Story
Ayvens Q2 Profit Misses Estimates on Used Car Division Losses
Summary
The vehicle leasing giant reported second-quarter pretax profit 4% below analyst expectations, as a significant loss in its used car sales unit offset strong cost controls and stable lease margins.
Ayvens SA (EPA:AYVN) reported second-quarter pretax profit that fell 4% short of analyst expectations, primarily due to mounting losses in its used car sales division. The shortfall overshadowed better-than-expected cost management and solid performance in its core leasing operations.
Used Car Weakness Hits Bottom Line
The company's used car sales unit was the main drag on performance, recording a €45 million loss during the period. The division's result swung to a loss of €8 million in the second quarter, translating to a per-unit loss of €62.
A new prospective depreciation charge of €41 million was a key driver of the miss. Excluding depreciation adjustments, the per-unit result was €326, which still fell below analyst consensus of €393. Notably, Ayvens did not reference its previous 2026 guidance for used car sales, which had targeted a per-unit result of €200 to €600, excluding depreciation adjustments.
Core Operations Show Resilience
Despite the used car headwinds, other parts of the business demonstrated strength, partially offsetting the weakness. Key positive developments include:
Ad- Lease and service margins remained broadly in line with expectations.
- Underlying margins stood at 609 basis points, beating the consensus estimate of 580 basis points.
- Operating expenses came in €6 million better than forecast.
- Cost of risk was €11 million lower than anticipated, totaling €16 million, or 12 basis points.
Ayvens also reported realizing €112 million in synergies in the quarter, an increase from €86 million in the same period of 2025.
Capital Position and Shareholder Returns
Ayvens announced a new €700 million capital distribution to shareholders. This consists of a €450 million share buyback program and a special dividend of €0.32 per share, payable on September 10, 2026.
The company's Common Equity Tier 1 (CET1) ratio, a key measure of financial strength, stood at 12.6%. This marked a 1.3 percentage point decline from the previous quarter, reflecting the impact of a recent €450 million share buyback and a €250 million special dividend.
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