Intrum AB (publ)

Management did not give a full income statement in the prepared remarks, but they did state that costs were down 2% year over year, Servicing income was down 3% in total with organic growth at minus 2% and Savoy consolidation at minus 1%, and the Servicing EBIT margin remained 25%. Johan Akerblom also said F fees declined 8% year over year, total costs were 11.9% on a rolling 12-month basis, and the service leverage ratio on a pro forma basis improved from 6.2 to 4.3. On investments, the company reported SEK 197 million of new portfolio investments in the quarter and SEK 102 million of collection versus SEK 100 million in Q1. Masih Yazdi said FX hedging offset about SEK 400 million of FX swings in Q2, and there was a one-off tax expense of almost SEK 100 million in Italy. Forward-looking, management said the 2026 Servicing income target is now more difficult to achieve, the servicing margin target remains 30% to 35% by 2030, and cost ambitions remain 10% to 11% of Servicing income by 2030; they also said the FTE cost base in scope is targeted to fall 35% to 40% over the next 3 years.

Johan Akerblom framed Q2 as the second quarter of executing the new strategy, with the main priority still being leverage and the balance sheet. He emphasized the capital raise, portfolio sale, and improved ratings as proof that the plan is working, while also saying operational transformation is starting to pay off through lower fees and better efficiency. His tone was constructive but more cautious on the top line, especially for Spain, Greece, the U.K., and Germany, and he repeatedly stressed that the company will accelerate cost actions and broaden the transformation program.

Masih Yazdi focused on execution versus plan and the mechanics behind the quarter. He said income was down because of weaker Servicing and the investment book, while costs were down 2% year over year, with Savoy adding about SEK 100 million of quarterly cost versus Q2 last year. He also highlighted that hedge accounting began in May, reducing FX volatility on debt by offsetting about SEK 400 million of FX swings in Q2, and noted a one-off Italy tax charge of almost SEK 100 million. On capital allocation and financing, he said the company will use liquidity from the capital raise and asset sale for tenders on 2027 and 2028 debt, while also looking to refinance the RCF over the next 6 to 12 months.

Analysts focused heavily on whether weakness in Greece and Spain is temporary or structural, and management answered that Spain’s real-estate-related runoff will continue and should remain a headwind, while Greece is more stable but has limited new business potential. They also addressed whether weaker Servicing growth means changing the long-term cost targets; Masih Yazdi said the 2030 cost range of SEK 10 billion to SEK 11 billion still stands, but a softer top line points toward the lower end of that range, and any benefit from accelerating the program should mainly show up after 2026. On Germany, management said onboarding delays are tied to IT/platform stabilization rather than the operational excellence program itself, and that there is a pipeline but they are being cautious about adding new clients until the platform is steadier.