AcadeMedia (ACAD) Q4 24/25 earnings summary

Executive summary

• Net sales grew 9.7% year-over-year to SEK 19,021 million, with 5.8% organic growth and all segments contributing to profitable growth.

• Average number of children and students increased 7.0% to 111,290, despite a declining demographic trend.

• International operations and Adult Education now represent about 40% of sales, with significant expansion in Germany and the Netherlands.

• The Board proposes a dividend of SEK 2.25 per share and plans a voluntary share redemption or buyback program.

• All business segments showed positive trends, supported by quality initiatives and investments to address demographic challenges.

Financial highlights

• Q4 net sales: SEK 5,118 million (+5.4% YoY); full year: SEK 19,021 million (+9.7% YoY).

• Adjusted EBIT rose to SEK 467 million in Q4 (margin 9.1%) and SEK 1,281 million for the year (margin 6.7%), up 16.8% YoY.

• Profit for the period increased 29.9% to SEK 821 million; diluted EPS was SEK 8.14 (up 34.3%).

• Free cash flow for the year was SEK 1,109 million; cash flow from operating activities totaled SEK 1,397 million.

• Leverage ratio (excl. IFRS 16) at 0.5, well below the target of 3.0.

Outlook and guidance

• Preliminary student numbers for 2025/26 indicate stable demand and ~3% growth to 112,500 students.

• High unemployment rates in Sweden are expected to sustain strong volumes and margins in adult education for the coming year.

• Margin improvement in the preschool and international segment is necessary to reach overall margin targets; progress is about halfway, with full potential expected within two years.

• Plan to open about 10 new preschools in 2025/26, mainly in Germany.

• Financial targets remain unchanged: annual revenue growth of 5-7%, adjusted EBIT margin of 7-8%, and net debt/EBITDA below 3.0x.