EDU Holdings Targeting Record 1H26 as Higher Education Enrolments Jump 57%

EDU Holdings (ASX: EDU) expects record first-half results for the six months to 30 June 2026, with revenue at the guidance midpoint rising 48% on the previous corresponding period to $53.5 million.

EBITDA is expected to increase 51% to $16.5m, while profit before tax is forecast to climb 57% to $13.0m.

Higher Education enrolments through the Ikon business rose 57% in Trimester 2, driven by resilient international demand and strong domestic commencements across an expanded undergraduate and postgraduate course portfolio.

EDU expects to close the half with net cash of $24.0m despite returning $15.2m to shareholders through dividends and share buybacks.

Higher Education Drives Growth

Ikon continued to underpin group performance as new courses attracted domestic and international students and existing cohorts progressed through their studies.

The layering effect from continuing students supported enrolment growth, with EDU expecting larger graduating cohorts from 2027 as the expanded student base advances through its courses.

Growth at Ikon more than offset softer enrolments at ALG, the group’s Vocational Education and Training (VET) business, as the broader VET market contracted.

EDU has also recorded encouraging early uptake from its recently implemented onshore recruitment model after adapting to National Code reforms affecting international student transfers.

EBITDA Margins Rise

The midpoint of EDU’s guidance implies an EBITDA margin of 31%, an increase of one percentage point from the comparable period.

That improvement comes despite higher costs from launching courses and adding organisational capacity intended to support current operations and future growth.

“We have continued to invest in new courses, people, systems, and campuses, while also delivering an improved EBITDA margin, demonstrating the operating leverage in the platform,” chief executive officer Adam Davis said.

“We are well placed to continue investing in our domestic, offshore and onshore recruitment channels, and expanding our course portfolio to drive sustainable long-term growth."

EDU expects revenue of between $52.5m and $54.5m, EBITDA of $16.0m to $17.0m, and profit before tax of $12.5m to $13.5m, with net cash forecast to increase by $5.5m from 31 December 2025 as strong operating inflows during the first half outweighed capital returned to shareholders.