Springer Nature (SPG) Q1 2025 earnings summary

Executive summary

• Achieved 6% underlying revenue growth and 11% adjusted operating profit growth in Q1 2025, primarily driven by the Research segment.

• Research accounted for about 80% of group revenue and over 90% of adjusted operating profit, with strong performance in full open access journals.

• Strategic focus advanced on open access transition, AI deployment in publication processes, and maintaining high employee engagement.

• Free cash flow increased to €158 million, supporting financial flexibility and deleveraging.

Financial highlights

• Reported Q1 2025 revenue was €450 million and adjusted operating profit €108 million.

• Underlying revenue grew 5.6% year-over-year; adjusted operating profit margin improved to 24.0–24.2% from 23.0–23.1%.

• Free cash flow improved by €15.5–16 million to €158 million; net financial debt reduced to €1.4 billion.

• Financial leverage reduced to 2.0x net debt/EBITDA, aided by €100 million senior loan repayment.

Outlook and guidance

• Full-year 2025 revenue expected in the upper half of €1,885–1,935 million range; adjusted operating profit in the upper half of €523–546 million range.

• Margin expansion anticipated, with adjusted operating profit margin expected to be at least at 2024 levels and improvement of 30–50 basis points.

• Education segment expected to recover in Q2 and show positive growth by end of H1.

• Mid-term outlook remains unchanged, with expectations for continued growth.