Enero Group (EGG) H1 2026 earnings summary

Executive summary

• Net profit and EPS more than doubled year-over-year, driven by strong cost management and operational excellence despite a slight revenue decline due to challenging international technology market conditions.

• EBITDA before significant items rose 15% to $7.4 million, with margin improving to 10.8% from 9.3% year-over-year, driven by cost optimization and improved performance in Australian agencies.

• Interim dividend of 1.0 cent per share, fully franked, with a payout ratio of 39% on adjusted EPS.

• International markets contributed 48% of net revenue and 31% of EBITDA, down from 66% and 53% respectively in the prior year.

• Statutory net profit after tax attributable to equity owners was $0.3m, a turnaround from a $4.3m loss in the prior year.

Financial highlights

• Net revenue from continuing operations was $68.0m, down 1% year-over-year.

• Adjusted net profit after tax rose 119% to $2.3m; adjusted EPS up 119% to 2.5 cents.

• EBITDA before significant items: $7.36 million (2025) vs $6.39 million (2024), up 15%.

• Free cash flow was -$1.8m, impacted by client cash movements and restructuring; excluding these, free cash flow was $3.2m.

• Net cash position at $23.6m with zero leverage.

Outlook and guidance

• Dividend payments targeted to remain within a 30%-50% payout ratio of adjusted EPS.

• Continued focus on cost management and operational efficiency to offset market headwinds.

• Macroeconomic uncertainty and cost-of-living pressures continue to impact client spending and market sentiment, with management incorporating these factors into forecasts.