Grupo Elektra Pays Billions to End Tax War, Posts Record Loss

MEXICO CITY, Mexico – February 26, 2026 – Grupo Elektra, the Latin American retail and financial services giant, has finally closed the book on a contentious, two-decade-long tax dispute with the Mexican government. The resolution, however, came at a staggering cost, driving the company to a record-breaking quarterly net loss of Ps. 19.86 billion and wiping out its annual profits.

In a press release accompanying its fourth-quarter and full-year 2025 results, the company confirmed the conclusion of all tax litigations. While stating it disagreed with the amount required, Grupo Elektra said the decision was made to “move forward and to focus its efforts on continuing to create prosperity and value.” The move ends years of legal battles and removes a significant cloud of uncertainty that has hung over the company, part of the broader Grupo Salinas conglomerate owned by entrepreneur Ricardo B. Salinas.

The Price of Peace

The financial cost of this resolution was starkly illustrated in the company's fourth-quarter earnings. The results were dominated by a single line item: an income tax provision of Ps. 23.26 billion (approximately $1.3 billion USD). This provision, made specifically to cover the fiscal credits claimed by tax authorities, single-handedly pushed Grupo Elektra deep into the red.

The resulting net loss of Ps. 19.86 billion for the quarter ending December 31, 2025, is a 70% wider loss than the Ps. 11.66 billion reported in the same period of 2024 and stands as the largest in its publicly-traded history, according to available financial data.

However, beneath this headline-grabbing loss, the company's operational engine showed continued resilience. Consolidated revenue for the fourth quarter grew a modest 2% to Ps. 58.86 billion, propelled by a strong 9% increase in financial income from its banking arm, Banco Azteca. This growth in its core lending business helped offset an 8% decline in commercial sales. EBITDA, a key measure of operational profitability, also rose by 5% to Ps. 7.82 billion for the quarter.

For the full fiscal year of 2025, the pattern was similar. Annual revenue climbed 7% to Ps. 215.36 billion, but the tax settlement resulted in a full-year net loss of Ps. 13.02 billion, a 17% increase from the prior year's loss.

A Two-Decade Battle Concludes

The settlement puts an end to a legal saga that has been a defining feature of the company's relationship with the Mexican government for nearly two decades. The disputes primarily centered on fiscal credits and tax treatments from fiscal years 2008 to 2018, with some issues dating back even further. The Mexican tax authority (SAT) had pursued these claims aggressively through the courts.

The turning point came in late 2025 when Mexico's Supreme Court handed down several rulings against Grupo Salinas companies, upholding billions of pesos in tax liabilities. These legal defeats increased pressure on the conglomerate to reach a comprehensive settlement. The final agreement for the parent, Grupo Salinas, reportedly totals around MXN 32 billion, to be paid through an initial lump sum followed by monthly installments.

By taking the massive provision, Grupo Elektra effectively absorbs its share of the blow in a single accounting period. The company was clear in its statement: “With this provision, the company fully covers the tax credits claimed by the authority and settles all of Grupo Elektra's fiscal litigation with the Mexican government.”

Market Reacts to Cleared Skies

For investors and market analysts, the resolution removes a major overhang that has suppressed the company's valuation and complicated its risk profile. The protracted legal battle had tangible consequences, contributing to S&P Global Ratings downgrading the company's credit rating to 'B+' in November 2025, citing risk management concerns and the potential impact of the “likely substantial tax claim amount.”

The uncertainty also led to Grupo Elektra's stock being delisted from key Mexican stock indexes in September 2024 after a prolonged trading suspension. While the immediate financial results are jarring, the long-term benefit of legal and financial clarity is widely seen as a net positive.

Removing the contingent liability from its balance sheet allows for more predictable financial modeling and could pave the way for a re-evaluation by credit rating agencies. The move demonstrates a commitment to resolving outstanding governance issues, which may help rebuild investor confidence over time, despite the significant short-term pain reflected in the 2025 financial statements.

Refocusing on Growth and Digital Strategy

With the litigation now in the rearview mirror, Grupo Elektra can pivot its full attention and resources back to its strategic priorities. This renewed focus comes as its core financial services arm demonstrates robust health. The consolidated gross loan portfolio, which includes Banco Azteca and its U.S. non-bank loan provider Purpose Financial, grew 11% year-over-year to Ps. 216.7 billion.

Banco Azteca, a key profit driver, saw its own gross loan portfolio expand by 11% to Ps. 208.5 billion, signaling continued strong demand for credit among its target demographic of middle and lower-income families. The bank maintains a healthy capitalization index of 15.5%, well above regulatory requirements.

At the same time, the company is adapting its physical footprint in an increasingly digital world. The total number of points of contact decreased slightly from 6,150 to 6,110, a change the company attributes to “growth in the digital strategy to optimally serve the company's customers.” This pivot towards a more streamlined, digitally integrated model, blending its retail stores with its expanding financial services, appears to be the clear path forward as the company finally moves out from under the shadow of its long and costly tax war.