Nido Education (NDO) H1 2025 earnings summary

Executive summary

• Delivered over 450,000 days of learning in a challenging market, with service EBITDA up 8% to $12.8m and a $229k per service run rate.

• Opened five new services, expanded the managed network from 99 to 107, and are progressing a pipeline of over 100 services for future growth.

• Launched a new kindergarten curriculum, invested in educator support, risk, and compliance, and enhanced leadership roles.

• Interim fully franked dividend of 1.5 cents per share declared, with strong balance sheet supporting growth and acquisitions.

• Completed a $2.3m acquisition post-period, funded by existing borrowing facilities.

Financial highlights

• Group revenue reached $82.8m, up 8% year-over-year; service EBITDA was $12.8m, group EBITDA $6.6m, and NPAT $4.6m.

• Net profit after tax declined to $2.5m in the latest period, with earnings per share at 1.10 cents.

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

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

• Dividends paid during the period totaled $13.2m.

Outlook and guidance

• Expecting to open five more services by December 2025 and at least 19 in FY 2026 and beyond, with a pipeline of over 100 sites.

• Sector outlook expected to improve in FY26 due to government reforms increasing access and affordability.

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

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

• Management forecasts positive cash flows for at least the next 12 months, with sufficient liquidity.