Deutsche Börse AG

Reported H1 net revenue grew 11% excluding treasury results, and H1 EBITDA grew 16% excluding treasury results. Net profit attributable to Deutsche Borse shareholders increased 12% to EUR 1.2 billion, and cash EPS grew 12% to EUR 6.73. For Q2, net revenue grew 9% excluding treasury results and 7% including treasury effects; EBITDA grew 13% excluding treasury results and cash EPS increased 13% to EUR 3.33. Operating costs rose 4% in H1, including around EUR 20 million of exceptional costs tied to the Allfunds acquisition; Q2 operating costs rose 4% to EUR 644 million, including EUR 7 million of exceptional costs. Full-year 2026 guidance was confirmed for EUR 5.7 billion of net revenue and EUR 3.1 billion of EBITDA excluding treasury results, while treasury result is now expected to exceed EUR 0.7 billion, implying total net revenue above EUR 6.4 billion and all-in EBITDA above EUR 3.8 billion. Management continues to expect operating costs to rise about 3% in 2026 excluding exceptional Allfunds-related costs.

Stephan Leithner emphasized that the first half was stronger than expected, with broad-based secular growth, accelerating operating leverage, and a higher outlook. He framed the quarter as a confirmation that the post-Q1 normalization was expected and manageable, and highlighted that six of eight business areas grew in Q2. His tone was constructive and confident, especially around European capital markets reform, digital assets/tokenization, and Deutsche Borse’s ability to benefit from long-term structural trends.

Jens Schulte focused on the quality of earnings growth and the translation of revenue into profit. He pointed to H1 EBITDA margin expansion to 61%, H1 net profit of EUR 1.2 billion, and cash EPS of EUR 6.73, while noting that underlying operating cost growth was 3% excluding exceptional Allfunds-related costs. In Q2, he highlighted 4% operating cost growth to EUR 644 million, treasury results of EUR 205 million, a negative EUR 42 million financial result due to higher interest expense from the March bond issuance, and reiterated that the treasury upgrade is driven by the changed rate outlook and higher cash balances.

Analysts pressed on Security Services margin sustainability and the drivers behind the rise in collateral management and settlement revenues; management said the custody margin is sustainable and that growth is being driven by higher client awareness of collateral optimization, improved collateral basket tools, and retail activation. Questions on SimCorp centered on strong on-premise revenue and the ARR/revenue mix; management said on-premise strength was due to an exceptional renewal cycle, while the strategic shift to SaaS remains intact and the revenue/ARR gap should narrow over time, helped by AI and the accounting change from next year. Analysts also probed ESG and proxy advisory pressure, and management said renewal dynamics remain high with only selected cases of pushback, while pricing is a minor lever across the portfolio rather than a major growth driver.