ZIGUP (ZIG) H1 2026 earnings summary

Executive summary

• First half performance exceeded expectations, with underlying revenue up 4.5% to £809.9m and fleet exceeding 135,000 vehicles, driven by standout growth in Spain and strong momentum in UK & I.

• Strategic simplification and evolution of the UK & I operating model, reorganising into Northgate Mobility and FMG, targets £20m annualised savings by FY2028.

• Spain delivered double-digit rental revenue growth and record fleet volumes, supported by focused growth CapEx and robust market conditions.

• Interim dividend maintained at 8.8p per share, in line with policy.

• Confident in reaching the top end of market expectations for full-year profit, supported by operational improvements and strong cash generation.

Financial highlights

• Underlying EBIT increased 1.4% to £100.4m; underlying EBITDA up 7.6% to £246.0m; steady state cash flow more than doubled to £48.6m.

• Underlying revenue up 4.5% year-over-year; statutory EBIT rose 14.4% to £83.8m.

• Net debt increased to £939m; leverage at 1.9x, within 1-2x target range.

• UK & I rental revenue up 6.5% to £208.3m, with rental margin at 16.9%.

• Spain rental revenue surged 16.3% to £170.7m, with average VoH up 11.0% and rental margin steady at 19.3%.

Outlook and guidance

• Full-year underlying profit before tax expected at or above the top end of the £150m-£155m consensus range.

• UK & I rental margin expected within 15-16% target; Claims & Services EBIT margin to approach 5% in H2.

• No impact anticipated from UK budget news on current or medium-term guidance.

• Annualised savings of £20m targeted by FY2028 from operating model changes, with about half realised in FY27.