Enero Group’s FY25 EBITDA Climbs to $14.1M with 13% Q1 Growth
Enero Group reports improved profitability in FY25 despite revenue decline, driven by divestment and AI innovation, with FY26 Q1 EBITDA up 13%.
- FY25 EBITDA rises to $14.1 million on $138.7 million revenue
- OBMedia divested to sharpen focus on core agencies
- AI integration enhances agency creativity and efficiency
- FY26 Q1 EBITDA grows 13% led by Australian agencies
- New Hotwire Global CEO appointed, starting January 2026
Transformation and Focus
Enero Group Limited (ASX, EGG) has marked FY25 as a year of significant transformation, navigating a shifting marketing landscape with strategic divestments and leadership changes. The sale of OBMedia at year-end allowed Enero to concentrate on its core agencies; BMF, Hotwire, and Orchard; where it sees the greatest potential for differentiation and value creation.
Despite a reduction in revenue to $138.7 million, the group improved its EBITDA to $14.1 million and expanded margins, reflecting a disciplined focus on operational efficiency and cost reduction. The leaner corporate centre and agency-level cost controls contributed to this improved financial stability.
Harnessing AI for Competitive Edge
A key theme in Enero’s strategic update is the integration of artificial intelligence across its agencies. BMF leverages AI tools to accelerate creative development and testing cycles, enabling faster and more cost-effective campaign launches. Orchard, already digitally focused, uses AI to streamline coding and infrastructure development. Hotwire has pioneered AI-driven media strategies, adapting to the rise of generative search engines and enhancing clients’ visibility in large language model environments.
This technology adoption not only boosts operational efficiency but also elevates the creative and strategic capabilities of Enero’s agencies, positioning them well amid industry consolidation and evolving client demands for measurable marketing returns.
Strong Start to FY26 and Leadership Renewal
The momentum continued into FY26, with a 13% increase in Group EBITDA in the first quarter, driven by strong performances from Australian agencies and further corporate cost savings. BMF expanded margins from 18.8% to 21.6%, while Orchard posted impressive revenue and EBITDA growth of 17% and 83% respectively year-on-year.
Hotwire Global, facing challenges in the technology sector, has implemented additional cost optimisations and successfully onboarded its largest client, Qualtrics. A new Global CEO for Hotwire has been appointed, set to commence in January 2026, signaling a renewed strategic focus on innovation and growth.
Outlook and Market Position
Looking ahead, Enero is committed to building on its core strengths, leveraging AI and automation to drive creativity and effectiveness. The group’s transparent disclosures and refined corporate support aim to empower its agencies to capture opportunities arising from industry consolidation and shifting client priorities.
With a robust net cash position of $27.5 million and a fully franked dividend payout reflecting confidence in its financial health, Enero appears poised to navigate the evolving marketing services landscape with agility and innovation.
Bottom Line?
Enero’s strategic pivot and AI-driven innovation set the stage for a potentially stronger growth trajectory amid a consolidating marketing industry.
Questions in the middle?
- How will the new Hotwire CEO shape the agency’s turnaround and growth strategy?
- What impact will AI integration have on Enero’s revenue growth beyond margin improvements?
- Can Enero sustain its margin expansion amid ongoing industry consolidation and competitive pressures?
