Experian (EXPN) H1 2025 earnings summary

Executive summary

• Achieved 7% organic revenue growth in H1 FY2025, with margin expansion ahead of expectations and strong progress on strategic initiatives; benchmark EBIT grew 8% at actual FX rates and 10% at constant rates.

• All regions contributed positively, with B2B and Consumer Services both showing strong growth; over 190 million free members globally.

• Major acquisitions included illion (Australia/NZ), NeuroID, SalaryFits, TEx, and agreement to acquire ClearSale in Brazil; $818m invested in acquisitions.

• Interim dividend per share increased 7% to 19.25 US cents.

• Statutory profit before tax declined 6% to $718m due to non-cash fair value movements; statutory basic EPS down 3%.

Financial highlights

• Total revenue reached $3,617m, up 7% at constant FX and 6% at actual FX rates; statutory revenue $3,628m.

• Benchmark EBIT from ongoing activities: $1,011m (up 10% constant, 8% actual rates); margin 28.0% (up 60bps).

• Benchmark EPS grew 8% to 76.0 US cents; underlying EPS and dividend per share rose by 8% and 7% respectively.

• Operating cash flow at $707m, with 71% conversion in a seasonally weaker half; free cash flow $426m.

• Net debt to EBIT/EBITDA leverage at 2.0x, bottom of target range; undrawn committed bank facilities of $2.1bn.

Outlook and guidance

• FY2025 organic revenue growth expected at 6%-8%; acquisition contribution to revenue increased to 1.5%.

• Margin expansion now expected at the upper end of 30-50 basis points guidance.

• FX expected to be a 2% headwind to revenue and EBIT growth.

• CapEx guidance unchanged at 9% of revenue; cash flow conversion to remain over 90% for the full year.

• Share buyback program of up to $150 million to be completed by June 2025.