GRENKE Sets 2026 New Leasing Business at €3.4 Billion
Key Facts
On November 12, GRENKE set its forecast for new leasing business in fiscal 2026 at about €3.4 billion, the lower end of the previously announced range of €3.4 billion to €3.6 billion. The company said the specific forecast reflects the continued challenging environment and its active risk management. At the same time, it kept its fiscal-year group profit forecast at €74 million to €86 million. The revision puts new business at the lower end of the previous guidance, while the target profit range is unchanged. The company linked its decision to operating conditions and risk management, not to a change in its profit forecast.
Results for the first nine months of 2026 showed limited growth in new leasing business, which rose 1.7% to €2,443.8 million from €2,403.3 million in the same period of 2025. Over the same period, group profit increased 14.6% to €55.7 million from €48.6 million a year earlier. Operating income rose 9.4% to €533.0 million, compared with €487.2 million in the first nine months of 2025. Costs were almost unchanged at €269.8 million, compared with €269.9 million. These indicators show a contrast between modest growth in leasing business and improved profit and revenue, with costs largely stable.
The second contribution margin fell to 15.7% in the first nine months of 2026 from 17.1% in the same period of 2025. GRENKE attributed this mainly to the usual lag in the pass-through of interest-rate movements to leasing terms. It said higher capital-market rates had a temporary offsetting effect, particularly in the second and third quarters of 2026. On asset quality, the loss rate was 1.9% for the nine months, up from 1.8% a year earlier. It was, however, below the 2.0% recorded in the first half of 2026, the company said.
Leasing business varied across the markets highlighted by the company. In Germany, new business grew 8.2% in the first nine months of 2026 to €517.1 million, compared with €477.8 million in the same period of 2025. In Northern and Eastern Europe, it fell to €403.4 million from €445.7 million. GRENKE attributed the decline to deliberate management measures in Denmark and Sweden, as well as investment decisions being held back by the geopolitical situation. The company said hesitant investment decisions and the continued challenging environment were among the factors it considered when setting its leasing business forecast.
Chief Executive Sebastian Hirsch said the nine-month results demonstrated the potential of the business model and progress in improving operating efficiency. He added that the company’s goals included returning the loss rate to normal levels and sustainably strengthening margins. On funding, GRENKE issued a new €300 million bond in the third quarter of 2026 and placed a Swiss franc bond with a nominal value of 100 million francs to finance new local leasing business. Leasing receivables rose to €7.8 billion at the end of the third quarter, from €7.3 billion on December 31, 2025. Lessee payments also reached €2.3 billion in the first nine months, compared with €2.1 billion a year earlier.
The equity ratio was 15.0% on September 30, 2026, compared with 15.6% on December 31, 2025. The company said the ratio was within its target range of around 15%. For annual comparison, GRENKE recorded new leasing business of €3,294.6 million in 2025, up 7.8% from 2024 and within annual guidance of €3.2 billion to €3.4 billion. The company said its focus in the coming years would be profitability, targeting a post-tax return on equity of 10% by 2030. The target places profitability and margins among its stated priorities, alongside efforts to sustainably improve the loss rate.