in the Texas wind farm investment.

• Private asset management progressed as planned, with new investments, active fund management, and the completion of the Nordic Science Investments acquisition, marking entry into venture capital.

• A significant follow-on investment in Fintoil was announced, with a €30 million commitment expected to close in Q3 2026, strengthening balance sheet utilization.

• Strategy execution continued with expansion into private credit and new product development.

Financial highlights

• Revenue grew 3.9% year-over-year to EUR 65.6 million; Q2 2026 revenue was EUR 13.2 million, and H1 2026 revenue rose 20.2% to EUR 25.8 million.

• Operating profit declined 4.9% to EUR 27.6 million LTM, but H1 2026 operating profit rose 33.2% to EUR 6.6 million; Q2 operating profit was EUR 4.4 million.

• Garantia's insurance service result rose 26.5% to EUR 3 million; net income from investment operations reached EUR 8.6 million.

• Combined ratio for Garantia was 36.7%, with premiums received up nearly 20% LTM; H1 2026 combined ratio improved to 29.1%.

• Investments at fair value totaled EUR 236.1 million; group equity ratio remained strong at 70.6%.

Outlook and guidance

• No changes to 2026 outlook: renewable energy earnings expected to decline versus 2025 due to lower management fees and planned fund exits; exit processes will impact results.

• Garantia insurance revenue projected to grow in 2026, with stable profitability; investment returns depend on market conditions.

• Investment segment results will remain highly sensitive to market-driven fair value changes and final exits.

• Group operating expenses expected to remain stable.

• Long-term targets include 12% average annual growth in operating profit from continuing earnings, ROE above 15%, and at least 50% dividend payout.