ADvTECH (ADH) H2 2025 earnings summary

Executive summary

• Revenue increased 10% year-on-year to ZAR 9.3 billion, with operating profit up 14% to over ZAR 2 billion for the first time.

• Operating margin improved to 21.8% from 21%, and headline and normalized EPS both grew by 17%.

• Dividend increased 17% to ZAR 1.18, maintaining a 50% payout of normalized EPS.

• Major restructuring simplified tertiary brands from six to two, resolving a 20-year legal dispute and improving operational focus.

• Launched a new visual identity and transitioned to a global domain, reflecting international growth ambitions.

Financial highlights

• Revenue increased by 10% to R9,330.4 million year-over-year; operating profit rose 14% to R2,038.2 million.

• Operating margin rose to 21.8%, driven by efficiencies and a shift to higher-margin education businesses.

• Normalized EPS grew 17% year-over-year; compounded at 18% over five years.

• Dividend up 17% to ZAR 1.18; five-year dividend CAGR at 24%.

• Cash generated from operations grew 13% to R2,570 million; operating activities cash flow up 20% year-over-year.

Outlook and guidance

• Continued focus on expanding capacity in high-demand schools and tertiary campuses, especially in Africa.

• Ongoing investment in new builds, acquisitions, and university status applications, with significant CapEx planned for 2027–2028.

• Positive outlook for ROIC, expected to improve with scale and operating leverage.

• Confident in maintaining growth trajectory, supported by demographic tailwinds and a sound balance sheet.

• Strategic focus remains on education, with resourcing business under review.