Sanoma (SAA1V) Q2 2026 earnings summary

Executive summary

• Net sales for H1 2026 were €555.8 million, down 1–2% year-over-year, with Learning growth driven by strong content sales in the Netherlands and Poland, and positive contribution from Vicens Vives; Media Finland faced headwinds from lower advertising and fewer events.

• Adjusted operating profit increased 7% to €46.4 million, supported by stable Learning earnings, improved profitability in Media Finland, and contributions from acquisitions.

• Three acquisitions in Learning (Vicens Vives, Fluentbe, Mr. Chadd) enhanced digital and AI-powered offerings and strengthened the Group's position in key European markets.

• The Group remains on track for a significant step change in adjusted operating profit for 2026, with Q3 being decisive for Learning.

• Media Finland improved profitability despite softer advertising sales, with digital subscriptions growth offsetting print decline.

Financial highlights

• Q2 2026 net sales were €334.7 million (-1% year-over-year); adjusted operating profit €62.6 million (+1%).

• H1 2026 adjusted operating profit in Learning was €29 million (2025: €28 million), including Vicens Vives.

• H1 free cash flow was negative at €-73.4 million, reflecting seasonality and higher investments; expected to grow moderately for the full year.

• Net debt increased to €775.8 million, with leverage at 3.0x adjusted EBITDA, peaking seasonally due to acquisitions and bond repayment; expected to fall below 2.5x by year-end.

• Adjusted EPS improved to €0.10 in H1 2026 (2025: 0.04); Q2 adjusted EPS was €0.23 (Q2 2025: 0.21).

Outlook and guidance

• Guidance unchanged; 2026 net sales expected at €1.29–1.34 billion, with adjusted operating profit €205–225 million and margin targeted above 23%.

• Free cash flow for 2026 expected to grow moderately, weighted to Q4.

• Q3 is decisive for Learning due to curriculum-driven sales phasing, especially in Southern Europe.

• Demand for learning content anticipated to rise due to curriculum renewals; Finnish advertising market expected to remain stable but uncertain.