W.A.G payment solutions (EWG) H2 2025 earnings summary

Executive summary

• 2025 marked a pivotal year with the launch of Eurowag Office, a unified digital platform for SME fleet operators, reducing admin workload by up to 50% and operational costs by up to 10%.

• 35% of customers have migrated to the new platform, with the majority expected by year-end 2025 or 2026.

• Customer satisfaction improved, with NPS rising 3.8 points to 43.8, reflecting strong adoption despite complex migrations.

• The business model shifted further toward recurring revenues, with subscription revenue now 24% of net revenues.

• Net leverage reduced to 1.9x, reflecting robust cash generation and disciplined capital allocation.

Financial highlights

• Net revenue grew 12.9% year-over-year to EUR 330.1 million, driven by a 52.3% increase in toll revenues.

• Adjusted EBITDA rose 8.5% to EUR 132.1 million; adjusted cash EBITDA increased 10.5% to EUR 98.0 million, with margins of 40% and 29.7% respectively.

• Adjusted profit before tax increased 11% to EUR 51.4 million; adjusted basic EPS up 3.9% to EUR 0.048.

• Free cash flow improved to EUR 177.9 million, up from EUR 147.3 million in FY 2024.

• Special dividend of EUR 24.3 million paid in July 2025; proposed EUR 12 million special dividend for FY 2026.

Outlook and guidance

• For FY 2026, expects low double-digit net revenue growth and adjusted EBITDA margin around 40%.

• Adjusted cash EBITDA guidance set at EUR 105–115 million; capitalized R&D to remain below EUR 50 million.

• Net leverage targeted below 2x, within the 1.5x–2.5x range.

• Second special dividend of 1.5p per share (~GBP 12 million) recommended, subject to AGM approval.

• Focus on migrating majority of customers to the platform by year-end 2026 and scaling post-migration.