Kelly Partners Group (KPG) H1 2026 earnings summary

Executive summary

• Revenue grew 17.1% year-over-year to $76.99 million, with 4.2% organic growth and 12.8% from acquisitions; underlying NPATA attributable to members increased 12.8% to $5.6 million.

• Statutory net profit after tax for the half-year was $8.26 million, down 4.6% year-over-year due to higher amortisation and one-off acquisition costs.

• Six acquisitions completed in the period, expanding international presence and contributing to both organic and acquired growth.

• Net debt increased to $77.1 million, mainly to fund acquisitions; net debt to EBITDA at 1.79x.

• Dividend payments ceased in February 2024 to prioritize capital allocation for growth.

Financial highlights

• Group revenue increased to $76.99 million, up 17.1% year-over-year; run rate at $164.2 million.

• Underlying EBITDA increased 9.5% to $22.29 million; group EBITDA margin at 27.6%.

• Underlying NPATA for the parent rose 12.8% to $5.6 million; earnings per share (underlying NPATA) grew 11.9% to 12.27c.

• Cash from operations increased 6.4% to $18.57 million; cash conversion remained high at 101.1%.

• Net assets at 31 December 2025 were $71.66 million, up from $66.48 million at 30 June 2025.

Outlook and guidance

• Confident in continued strong growth in Australia and internationally, with a robust M&A pipeline and focus on programmatic acquisitions.

• Strategy to become a top 10 accounting firm in Australia is progressing, with ongoing investment in internal software and AI capabilities to drive efficiencies.

• Targets 35% EBITDA margin and 5% annual growth in accounting and complementary businesses.

• Intends to pursue a listing on a market other than the ASX once debt structuring is resolved.

• Buyback program renewed post-blackout to support share price.