Kelly Partners Group (KPG) H2 2026 earnings summary

Executive summary

• Revenue increased 18.2% year-over-year to AUD 159.2 million, driven by both organic growth (2.9%) and acquisitions (15.3%), marking an 800x increase since 2006.

• Underlying NPATA attributable to shareholders rose 18.9% to AUD 10.8 million, with underlying EBITDA up 18.6% to AUD 45.2 million and a margin of 28.4%.

• The partner-owner-driver model underpins the business, with 105 partners and over 700 staff across 43 businesses in six countries.

• Global operations expanded to five countries, with US operations now contributing 15% of total revenue and recent expansion into Dublin.

• Six acquisitions completed in FY26, adding up to $22.2 million in annualized revenue and fueling international growth.

Financial highlights

• Revenue per FTE rose to AUD 224,000, up 10% year-over-year, with group revenue at AUD 159.2 million and underlying EBITDA margin at 28.4%.

• Cash conversion was 104.9%, with operating cash flow up 30.1% to AUD 32.4 million.

• Free cash flow per share rose 17.5% to AUD 0.221; owner earnings per share up 17.5% to 22.14c.

• Return on equity reached 40.8% at group level and 35.7% at parent level; ROIC stable at 23.2%.

• Net debt increased to AUD 70.7 million, with gearing at 1.52x underlying EBITDA and cash/facility headroom of AUD 18.6 million.

Outlook and guidance

• Targeting further global expansion, especially in the US and UK, with a focus on scaling the partner-owner-driver model and leveraging digital infrastructure.

• Illustrative scenario targets doubling revenue to AUD 270 million by FY28, maintaining a 32.5% EBITDA margin and 10% NPATA margin.

• Exploring international exchange listing, long-dated debt funding, and a dual-class structure for governance.

• No plans to reinstate dividends while high ROIC opportunities persist; special dividends possible if listing venue changes.

• Confident in closing profitability gaps in new markets, especially the US, and scaling acquisition teams globally.