KRUK Spólka Akcyjna

KRUK reported 2025 EBITDA and cash EBITDA growth of 12% year over year, with assets up 12% and portfolio value ending at PLN 11.6 billion, up 11%. Net profit growth was smaller than operating growth because of tax changes, a PLN 41 million RON depreciation hit, and about PLN 30 million of digital transformation OpEx. Investments were PLN 2.2 billion versus a PLN 2.5 billion target, but management said the 2025 investment pool generated roughly 21% gross IRR and about 3x money multiple. Net debt to cash EBITDA was 2.6x, ROE was 20%, and the lending business generated PLN 170 million EBITDA. For 2026, management said portfolio purchases should be more than in 2025, with a range of PLN 2.4 billion to PLN 2.7 billion, and Spain investment could resume in the second half if recoveries and market conditions improve. Management also said France investment should stay roughly similar to 2025 levels, while Poland investment is expected to increase versus last year.

Michal Zasepa framed 2025 as a strong but not fully budget-achieving year, emphasizing that the core business still delivered healthy double-digit operating growth despite external and internal cost headwinds. He highlighted the strength of recoveries across the back book, the company’s disciplined capital deployment across markets, and the strategic importance of the digital transformation program and planned group reorganization. His tone was confident and forward-looking, repeatedly stressing that KRUK remains well capitalized and ready to keep expanding investments while protecting returns.

He pointed to the main financial drags on net profit: a PLN 41 million FX headwind from RON depreciation, roughly PLN 30 million of digital transformation OpEx, and higher finance costs from more debt, partly offset by lower rates and about PLN 60 million of positive hedging impact. He said operating costs rose on salary growth and some legal-cost inflation, while the company still delivered 12% growth in EBITDA and cash EBITDA and maintained leverage at 2.6x net debt to cash EBITDA. On capital allocation, he said the company remains well funded through banks and bond investors, and in 2026 it expects to use banking credit and Polish bond issues to finance growth. He also noted that the strategy remains supportive of the 2025-2029 plan, including the PLN 15 billion investment benchmark and the ongoing digital investment program, of which about PLN 70 million has already been spent.

In Q&A, management was asked about the tax impact of the planned reorganization. Zasepa said the restructuring is mainly for business and risk-management reasons, and a successful tax ruling could mean securitization vehicles would not face Pillar Two GloBE taxation on top of the current 19% tax. He also explained that KRUK will not be subject to global minimum tax in 2026 or 2027 because 2025 revenue did not exceed EUR 750 million. On guidance, he said 2026 investment should be above 2025, likely PLN 2.4 billion to PLN 2.7 billion, with Spain likely to reopen in the second half depending on recoveries and legal-process improvement. He added that future incentive plans should return to EPS once the tax environment is stable.