Arval net income plummets 49% in H1 2025 to €351.4m

Core Insights - Arval reported a net income of €351.4 million in H1 2025, marking a 49% decline from €688.8 million in H1 2024, primarily due to an unfavorable base effect from high vehicle sales in the previous year [1] - The company's gross revenues increased by 10.1% to €10.5 billion, but gross operating income decreased by 24.2% to €1.09 billion [2] - The number of electrified vehicles in Arval's fleet rose by 23.7%, with fully electric vehicles increasing by 42.6% [4] Financial Performance - The decline in net income was attributed to a high level of vehicle sales in H1 2024, although financial and service margins improved due to an increase in outstanding contracts [1] - Excluding car sales, gross operating income reflected a 16.6% increase due to margins on lease contracts [2] - Capital gains from vehicle sales and disposals were €78.1 million in H1 2025, a decrease after three years of exceptional levels [2] Future Outlook - The base effect from vehicle sales is expected to lessen in H2 2025, with projected capital gains from vehicle sales and disposals reaching €253.4 million in H2 2024 [3] - Arval has extended its Arval Beyond plan until 2026, targeting a fleet of two million vehicles, including 400,000 fully electric vehicles [4] - The company renewed its partnership with CaixaBank to finance 200,000 new vehicles over the next five years in Spain [5]