Kelly Partners Group (KPG) H2 2025 earnings summary

Executive summary

• Revenue grew 24.5% year-over-year to $134.6 million, driven by 4.5% organic growth and 20% from acquisitions, with a run rate of $150 million and 660 team members across 38 businesses in 5 countries.

• Underlying NPATA attributable to shareholders increased 13% to $9.1 million, with underlying EBITDA up 19.2% to $38.1 million and margin at 28.3%.

• Cash conversion remained strong at 99.8%, with operating cash flow up 23.3% to $24.9 million.

• International expansion continues, with the U.S. business now contributing up to 17% of revenue and operations in five markets.

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

Financial highlights

• Revenue reached $134.6 million, up 24.5% from the prior year, driven by organic growth and acquisitions.

• EBITDA was $38.1 million, up 19.2% year-over-year, with group EBITDA margin at 28.3%.

• Underlying NPATA (group) up 13% to $9.1 million; EPS up 13.2% to 20.2c.

• Cash from operations was $24.9 million, up 23.3%, and free cash flow to firm after debt reduction increased 7.2%.

• Net debt increased to $58.5 million, with gearing ratio rising to 1.42x due to acquisition-related borrowings.

Outlook and guidance

• Management remains confident in the business model and expects to continue delivering strong returns, targeting continued growth through programmatic acquisitions and organic expansion.

• Focus remains on scaling in English-speaking markets, especially the US, UK, and Canada, and investing in digital infrastructure.

• Strategic review of capital structure and internal capital raise planned, with no rush to raise equity and a preference for capital efficiency.