W.A.G payment solutions (LON:WPS) used its full-year 2025 results call to highlight a “defining year” marked by the launch of Eurowag Office, ongoing customer migration to the new platform, and what management described as strong financial performance alongside continued investment in technology and data capabilities.
Eurowag Office rollout and migration progress
CEO Martin Vohánka described Eurowag Office as the company’s “most ambitious strategic initiative to date,” positioning it as a fully integrated digital platform aimed at small and medium-sized fleet operators. Management said the platform is designed to consolidate end-to-end workflows—spanning fuel, toll, tax refunds, fleet management, work time management, navigation, and financial services—into a single ecosystem.
Management said the platform is live and scaling, with most Eurowag products already available. The company noted that the core services representing the majority of current net revenues are integrated. On toll, Eurowag said most solutions are already in Eurowag Office, including EETS, which management said represents about 70% of total transacted toll volumes. Remaining toll services are expected to migrate during the second quarter of 2026, while transport management-related services are scheduled for integration by the end of 2026.
Customer migration was presented as progressing well. The company reported that 35% of customers are actively using Eurowag Office, and management expects the majority of customers to be migrated by the end of 2026. Vohánka said the migration process is being managed through an approach that accounts for different legacy systems and product combinations, with a “scientific” staged method in some cases to reduce friction, including the ability for customers to revert temporarily to older environments while gaps are closed.
Operating metrics and customer engagement
Alongside the platform rollout, Eurowag reported growth in key operating metrics. The number of active trucks on the platform rose 6% year-on-year to 321,500. Net promoter score increased by 3.8 points to 43.8, which management emphasized as encouraging given that 2025 involved integration work and the first wave of migrations.
The company also reported increased product penetration, with the average number of products per truck rising to 2.8. Vohánka said Eurowag expects deeper cross-sell opportunities as Eurowag Office becomes embedded in customers’ daily workflows. Subscription revenue increased to EUR 79.4 million, representing 24% of total net revenues, as the company continues shifting toward more recurring revenues.
FY 2025 financial performance and investment
CFO Oskar emphasized that results were aligned with guidance. Net revenues increased 12.9% to EUR 330.1 million, supported by what he described as strong growth in payment solutions, led by a 52.3% increase in toll. Adjusted EBITDA rose 8.5% to EUR 132.1 million, and adjusted cash EBITDA increased 10.5% to EUR 98.0 million, with margins of 40% and 29.7%, respectively. Adjusted profit before tax increased 11% to EUR 51.4 million, while adjusted basic EPS rose 3.9% to EUR 0.048 per share.
Eurowag said it invested EUR 41.4 million in capitalized R&D in 2025 to strengthen Eurowag Office and expand its technology and data capabilities. Total capital expenditure rose EUR 10.5 million to EUR 56.5 million, driven by capitalized R&D, EUR 9.8 million in onboard units (OBUs), and EUR 5.3 million in infrastructure related mainly to truck parks and IT hardware. The company said capitalized expenditure represented 17.1% of net revenues, with capitalized R&D at 12.5%.
On revenue mix, management described the business as more diversified than in 2021. Oskar said toll revenues grew from EUR 21 million to EUR 76 million and now represent 23% of the revenue mix, while mobility rose from EUR 40 million to nearly EUR 130 million, representing 39% of revenues. Payment solutions (energy and toll) represent 61% of total net revenues, and net revenues from payment solutions increased 20% in 2025 to over EUR 200 million. Mobility solutions increased 5.5% excluding non-CRT fleet management solutions, with growth driven by transport management, financial services, and core CRT fleet management.
Management also emphasized the recurring nature of the model. Oskar said toll and subscription-related revenues together account for 47% of total revenue, describing this as supporting visibility and stability.
Cash flow, leverage, and shareholder returns
Eurowag highlighted cash generation and balance sheet improvement. Net leverage fell to 1.9x from 2.3x in FY 2024, supported by EUR 178 million of free cash and a positive working capital inflow of EUR 52 million. Management attributed the working capital movement to increased year-end utilization of the recourse factoring program and improved collection of tax refund receivables.
The company paid a EUR 24.3 million special dividend (3.0 pence) in July 2025. The board is recommending a second special dividend of 1.5 pence per share, or approximately GBP 12 million, subject to approval at the AGM in May. Oskar said the board considered buybacks and an ordinary dividend but concluded a special dividend best balanced shareholder returns with liquidity, flexibility, and M&A optionality.
2026 guidance, AI initiatives, and outlook
For FY 2026, management said the year will be a “pivotal migration year” with priorities centered on seamless customer adoption of Eurowag Office. The company guided for low double-digit net revenue growth and an adjusted EBITDA margin of around 40%. Eurowag said it is now focusing on adjusted cash EBITDA as a key metric and expects it to be in the range of EUR 105 million to EUR 115 million. Capitalized R&D is expected to remain below EUR 50 million, and the company expects to keep net leverage below 2x and within its target range of 1.5x to 2.5x.
Vohánka also discussed the company’s use of artificial intelligence, saying Eurowag has more than 20 AI and automation initiatives in production. Examples cited included an AI-powered cost calculator, fraud prevention tied to transaction and vehicle data, document digitization to reduce manual processing in onboarding and tax refunds, AI-powered agents for sales and customer care, and dynamic pricing optimization.
In Q&A, management reiterated that periods of fuel price spikes can increase customers’ working capital strain, particularly in the initial months before higher fuel costs are reflected in transport pricing and cash collection. Vohánka said Eurowag has historically benefited in such periods as customers seek reliable partners with fuel supply and credit capacity, and he argued that support provided during difficult periods can strengthen long-term loyalty. Oskar said the company aims to remain broadly working-capital neutral over time, while noting that rapid growth—particularly in toll—adds complexity to receivables and payables management.
On monetization, Vohánka said 2026 is primarily focused on migration rather than introducing new pricing structures, with subscription bundles and broader monetization expected to accelerate after migrations, particularly in 2027. He said the company had completed quantitative research suggesting customers are willing to adopt bundled subscriptions, with initial launches planned in selected markets toward the back end of 2026.
About W.A.G payment solutions (LON:WPS)
Eurowag was founded in 1995 and is a leading technology company and an important partner to Europe’s commercial road transport industry, with a purpose to make it clean, fair and efficient.
Eurowag enables trucking companies to successfully transition to a low carbon, digital future by harnessing all mission critical data, insights and payment and financing transactions into a single ecosystem and connects their operations seamless before a journey, on the road and postdelivery.
Please visit our website https://investors.eurowag.com for more information.
