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.

• First equity capital raise since IPO brought in $4 million from new partners; free cash flow increased 8%.

• The business has doubled six times in 19 years, demonstrating a scalable and efficient business system.

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

Financial highlights

• Underlying EBITDA (pre AASB 16) rose 19.2% to $38.1 million, with a margin at 28.3%.

• Underlying NPATA (group) up 21.3% to $25.8 million; margin at 19.2%.

• Earnings per share (underlying NPATA) increased to 20.19c, up 13.2% year-over-year.

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

• Cash conversion remained high at 99.8%.

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.

• Strategic review of capital structure and internal capital raise planned.

• Focus on scaling in English-speaking markets, with potential for further expansion in Canada and the U.K.

• No rush to raise equity; preference for capital efficiency and careful capital structure review.