Quadient SA (NPACF) (Q2 2026) Earnings Call Highlights: Digital Momentum and Locker Divestment ...

Negative Points

• Quadient SA ( NPACF ) experienced a 2% organic revenue decline in H1 2026, with total revenue of EUR448 million, primarily due to a 5.7% decline in mail revenue.

• The company's EBITDA margin decreased by 0.8 points to 21.5% in H1 2026, impacted by mail erosion and unfavorable mix effects.

• Current EBIT declined by 5.9% organically to EUR57 million in H1 2026, largely due to a EUR6 million decline in mail EBITDA.

• Quadient SA ( NPACF ) faces a slow ramp-up in e-invoicing volumes, processing only 700,000 invoices in the last three weeks, with expectations of continued slow adoption until more platforms become fully operational.

• The strategic review of the locker business introduces uncertainty, as the sale process for the remaining locker assets (US and Japan) is ongoing, with no specific timeline or valuation range provided, and potential complexity due to multiple entities across several countries.

Q & A Highlights

Q: What is the expected timeline and valuation range for the remaining locker assets (US and Japan)? Do you expect the transaction to be completed by the end of FY26? Would you pursue a single buyer for the entire business or separate transactions? A: CEO Geoffrey Godet stated that the priority is to do the process right and maximize value. He noted the US market represents roughly 30-40% market share and is the primary asset, accounting for 85-90% of the remaining locker revenue, while Japan has about 7,000 lockers with 60-70% market share. He described both as "premium assets" compared to the less mature UK business. He declined to commit to a specific timeline, noting the remaining process is more complex due to multiple entities across several countries, but said the company is focused on moving efficiently.

Q: How was the conflict of interest managed in the UK transaction given that IDS Holdco is owned by EP Group (Mr. Kretinsky), who is also a major Quadient shareholder through VESA? Were there competing third-party offers, and did the Board obtain an independent fairness opinion? A: CEO Geoffrey Godet emphasized it was a very competitive process with multiple non-binding offers received at various stages. Independent advisors (Societe Generale and legal advisors) supported the process to ensure fair valuation. He stressed that Mr. Kretinsky and his entities did not participate in the Board's review or decision-making, and the independent Board approved the transaction unanimously based on the merits of the competitive offer.

Q: Will the EUR120 million of locker-related CapEx expected to be freed up over the next five years be reallocated to accelerate digital investment, and over what time frame does management expect to eliminate the stranded costs? A: CEO Geoffrey Godet explained that capital allocation priorities include production, shareholder returns (dividend, buybacks), and business investment. He noted the 2030 plan is organic and does not require inorganic investment. He indicated that after completing the UK sale and the rest of the locker divestment, and following the full-year financial communication, it would be a good time to reset expectations and share the Board's decisions on capital allocation.

Q: How does Quadient intend to use the disposal proceeds debt reduction, enhanced share buyback, special dividend, or reinvestment in digital? A: CEO Geoffrey Godet stated the EUR65 million UK proceeds are expected before year-end and will enable deleveraging from 1.5x to 1.2x. He noted the company has been increasing its dividend steadily and that exceptional proceeds could open options including a special dividend or share buyback, especially given the low share price. He said the Board reviews capital allocation regularly and will set a new course at the beginning of next year.

Q: Is it safe to assume that the US and Japan locker businesses will be sold to two different buyers? A: CEO Geoffrey Godet said it is not safe to assume that. He explained the business operates on a common platform with shared R&D, and Quadient retained the IP even in the UK sale (selling only distribution). He noted there is a legitimate case for a buyer interested in the entire asset, but the company remains open to various interests if it creates more value.

Q: What is the return on investment of the lockers business? A: CFO Laurent Du Passage stated that Quadient has consistently indicated expected internal rates of return significantly above WACC across all regions. He noted the UK divestment achieved those return goals, and the Japanese and North American operations are expected to produce strong payback, with those regions already significantly positive in terms of EBITDA.

Q: Could you remind us what the revenue and EBITDA from the UK Open Network was, and what multiples do the EUR65 million represent against these? A: CFO Laurent Du Passage stated that UK Open Network revenue is expected to be more than EUR10 million this year, with EBITDA expected to be breakeven this year.

Q: Could you give us an overview of the criteria on which the UK transaction was done? A: CFO Laurent Du Passage explained the process was very open with multiple bids received. Criteria included price, speed of execution, and quality of the partnership particularly important since Quadient retained the IP and will continue supplying software, support, and services to the buyer on an arm's-length basis.

Q: Could you give us some more color on the involvement of VESA (EP Group) in the lockers, mail, and digital business? A: CEO Geoffrey Godet stated "None whatsoever." He noted VESA is a shareholder but has no board representation and was not part of the deliberation, evaluation, or decision-making regarding the UK offers. He declined to speak on behalf of any shareholders regarding their intentions.

Q: What are your expectations regarding the cash proceeds from lockers, given leverage is already under control and 2030 goals are organic? A: CEO Geoffrey Godet acknowledged the logic and noted the Board supports focusing on shareholder returns this year after years of significant transformation investment. He mentioned dividend increases, potential special dividends, and share buybacks as options, especially given the low share price. He indicated the Board will review and set a new course for the beginning of next year.

Q: Is it your ambition to sell the rest of the lockers business at a price of more than $20,000 per locker, consistent with a premium versus the UK deal? A: CFO Laurent Du Passage cautioned against valuing the business solely on locker count, noting it depends on usage, market, maturity, remaining asset value, future growth, and expected margin. He highlighted that Japan and UK are mostly open network while America is mostly sold lockers, and that Quadient retains valuable IP in France that adds an additional margin layer to be assessed in future cash flows.

Q: How much was the tariff refund in H1? A: CFO Laurent Du Passage stated the company received about EUR3 million back on the tariff refund, noting a portion was tied to lockers and classified accordingly.

Q: Is there a share buyback program ongoing at the moment? A: CFO Laurent Du Passage confirmed the company is not currently buying back shares but noted it is part of future capital allocation considerations once the locker divestment proceeds are received.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .