Eurowag keeps full-year outlook despite solid H1 results, shares slip

Published 04/09/2025, 08:24

Investing.com -- WAG Payment Solutions PLC (LON:WPS), or Eurowag, affirmed its full-year outlook after reporting first-half (H1) revenue above expectations. 

The company posted a 15% year-on-year increase in first-half net revenue to €162 million, coming in 4% above consensus. Payment Solutions revenue rose 23% to €98 million, while Mobility Solutions increased 4.9% to €64.3 million, or 8% excluding non-truck revenue in fleet management services.

Eurowag shares slipped 2% in early London trading. 

Adjusted EBITDA rose 7.7% to €63.9 million, or 11.7% when excluding a prior-year commercial settlement.

Adjusted cash EBITDA increased 14.1% to €49.2 million, representing a margin of 30.4%, ahead of consensus expectations of €46 million and 30%.

Adjusted profit before tax rose to €27.8 million from €21.6 million, driving a 16.3% increase in adjusted EPS to 2.92 cents per share.

The company reaffirmed its 2025 guidance, with net revenues expected to rise 10–13% to between €322 million and €331 million, in line with consensus of €323 million. According to Jefferies analysts, the outlook implies second-half revenue growth of 8%.

Adjusted cash EBITDA is expected in the €90–100 million range, with margins flat year-on-year and R&D likely to remain below its €50 million cap.

"Despite strong results, guidance was only confirmed as visibility remains low, but with toll possibly continuing its run, we could see the high-end as achievable," Jefferies analysts said in a note.

The team expected the stock to be up on the results. 

“Eurowag has delivered an impressive performance for the first half with double-digit net revenue growth and strong cash generation, despite the sustained macroeconomic challenges," said Founder and Chief Executive Martin Vohánka.

He added that progress continues on the phased rollout of Eurowag Office as the company transforms into a “data-centric and AI driven company,” while cautioning that macro headwinds are expected to persist in the second half.

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