Sanoma (SAA1V) Q1 2026 earnings summary

Executive summary

• Adjusted operating profit improved year-over-year in both learning and media segments, despite seasonally negative results, with stable net sales at EUR 221.1 million as learning growth offset weaker advertising in Finland.

• Free cash flow was stable at EUR -38.9 million, reflecting typical seasonality, and leverage stood at 2.6x, close to the 2.5x target, following hybrid bond repayment.

• The acquisition of Vicens Vives in Spain was completed, strengthening the learning segment's position and supporting future growth.

• Outlook for the year remains unchanged, with significant growth expected in Q3, especially in learning.

• Operating profit improved to EUR -28.9 million from EUR -31.3 million, with items affecting comparability totaling EUR -5.3 million.

Financial highlights

• Net sales: EUR 221.1 million (flat year-over-year); adjusted operating profit: EUR -16.1 million (up 14% year-over-year); adjusted EBITDA: EUR 26.5 million (margin 12.0%).

• Result for the period improved to EUR -24.1 million (Q1 2025: EUR -28.4 million); adjusted EPS: EUR -0.13 (Q1 2025: -EUR 0.17).

• Free cash flow: EUR -38.9 million, reflecting seasonal patterns; free cash flow per share: EUR -0.24.

• Net debt/Adjusted EBITDA: 2.6 (Q1 2025: 2.4), following hybrid bond repayment; net debt increased to EUR 685.8 million.

• Average number of employees: 4,507, down 2% year-over-year.

Outlook and guidance

• Full-year outlook unchanged; 2026 net sales expected at EUR 1.29–1.34 billion and adjusted operating profit at EUR 205–225 million.

• Significant profit growth expected in Q3, especially in learning; step change in adjusted operating profit growth anticipated for 2026–2030, driven by learning.

• Adjusted operating profit margin expected to exceed 23%, with Vicens Vives acquisition pushing expectations toward the higher end of guidance.

• Demand for learning content to increase due to curriculum renewals; Finnish advertising market expected to remain stable.

• Digital subscription growth in media expected to continue, while advertising remains uncertain.