Eurowag H1 2025: double-digit net revenue growth, strong cash generation, lower leverage
Eurowag’s half-year update is a good read for long-term holders. Net revenue (revenue minus cost of goods sold, similar to gross profit) rose 15.0% to €162.2 million. Adjusted EBITDA increased 7.7% to €63.9 million, or 11.7% excluding a prior-year commercial settlement. Adjusted cash EBITDA – the company’s key cash metric (Adjusted EBITDA less capitalised R&D plus share-based payment) – climbed 14.1% to €49.2 million with a 30.4% margin.
Cash generation is doing the heavy lifting. Net debt fell to €244.6 million (FY 2024: €275.5 million) and net leverage dropped to 2.0x from 2.6x a year ago. Statutory profit before tax rose to €15.7 million; adjusted profit before tax was €27.8 million. Guidance for FY 2025 is reiterated.
Key numbers investors should know
| Metric | H1 2025 | H1 2024 | Change |
|---|---|---|---|
| Revenue | €1,162.2m | €1,149.7m | +1.1% |
| Net revenue | €162.2m | €141.0m | +15.0% |
| Payment solutions net revenue | €97.9m | €79.8m | +22.7% |
| Mobility solutions net revenue | €64.3m | €61.3m | +4.9% |
| Adjusted EBITDA | €63.9m | €59.4m | +7.7% |
| Adjusted EBITDA margin | 39.4% | 42.1% | (2.7)pp |
| Adjusted cash EBITDA | €49.2m | €43.2m | +14.1% |
| Adjusted PBT | €27.8m | €21.6m | +28.7% |
| Statutory PBT | €15.7m | €4.2m | +273.8% |
| Net debt | €244.6m | €302.4m | -€57.8m YoY |
| Net leverage | 2.0x | 2.6x | Improved |
| Active trucks | 313k | 297k | +5.3% |
| Products per truck | 2.8 | 2.6 | +0.2 |
| Subscription revenue mix | 24.3% | 27.7% | (3.4)pp |
What drove the growth: tolls and energy volumes did the hard yards
Payment solutions led the charge with net revenue up 22.7% to €97.9 million. The standout was toll net revenue, up 50.3%, helped by CO2 charges in Germany and Austria and wider EETS coverage. Energy revenues rose 11.4% on higher volumes. Mobility solutions added 4.9% to €64.3 million, with growth from tax refund and transport management solutions; excluding non-truck revenues (LGVs, buses and passenger cars), mobility grew 7.8%.
Operationally, Eurowag added more trucks and sold more to each one. Active trucks rose to around 313,000 and the average number of products per truck nudged up to 2.8, signalling effective cross-sell.
Margins, costs and cash: the moving parts
Adjusted EBITDA margin slipped to 39.4% from 42.1% due to higher employee expenses as Eurowag invests in talent and adjusts incentive schemes. The adjusted effective tax rate increased to 27.1% (H1 2024: 19.6%). That, plus salary inflation, is a headwind for earnings per share progression.
Credit quality held up: impairment losses of financial assets fell to €7.2 million and the credit loss ratio remained 0.4% of gross energy and toll revenues, despite higher insolvencies in Poland, Romania and Austria. Finance costs reduced on lower interest rates and factoring fees. Working capital was broadly neutral, and interest paid declined to €9.2 million.
Platform progress: Eurowag Office, EETS expansion and digital onboarding
Eurowag is mid-transformation from a fuel card business to a data-centric, AI-driven platform. Capital expenditure was €24.7 million, including €17.9 million of capitalised R&D focused on integrating products into the new Eurowag Office.
- Energy payments now integrated into Eurowag Office, alongside an e-wallet, AI-powered load cost calculator and document processing tools.
- Digital onboarding for energy customers has started with a pilot, aiming to issue digital or physical fuel cards in days rather than weeks and to scale both direct and indirect channels.
- EETS Toll Solution extended to Switzerland and Bulgaria – 13 licensed countries and 24 covered overall. EVA onboard units grew 141% to around 32,300, with active toll domains up 146% to around 62,000.
- Fuel card acceptance points increased to over 15,500 across 24 countries, including around 2,450 mobile acceptance points.
These steps should reduce customer friction, lower acquisition costs and enable cross-selling inside the Office environment over time.
Sustainability and alternative fuels: momentum building
Eurowag’s decarbonisation-as-a-service picked up pace. HVO fuel sales were 3.5x higher than H1 2024, with over 500 acceptance locations and more than half of volumes sold at Czech Truck Parks. LNG and bioLNG volumes were steady, with bioLNG now 15% of total gas volume and roughly 30% of gas locations offering bioLNG.
The company was recognised as a leading sustainability performer in the Czech Republic and announced a partnership with Milence for electric truck charging infrastructure. Useful credibility as ESG scrutiny intensifies across the CRT industry.
Outlook and guidance: low-teen growth, cash discipline, leverage around 2.0x
Despite flat industry conditions, Eurowag reiterates FY 2025 guidance: low-teen net revenue growth, Adjusted EBITDA margins in line with FY 2024 before non-cash LTIP effects (around 40% including them), capitalised R&D below €50 million, and Adjusted cash EBITDA in the middle of the €90–€100 million range. Net leverage is expected to remain around 2.0x after paying the €24.3 million special dividend in July.
Covenants look comfortable: interest cover 4.70x and net leverage 2.00x at 30 June 2025. Access to factoring and reverse factoring facilities continues to support working capital flexibility.
Investment take: why this matters for shareholders
Reasons to be positive
- Core growth engines are working: toll and energy volumes are translating into a 15.0% rise in net revenue and strong cash generation.
- Clear deleveraging trajectory to 2.0x leaves room to invest and, over time, consider further returns of cash subject to priorities.
- Platform execution is tangible – Eurowag Office, digital onboarding and EETS expansion should support scaling and cross-sell.
- Guidance reaffirmed, with Adjusted cash EBITDA the central KPI under the new LTIP.
What to keep an eye on
- Margin pressure: Adjusted EBITDA margin fell 2.7 percentage points; wage inflation and investment could keep a lid on operating leverage near term.
- Revenue mix: subscription revenue share dipped to 24.3%. Management argues toll and energy are predictably recurring, but the mix shift is worth tracking.
- Macro and credit: insolvencies were elevated in some markets, even though loss ratios stayed stable at 0.4%.
- Tax rate: the adjusted effective tax rate stepped up to 27.1%, a drag on EPS growth if sustained.
Net-net, this is a solid set of numbers with improving balance sheet strength and steady delivery against the platform strategy. Execution on Eurowag Office and maintaining margins will be the swing factors for the second half.
Ticker change, dates and where to tune in
- Ticker change: from WPS.L to EWG.L at 8.00am on Monday, 8 September 2025. ISIN and SEDOL unchanged; no action required by shareholders.
- Investor presentation: 4 September 2025 at 9.00am GMT. Details on the company’s investor site: investors.eurowag.com.
- Retail investor session: Monday, 8 September 2025 at 10:00 BST via Investor Meet Company – register at investormeetcompany.com/wag-payment-solutions-plc/register-investor.
