Raffles Education (NR7) H2 2026 earnings summary

Executive summary

• FY2026 revenue fell 4.4% to S$106.8m, mainly following the disposal of HFYR; adjusted EBITDA rose 52.3% to S$29.6m.

• Profit before tax was S$6.8m, but the year ended with a S$6.4m net loss after tax, affected by the HFYR disposal loss, related tax provisions and foreign-exchange movements.

• Borrowings declined to S$86.2m from S$208.7m, net gearing fell to 7% from 34%, and cash and cash equivalents increased to S$39.1m from S$16.9m.

Financial highlights

• Revenue was S$106.823m in FY2026 versus S$111.710m in FY2025, down 4.4%; adjusted EBITDA was S$29.556m versus S$19.406m, up 52.3%.

• Profit before tax fell 22.4% to S$6.779m; net loss after tax was S$6.352m versus net profit of S$4.358m in FY2025.

• Other operating income was S$71.616m, including a S$52.8m gain on 51 Merchant Road and S$16.8m foreign-exchange gain; other operating expenses included a S$29.4m HFYR disposal loss.

• Net cash generated from operating activities rose to S$12.584m from S$4.349m; ending cash and cash equivalents were S$39.136m versus S$16.861m.

Outlook and guidance

• Focus remains on operational efficiency, disciplined cost management, student recruitment, restructuring and portfolio optimisation while continuing to develop education operations.

• Langfang reclamation proceeds are expected in two tranches by end-2026; estimated net proceeds are RMB270.7m, with a 70% share estimated at RMB174.2m, or ~S$31m.