Intrum AB, a leading provider of credit management services, has reported a stronger-than-expected first quarter of 2025, with its CEO Andrés Rubio describing the period as “strong.” The company’s results reflect a significant improvement in its servicing margin and a robust performance in its own portfolio collections.

The company’s adjusted earnings before interest and taxes (EBIT) margin in the servicing segment increased to 689 million SEK, up from 163 million SEK in the same period last year, despite a 2% decrease in external revenues within the servicing business due to negative organic growth in Southern Europe.

Intrum’s overall adjusted operating profit for the quarter came in higher than expected, reaching 1.032 billion SEK, compared to an estimated 845 million SEK. The net profit for the quarter was 101 million SEK, surpassing expectations of a net loss of 53.3 million SEK. Rubio expressed satisfaction with the results, noting that the company is nearing the completion of its recapitalization transaction.

The company’s stock price has seen a significant rise following the release of these results, with Intrum shares climbing by more than 20% on the Stockholm Stock Exchange. Despite this positive performance, the company’s debt level remains unchanged. However, Rubio remains optimistic about the future, highlighting the rapid digital transformation within the banking and finance sector as a key driver for Intrum’s growth.

Intrum’s performance in the first quarter of 2025 reflects a broader trend of stabilizing and improving financial health within the company. The strong results in servicing and collection activities within the investing segment have exceeded expectations, contributing to a more positive outlook for the remainder of the year.

The company’s market capitalization stands at 3.81 billion SEK, with the share price closing at 30.78 SEK on May 4, 2025. This is a notable improvement from its 52-week low of 20.55 SEK on April 6, 2025, and a significant drop from its 52-week high of 54.6 SEK on July 21, 2024.

Intrum’s performance in the first quarter of 2025 signals a promising start to the year, with the company’s strategic initiatives and operational improvements beginning to bear fruit. The company’s focus on enhancing its servicing margin and optimizing its portfolio collections has clearly paid off, setting a positive tone for the rest of the year.