Australian debt buyer Credit Corp forecasts higher profit in FY26, shares soar

Aug 5 (Reuters) - Australian debt buyer Credit Corp Group CCP.AX on Tuesday reported an 86% rise in full-year earnings and forecast higher profit for fiscal 2026, citing stronger U.S. debt collections, which sent its shares soaring as much as 21%.

The Sydney-based firm expects net profit after tax of A$100 million to A$110 million ($64.57 million-$71.03 million) for financial year 2026, up from A$94.1 million reported in the previous fiscal.

Credit Corp's shares jumped to a near nine-month high, closing 16.2% higher at A$17.73. They logged their biggest one-day gain since late December 2020.

The stock was the top gainer in the ASX 200 benchmark index .AXJO, which hovered near all-time highs.

Credit Corp's net profit after tax rose to A$94.1 million for fiscal year 2025, boosted by strong performance in its consumer lending segment and improved debt collections in the United States.

The company also said it has secured a record A$164 million contracted investment pipeline for fiscal 2026 in the United States, and sees "opportunities to secure further purchases over the course of FY2026".

The firm's fiscal year 2025 revenue stood at A$545.6 million, up from A$476.3 million last year, helped by growth in its Australia/New Zealand and U.S. markets - its biggest and second-biggest, respectively.

It declared a final dividend of 36 Australian cents for fiscal year 2025.

($1 = 1.5487 Australian dollars)