Nido Education (NDO) H1 2025 earnings summary

Executive summary

• Delivered an 8% increase in group revenue to $82.8m and service EBITDA of $12.8m, maintaining a $229k per service run rate and a 16% margin, despite a challenging market.

• Over 450,000 days of learning delivered in the first half, with operational resilience and productivity improvements.

• Net profit after tax (NPAT) declined 17% to $4.6m year-over-year, reflecting higher support office costs and sector headwinds.

• Interim fully franked dividend of 1.5 cents per share declared, with payment in September 2025.

• Strategic investments made in curriculum, educator support, facilities, risk, and compliance.

Financial highlights

• Group revenue reached $82.8m, service revenue $79.5m, group EBITDA $6.6m, and NPAT $4.6m for the half.

• Cash conversion rate at 97%, net leverage ratio at 0.5x, and $34m in acquisition facility available.

• Interim dividend yield at 2.0% on current share price; earnings per share (basic) at 1.10 cents for HY2025.

• Support office costs increased by $1.8m year-over-year.

• $0.4m in shares acquired under the buyback program.

Outlook and guidance

• Pipeline includes over 100 sites at various stages, with 19 expected to open in the next 15 months and five more by December 2025.

• Sector outlook expected to improve in FY2026 with government reforms increasing access and affordability.

• Fee increases of ~4% planned for July 2025 after holding fees steady in January.

• No explicit occupancy forecasts, but inquiries remain steady and conversion is more challenging.