How EDU Holdings Achieved Record Growth and Declared Its First Dividend
EDU Holdings has reported a striking 114% revenue increase in the first half of FY25, driven by strong enrolment growth at Ikon and a maiden fully-franked dividend declaration.
- Group revenue doubles to $36.1 million
- EBITDA jumps to $10.9 million with 30% margin
- Ikon enrolments soar 63%, revenue up 163%
- ALG enrolments decline amid sector reforms
- Maiden interim fully-franked dividend declared
Robust Growth in a Challenging Sector
EDU Holdings Limited has delivered a standout performance in the first half of its 2025 financial year, posting record revenue and profitability. The group’s revenue more than doubled to $36.1 million, a 114% increase compared to the previous corresponding period. This surge was largely propelled by the higher education arm, Ikon, which saw enrolments and revenue skyrocket, underscoring EDU’s growing footprint in the tertiary education market.
EBITDA climbed sharply to $10.9 million, reflecting not only increased scale but also improved operational efficiency, with margins expanding by 17 percentage points to 30%. The company’s net profit after tax surged to $6.3 million, a remarkable turnaround from a near break-even position in the prior year. This financial strength has enabled EDU to declare its maiden interim fully-franked dividend, signaling confidence in its sustainable growth trajectory.
Ikon Leads the Charge
Ikon’s contribution was pivotal, with revenue rising 163% to $27.4 million and EBITDA soaring from $2.9 million to $10.3 million. Enrolments increased by 63% for new students and total enrolments more than doubled, reflecting strong demand across both domestic and international markets. The launch of new postgraduate courses and additional accreditations is expected to further diversify Ikon’s offerings and attract a broader student base, positioning it well against intensifying competition.
ALG Faces Sector Headwinds
In contrast, ALG, EDU’s vocational education division, experienced enrolment declines amid ongoing government reforms affecting the sector. Despite a 30% increase in enrolments compared to the prior period, new student enrolments dropped 28%, signaling emerging challenges. Nevertheless, ALG remains a strategic asset, providing pathways for students into Ikon and contributing to the group’s overall student diversity.
Outlook and Strategic Focus
Looking ahead, EDU expects Ikon’s enrolment growth to continue, supported by a strong third trimester intake and new course offerings. However, ALG’s enrolments and revenue are anticipated to decline further due to sector softness. The group forecasts second-half earnings to be broadly consistent with the first half, balancing growth in higher education with challenges in vocational training and increased operating costs.
CEO Adam Davis highlighted the company’s resilience and strategic investments, emphasizing the importance of broadening product offerings and strengthening recruitment efforts both domestically and offshore. The maiden dividend declaration marks a milestone for EDU, reflecting a decade of development and a commitment to delivering shareholder value amid evolving market conditions.
Bottom Line?
EDU’s strong first-half momentum sets a promising stage, but regulatory uncertainties and sector reforms will test its resilience in the months ahead.
Questions in the middle?
- How will EDU navigate ongoing government reforms impacting vocational education?
- What impact will new postgraduate courses have on Ikon’s long-term enrolment growth?
- Can EDU sustain dividend payments amid sector uncertainties and rising operating costs?
