AcadeMedia (ACAD) Q2 24/25 earnings summary

Executive summary

• Net sales increased by 13.4% year-over-year in Q2, with 6.6% organic growth and improved profitability across all segments; adjusted EBIT rose to SEK 280 million from SEK 204 million.

• Student numbers grew 9.3% year-over-year, driven by acquisitions (notably Touhula in Finland) and international expansion, especially in Germany.

• All business segments reported improvements, with notable performance in international and adult education.

• Free cash flow increased to SEK 615 million, supporting investments and growth initiatives.

• Swedish schools maintained high international rankings, and compulsory schools outperformed national quality averages.

Financial highlights

• Q2 net sales reached SEK 5,025 million, up 13.4% year-over-year; adjusted EBIT margin improved to 5.6% from 4.6%.

• Earnings after tax rose 60.8% to SEK 209 million; EPS increased 67.6% to SEK 2.06.

• Free cash flow for the quarter was SEK 615 million, up 14.5% year-over-year; maintenance CapEx as a percentage of sales declined to 1.6%.

• Net debt (excluding IFRS 16) increased by SEK 35 million; leverage ratio at 0.6, well below target.

• Rolling 12-month net sales were SEK 18.3 billion, with adjusted EBIT of SEK 1,179 million and margin of 6.4%.

Outlook and guidance

• School voucher increases for 2025: just above 2.5% in Sweden, 4.5% in Norway, reflecting lower inflation.

• Margin improvement expected to stabilize, with no significant increase anticipated due to salary uncertainties.

• Adult education margins expected to remain within the 9%-11% corridor, with potential for short-term outperformance due to high unemployment.

• German preschool expansion to continue, targeting 8 new units in 2024/25.

• Management maintains financial targets: 5-7% annual revenue growth, 7-8% adjusted EBIT margin, and net debt/EBITDA below 3.0x.