Enero Reports 13% EBITDA Growth in FY26 Q1 After FY25 Revenue Dip

FY25 Financial Performance, Stability Amid Transition

At its 2025 Annual General Meeting, Enero Group reported a slight 3% decline in revenue to $138.7 million for the fiscal year ended June 30, 2025. However, the company managed to increase its EBITDA by 2% to $14.1 million, reflecting improved operational efficiency and margin growth. This performance came despite the strategic divestment of OBMedia, which was sold at the end of the fiscal year, signaling a sharper focus on core agency operations.

Net cash stood at a healthy $27.5 million, supported by a refinanced debt facility that was scaled back to align with the company’s reduced capital needs. The group also declared a dividend of 2.8 cents per share, maintaining a payout ratio consistent with historical levels.

Strategic Initiatives and AI Innovation

Enero’s management emphasized a multi-pronged strategy to drive future growth, centered on operational excellence, margin expansion, and technological innovation. A standout initiative is the launch of Hotwire’s AI Lab, which has already introduced three AI products designed to augment client service delivery and improve efficiency. This move positions Enero at the forefront of the evolving marketing services landscape, where AI-driven solutions are increasingly demanded by clients seeking better outcomes with constrained budgets.

The company is also leveraging its global footprint by combining onshore creative talent with offshore delivery centres of excellence, optimizing cost structures while maintaining high-quality service. The redefinition of the Agency CFO role to COO reflects a broader shift towards operational leadership and agility.

Strong Start to FY26 and Market Positioning

The FY26 first quarter trading update highlighted a 13% increase in group EBITDA and an expansion in margins, driven primarily by strong performances from Australian agencies and lower corporate costs. Notably, Hotwire Global, BMF, and Orchard all reported revenue growth and improved EBITDA margins, with BMF winning industry accolades such as the Effie Awards for the second consecutive year.

Management confirmed no plans to expand the debt facility, underscoring a commitment to healthy cash generation and disciplined capital management. The group remains open to small, strategic acquisitions to complement organic growth, particularly in the AI product space and performance marketing.

Governance and Shareholder Support

Shareholders overwhelmingly supported key resolutions at the AGM, including the adoption of the remuneration report, the re-election of Chair Ian Rowden, and approval of the Enero Rights Plan. The conditional spill resolution, which could have triggered a board re-election, was decisively rejected, indicating strong investor confidence in current leadership and strategy.

These governance outcomes, combined with improved transparency and refreshed executive leadership, signal a company focused on delivering sustained value amid a rapidly changing industry environment.