Intrum's Deleveraging Push: Capital Raise and Accelerated Efficiency Mark a Strategic Shift
Q2 2026 report shows progress on balance sheet but acknowledges servicing income headwinds and accelerates operational transformation
INTRUM.ST · Earnings Call · 2026-08-28
A New Chapter in the Deleveraging Story
Intrum's Q2 2026 earnings call was dominated by two intertwined themes: the completion of a capital raise and the acceleration of its operational excellence program. The company reported a pro forma service leverage ratio improvement from 6.2x to 4.3x, with a long-term target of 3.0x, driven by the SEK 2.4 billion portfolio sale and the capital raise. CEO Johan Akerblom framed this as the top priority of the new strategy, noting that the actions have already led to credit rating improvements from S&P and Moody's. The company also launched tender offers on its 2027 and 2028 second-lien bonds to reduce interest expense and manage shorter maturities, as CFO Masih Yazdi explained in response to an analyst question.
The highlight of the quarter was the capital raise and the portfolio sale, even though both of them finalized fully beginning of Q3.
“Our total costs are currently at 11.9% on a rolling 12-month basis, with the target in 2030 of 10% to 11%.” — Johan Akerblom, CEO · 2026-08-28
Cost Efficiency Meets Top-Line Pressure
The operational excellence program, launched in Q1, is showing early results. Costs are down 2% year-on-year, and the company expects to accelerate the program to include more countries. The ambition is a 30%–40% FTE reduction in the cost base over three years, with identified savings already exceeding expectations. However, “the identified savings are actually exceeding the ambition,” — Johan Akerblom, CEO · 2026-08-28 signaling potential for even larger efficiency gains. The challenge remains on the revenue side: Servicing income is facing headwinds from specialized markets like Spain and Greece, causing the company to soften its flat servicing income guidance for 2026. Management is accelerating the efficiency program as a tool to protect margins and improve competitiveness.
“We have a negative minus 3% fully, but the organic growth is minus 2% and the Savoy consolidation is minus 1%.” — Masih Yazdi, CFO · 2026-08-28
Investment Pace and Tender Strategy
On the investing side, Intrum deployed SEK 197 million in Q2 at a 19% IRR, with collection improving sequentially. The company plans to increase investment pace post-capital raise, but expects a lag of a few quarters before it appears in the numbers. The tender offers on the 2027 and 2028 bonds are part of the broader refinancing strategy, using proceeds from the Orange sale to reduce interest expense and manage maturities. As Masih noted, “We are doing a tender on the '27 at a fixed amount, and then we're doing a tender on the '28 for the remaining part.” — Masih Yazdi, CFO · 2026-08-28
Prioritizing Balance Sheet Health
This quarter builds on the prior narrative of deleveraging and cost discipline. In the Q1 2026 call, CFO Masih Yazdi emphasized that cost reduction would be the primary driver of margin improvement initially, with revenue growth planned later. “it will be initially a lower cost. That's been the main driver between behind the improvements of the margin, and that will be the case at least in 2026.” — Masih Yazdi, Chief Financial Officer · 2026-01-29 The acceleration of the operational excellence program is a logical extension of that philosophy. The company also reiterated its long-term target of a 30-35% servicing EBIT margin, a goal that now relies even more on cost efficiency given the softer top-line outlook.
“We want to continue to improve our efficiency... We have been too customized in the past in our processes.” — Patrik Brattelius, Analyst · 2025-10-30
Conclusion
Intrum's Q2 report marks a pivotal moment: the balance sheet is being repaired, but the revenue side remains under pressure. The company is aggressively pursuing cost cuts to bridge the gap, while using financial flexibility to manage debt and invest selectively. The market will be watching whether the accelerated efficiency program can offset the specialized-market declines and deliver on the 2026 servicing income expectations, which management itself acknowledges are "slightly behind plan."