REA Group (REA) H2 2026 earnings summary

Executive summary

• Revenue grew 7% year-over-year to AUD 1.79 billion, with EBITDA up 12% to AUD 1.09 billion and net profit after tax up 15% to AUD 650 million from core operations.

• Free cash flow increased 17% to AUD 628 million, supporting a 20% increase in total dividends to AUD 2.97 per share and a AUD 200 million share buyback.

• Strategic focus on AI, data, and immersive experiences led to record audience engagement and product innovation.

• Sale of the Indian business (housing.com) to Aurum PropTech, with REA retaining a 24.9% stake, and acquisitions of Simplicity and Planitar (iGUIDE) streamlined operations and diversified offerings.

• EPS climbed 15% to AUD 4.93, and final dividend rose 25% to AUD 1.73 per share.

Financial highlights

• Revenue up 7% to AUD 1.79 billion; EBITDA (ex-associates) up 12% to AUD 1.09 billion; NPAT up 15% to AUD 650 million year-over-year.

• Free cash flow up 17% to AUD 628 million; EPS up 15% to AUD 4.93.

• Dividend payout increased 20% to AUD 2.97 per share; inaugural AUD 200 million share buyback completed.

• On a continuing business basis (excluding India), revenue and EBITDA up 12%, NPAT and EPS up 14%, free cash flow up 18%.

• Reported net profit fell 19% to AUD 552 million due to a AUD 111 million impairment of REA India and a prior year AUD 117 million impairment reversal.

Outlook and guidance

• FY27 guidance: national buyer listings expected to be flat to down low single digits; July listings down 2% year-over-year.

• Controllable residential buy yield growth (ex-geo mix) anticipated in low double digits, driven by 8% Premiere+ price rise and add-ons.

• Operating costs (ex-M&A) expected to rise mid-single digits; group costs (inc. M&A) to rise mid to high single digits.

• Operational margin expansion targeted; modest improvement expected in combined associates' losses.

• Market fundamentals remain solid, but interest rates and tax changes are key sources of uncertainty.