EDU’s pivot to accredited, higher-margin degrees has delivered 50.4% half-year revenue growth and net cash, with enrolment expansion and postgraduate launches offering upside against meaningful regulatory and execution risks.
Overview
EDU Holdings operates Ikon Institute, a specialist higher-education provider, alongside ALG, a vocational training group. The strategic pivot has materially changed the earnings mix: higher education represents approximately 80% of group revenue and more than 90% of operating earnings, with Ikon contributing A$45.80 million, or 84.4% of 1H26 revenue. The model targets labour-shortage disciplines and combines multi-year tuition cohorts with accredited, placement-led programs. **The 1H26 result confirmed strong momentum:** revenue rose 50.4% to A$54.28 million, EBITDA increased 51.4% to A$16.50 million at a 30.4% margin, and NPAT grew 49.1% to A$9.32 million; revenue reached the upper end of guidance. EPS of A$0.072 missed consensus by 6.8% due to front-loaded compliance, academic support and course-launch spending. EDU held A$24.0 million net cash and declared a fully franked A$0.03 interim dividend. At A$1.05, the stock trades at 12.48x TTM P/E and approximately 4.2x EV/EBITDA. **The report’s probability-weighted FY31 price is A$2.88**, with Master of Social Work enrolments, buybacks and broader broker coverage as catalysts; migration regulation and delivery capacity are key risks.