Encore Capital Group raised its full-year 2026 outlook, now expecting portfolio purchases of $1.40-$1.50 billion, collections of $2.80-$2.85 billion, and GAAP EPS of $13.00-$14.00, including a $1 per share impact from refinancing costs. The guidance came as the company's shares have soared 73.8% so far in 2026, against a 16.2% decline for its industry and a 17.2% gain for the S&P 500, outpacing peers Credit Acceptance Corporation, up 19.7%, and PRA Group, up 10.2%. In the first half of 2026, U.S. receivable portfolio purchases reached $688.1 million out of $806.7 million in global purchases, while global collections hit a record $1.46 billion and estimated remaining collections rose 9% year over year to $10.18 billion as of June 30, 2026. In May, the company refinanced approximately $1 billion of debt through two lower-coupon bonds, a move expected to save about $15 million annually, and leverage stood at 2.3x as of June 30, 2026, down from 2.6x a year earlier. The Zacks Consensus Estimate projects earnings per share rising from $10.91 in 2025 to $13.52 in 2026 and $14.64 in 2027, though risks include U.S. concentration, with Midland Credit Management accounting for 85.3% of global portfolio purchasing dollars in the first half, and legal collections expenses that rose 25.8% year over year.
Encore Capital Group IncEncore raised its full-year 2026 guidance (portfolio purchases, collections, EPS of $13.00-$14.00) and refinanced ~$1B of debt at lower coupons, saving about $15M annually.
Credit Acceptance Corporation
PRA Group Inc