Enero Group (EGG) H1 2026 earnings summary

Executive summary

• Net profit and EPS more than doubled year-over-year, with adjusted net profit after tax up 119% to $2.3 million and adjusted EPS up 119% to 2.5 cents, driven by strong cost management and operational excellence despite a 1% revenue decline due to challenging international technology market conditions.

• EBITDA increased 15% year-over-year to $7.4 million, with margin improving to 10.8% from 9.3%, supported by cost optimization and improved performance in Australian agencies.

• Australian agencies BMF and Orchard posted robust results, offsetting softness in international technology markets, while Hotwire faced revenue and EBITDA declines but maintained double-digit margins through cost reductions.

• Interim dividend of 1.0 cent per share, fully franked, was declared with a payout ratio of 39% on adjusted EPS.

• International markets contributed 48% of net revenue and 31% of EBITDA, down from 66% and 53% respectively in the prior year.

Financial highlights

• Net revenue from continuing operations was $68.0 million, down 1% year-over-year.

• Adjusted net profit after tax rose 119% to $2.3 million; adjusted EPS up 119% to 2.5 cents.

• Statutory net profit after tax attributable to equity owners was $0.3 million, a turnaround from a $4.3 million loss in the prior year, including $1 million in restructuring costs and $1 million in amortisation of acquired intangibles.

• Free cash flow was -$1.8 million, impacted by client cash movements and restructuring; excluding these, free cash flow was $3.2 million.

• Net cash position at $23.6 million as at 31 December 2025, with zero leverage.

Outlook and guidance

• Dividend payments targeted to remain within a 30%-50% payout ratio of adjusted EPS.

• Continued focus on cost management, operational efficiency, and rebuilding revenue momentum, especially at Hotwire, to offset market headwinds.

• Macroeconomic uncertainty and cost-of-living pressures continue to impact client spending and market sentiment, with management incorporating these factors into forecasts.