Intrum AB

Management did not give a full earnings table in the call, but it said costs were down 2% year-on-year, F fees were down 8% year-on-year, Servicing EBIT margin was 25%, total costs were at 11.9% on a rolling 12-month basis, and pro forma service leverage improved from 6.2 to 4.3. On Servicing, management described overall external Servicing income as down 3%, with organic growth of minus 2%, Savoy consolidation at minus 1%, and FX neutral. It also said the quarter included around SEK 100 million higher costs from Savoy, and a one-off tax expense in Italy of almost SEK 100 million. Forward-lookingly, management said 2026 flat Servicing income is becoming more challenging, but that investment pace should rise over the next couple of quarters and that refinancing/tender activity on the 2027 and 2028 bonds will continue over the next 6 to 12 months.

Johan Akerblom framed Q2 as the second quarter of execution on the new strategy, with the main emphasis on fixing leverage and strengthening the balance sheet. He highlighted the capital raise, the portfolio sale, and the rating upgrades from S&P and Moody’s as proof the plan is working, while also stressing operational transformation, automation, and AI-driven efficiency improvements. His tone was constructive but more cautious on growth, especially in Spain, Greece, Germany, and the U.K., where he acknowledged persistent headwinds and said 2026 flat Servicing income will be harder to deliver.

Masih Yazdi focused on the financial mechanics behind the quarter: income fell because of weaker Servicing and the investment book, while costs were down 2% year-on-year despite about SEK 100 million of additional quarterly costs from Savoy consolidation. He noted a reversal of about SEK 300 million on net financial expense versus Q1 and said new hedge accounting reduced FX swings hitting the P&L by about SEK 400 million in Q2. He also pointed to a one-off Italian tax charge of almost SEK 100 million and said the company is planning to reduce short-term maturities through bond tenders and manage the RCF alongside that, while keeping investment returns clearly above funding costs.

Analysts pressed management on whether weak Servicing in Greece, Spain, and Germany is temporary or structural, and management said Spain remains a long-term headwind because real-estate servicing is declining as the market recovers, while Greece is more stable but has limited room for new business. Questions also focused on whether the higher efficiency push changes cost targets; management said the 2030 cost range of SEK 10 billion to SEK 11 billion still stands, but the trajectory likely moves toward the lower end if top-line growth stays softer. On debt, management said it is using liquidity from the capital raise and Orange sale for tenders on the 2027 and 2028 bonds, and that further tenders and RCF discussions should continue over the next 6 to 12 months.