EDU’s Profit Explosion Raises Questions on Sustainability and Growth
EDU Holdings Limited has reported a remarkable financial turnaround for FY2025, nearly doubling revenue and delivering a 469% jump in net profit, alongside declaring its first-ever dividends.
- Revenue nearly doubles to $82.4 million
- Net profit surges 469% to $14.8 million
- EBITDA rises significantly to $26.1 million
- Maiden fully-franked interim and final dividends declared
- Net tangible asset backing turns positive to 2.7 cents per share
Strong Revenue Growth Signals Market Momentum
EDU Holdings Limited has delivered an impressive financial performance for the year ended 31 December 2025, with revenue soaring to $82.4 million, nearly double the $42.3 million recorded in the prior year. This surge reflects robust demand and operational expansion within the education services sector, positioning EDU as a company gaining significant market traction.
Profitability Leaps Amid Operational Efficiency
The company’s net profit after tax skyrocketed by 469% to $14.8 million, a striking turnaround from $2.6 million in 2024. EBITDA also climbed substantially to $26.1 million, underscoring improved operational efficiency and cost management. Notably, EBIT remained strong, with no reported gains from lease modifications or asset disposals, indicating core business strength.
Shareholder Returns and Balance Sheet Health
In a milestone move, EDU declared its maiden fully-franked interim dividend of $0.01 per share during the year, followed by a fully-franked final dividend of $0.03 per share declared post year-end. This marks a significant shift towards rewarding shareholders and reflects confidence in sustainable cash flow generation. Additionally, net tangible asset backing per share improved to a positive 2.7 cents, reversing the previous year's negative position, which may enhance investor sentiment.
Governance and Outlook
The company’s annual report, released alongside this preliminary final report, includes an unqualified independent audit opinion, reinforcing the credibility of these results. While no changes in control of entities occurred during the year, investors will be keen to explore the detailed commentary in the full report for insights into strategic initiatives and future growth drivers.
Bottom Line?
EDU’s breakout year sets a new benchmark, next, all eyes turn to sustaining growth and dividend momentum.
Questions in the middle?
- What operational factors drove the near doubling of revenue in 2025?
- How sustainable are the profit margins amid evolving education sector dynamics?
- Will EDU continue its dividend policy and what are the implications for future capital allocation?
