Germany · Delayed Price · Currency is EUR Grenke AG Earnings Call Transcripts
Fiscal Year 2025
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Group earnings reached EUR 71.8 million in 2025, with record leasing new business and improved cost efficiency despite elevated risk provisions. Guidance for 2026 targets further growth and stable profitability, while long-term focus remains on achieving a 10% ROE by 2030.
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Leasing new business grew 9.3% to EUR 2.4 billion with a strong CM2 margin, while cost discipline improved the cost-to-income ratio to 55.4%. Group earnings are on track for annual targets, though elevated loss rates persist, and disposal gains are expected to fade out in coming quarters.
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Strong leasing growth and improved cost efficiency drove a 14% rise in operating income and a 50% sequential increase in Q2 group earnings. The company is on track for its annual targets, with a stable equity ratio and robust cash position, despite elevated risk provisioning.
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Leasing new business grew 10.5% year-over-year with a strong CM2 margin, while group earnings reached EUR 10.2 million amid elevated risk provisions. Guidance for 2025 remains unchanged, with robust capital and funding positions supporting continued growth.
Fiscal Year 2024
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Record leasing new business exceeded EUR 3 billion in 2024, but higher insolvencies drove up risk provisions and limited profit growth. Guidance for 2025 targets double-digit new business growth, stable loss rates, and no equity issuance, with digitalization and efficiency as strategic priorities.
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Q3 2024 saw increased insolvencies in core markets, leading to higher risk provisions and a downward revision of earnings guidance. Despite these challenges, leasing demand and new business growth remain robust, with strong liquidity and ongoing cost discipline.