Endeavour Group (EDV) H2 2025 earnings summary

Executive summary

• Group revenue remained stable at $12.1b for FY2025, with strong Hotels momentum offsetting softness in retail liquor sales on a 52-week comparable basis.

• Hotels segment saw 4.1% sales growth across gaming, food, beverage, and accommodation, supported by investments in renewals and guest experience.

• Retail sales declined 1.2% due to subdued consumer spending and supply chain disruptions, impacting peak trading periods.

• Net profit after tax was $426m, down 15.8% year-over-year, including $11m post-tax restructuring costs.

• Strategic initiatives included business simplification, cost optimization, and a group-wide strategy refresh with a new CEO commencing January 2026.

Financial highlights

• Group sales: $12.1b (-0.3% year-over-year, 52-week basis); operating EBIT fell 7.3%, with hotel growth offset by retail decline.

• Net profit after tax was $426m, down 15.8% year-over-year.

• Free cash flow improved by $129m, with operating cash flow at $1.2b and cash realisation ratio at 110%.

• Fully franked final dividend of 6.3c per share, full year payout of 18.8c per share (79% of NPAT).

• Leverage ratio at 3.6x, slightly above target range due to reduced earnings and one-off costs.

Outlook and guidance

• Focus for 1H FY2026 is on flawless execution during the event season, leveraging key social occasions.

• Hotel sales momentum expected to continue, supported by renewals and loyalty program enhancements.

• Retail market conditions expected to improve as inflation moderates and real wages rise.

• Ongoing strategy refresh to inform future priorities, with outcomes to be shared in 2H FY2026.

• FY2026 finance costs expected to be broadly in line with FY2025; capex guidance $420m–$470m, including $90m–$110m for One Endeavour program.