Kruk SA (FRA:83I) Full Year 2025 Earnings Call Highlights: Record EBITDA Growth Amid Digital ...

This article first appeared on GuruFocus .

• EBITDA Growth:12% increase in EBITDA and cash EBITDA.

• Asset Growth:12% increase in assets.

• Net Profit:Growth was smaller due to increased taxation.

• Operating Expenses:PLN30 million spent on digital transformation.

• Portfolio Worth:PLN11.6 billion, an 11% growth.

• Net Debt to Cash EBITDA:2.6 times.

• Investments:PLN2.2 billion with a return assumption of PLN2.3 billion.

• Return on Equity:20% as expected.

• Market Performance:Excellent results in Poland and Romania; good in Italy; weak in Spain and France.

• EBITDA from Italy:Almost PLN300 million.

• EBITDA from Spain:PLN130 million.

• EBITDA from Lending Business:PLN170 million.

• Funding Access:Increased credit value and positive bond market conditions.

• Gross IRR:Approximately 21% for 2025.

• Recoveries:PLN225 million above 2025 accounting forecast.

• Digital Transformation Investment:PLN70 million spent, 40% OpEx, 60% CapEx.

• Warning! GuruFocus has detected 8 Warning Signs with FRA:83I.

• Is FRA:83I fairly valued? Test your thesis with our free DCF calculator.

Release Date: February 27, 2026

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

Positive Points

• Kruk SA ( FRA:83I ) achieved a record year in 2025 with a 12% growth in operating profit measures such as EBITDA and cash EBITDA.

• The company maintained a healthy indebtedness level at 2.6 times net debt to cash EBITDA with record high recoveries.

• Kruk SA ( FRA:83I ) reported a 20% return on equity, meeting expectations despite lower net profit than budgeted.

• The company successfully increased its credit lines and saw a favorable market for bond issues, ensuring good access to funding.

• Kruk SA ( FRA:83I ) is advancing in its digital transformation strategy, with significant investments expected to yield benefits post-2029.

Negative Points

• Net profit growth was smaller due to increased taxation and additional reserve provisions for deferred tax assets.

• The depreciation of the Romanian leu against the euro and Polish zloty negatively impacted results by approximately PLN41 million.

• Operating costs increased due to salary hikes and digital transformation expenses, totaling around PLN30 million.

• The company faced higher competition in some markets, leading to lower-than-expected investments and returns.

• Results in Spain were below expectations due to legal system uncertainties, affecting the performance of Spanish portfolios.

Q & A Highlights

Q: How will the new company structure affect taxation? A: Michal Zasepa, CFO, explained that the reorganization is primarily for business reasons to better manage investment risks and regulatory oversight. If successful, the tax situation should remain unchanged, with a 19% tax rate on profits. Additionally, the securitization companies may not be subject to Pillar Two GloBE taxation, avoiding extra taxes beyond the current rate.