Enero Group Limited (ASX:EGG): FY26 Earnings, Agency Performance and Dividend

Aditi Sarkar

15 October 2026 03:29 PM AEDT

Enero Group Limited (ASX:EGG): FY26 Earnings, Agency Performance and Dividend

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Highlights

FY26 continuing-operations net revenue declined 7% to $129.5 million.
EBITDA increased 9% to $15.3 million, with the margin rising to 11.8%.
BMF and Orchard recorded EBITDA growth of 27% and 25%, respectively.
A $39.8 million non-cash impairment contributed to a statutory net loss.
Directors declared a fully franked final dividend of 1.4 cents per share.

Enero Group Limited (ASX:EGG) operates marketing and technology agencies serving clients in technology, healthcare and consumer markets. Its portfolio includes creative agency BMF, digital and experiential agency Orchard, and communications business Hotwire Global. For the year ended 30 June 2026, the group reported higher EBITDA and adjusted earnings alongside lower net revenue and a substantial statutory impairment.

Lower Revenue, Higher Operating Margin

For FY26, Enero Group (ASX:EGG) reported continuing-operations net revenue of $129.5 million, down 7% from $138.7 million in FY25. The company attributed the reduction to difficult conditions in international technology markets, changes at Hotwire and an unfavourable US dollar movement. On a constant-currency basis, net revenue declined 5%.

Despite the revenue decline, ASX:EGG recorded EBITDA of $15.3 million, compared with $14.1 million in FY25, an increase of 9%. The EBITDA margin expanded from 10.2% to 11.8%. Enero said its leaner corporate centre reduced expenses by 8% year on year, contributing to the improvement in operating profitability.

Australian Agencies Offset Hotwire Pressures

BMF delivered FY26 EBITDA of $8.8 million, 27% above the prior year, while net revenue increased 11% to $38.0 million. Its EBITDA margin reached 23.2%, versus 20.1% in FY25. Orchard recorded EBITDA of $6.1 million, up 25%, and net revenue of $28.2 million, up 9%, with a margin of 21.8%.

The performance mix shifted toward Australia and Asia, which contributed 69% of group EBITDA compared with 53% in FY25. Conversely, Hotwire faced reduced technology-client expenditure: its FY26 net revenue declined 19% to $63.3 million, while EBITDA fell 33% to $7.4 million. Hotwire retained an 11.6% EBITDA margin.

Adjusted Profit, Impairment and Cash

Enero Group (ASX:EGG) reported adjusted net profit after tax attributable to shareholders of $6.4 million, up 54% from $4.2 million. Adjusted earnings per share increased from 4.6 cents to 7.0 cents. These adjusted figures exclude specified acquired-intangible amortisation and other adjustments under the company’s reporting definitions.

Statutory results differed materially. ASX:EGG recorded a net loss after tax attributable to shareholders of $37.4 million, compared with a $4.1 million loss in FY25, following a $39.8 million non-cash impairment and intangible write-down, predominantly associated with ROI·DNA. Net cash was $24.5 million at 30 June 2026, compared with $27.5 million one year earlier.

Dividend and Operating Changes

Enero Group (ASX:EGG) declared a fully franked FY26 final dividend of 1.4 cents per share, representing 31% of adjusted earnings per share. The record date was 8 September 2026, and payment was scheduled for 1 October 2026. The company described a dividend policy linked to 30%–50% of adjusted earnings per share.

During FY26, Enero expanded the use of artificial intelligence across its agencies. BMF introduced a proprietary AI platform for creative and production workflows, Orchard implemented its Agentic by Default programme, and Hotwire developed its AI Lab offerings. These measures form part of efforts to adapt services and costs to changing client requirements.

Key Insights

Enero Group (ASX:EGG) entered FY27 with improved continuing-operations EBITDA margins but a narrower net cash position and ongoing pressure in international technology-focused services. Differences between adjusted and statutory results are particularly important for understanding FY26: operational earnings increased, while the impairment drove a larger reported loss. Performance across its three principal agencies remained uneven.

FAQs

Q: What businesses does Enero Group operate?

A:Its main agencies are BMF, Orchard and Hotwire Global, covering creative, digital and communications services.

Q: Did Enero’s FY26 EBITDA increase?

A:Yes. Continuing-operations EBITDA rose 9% to $15.3 million, while net revenue declined 7%.

Q: Why did Enero report a statutory loss?

A:Its FY26 result included a $39.8 million non-cash impairment and intangible write-down.

Q: What was the FY26 final dividend?

A:Directors declared 1.4 cents per share, fully franked, with a payment date of 1 October 2026.

Q: What explains the difference across agencies?

A:BMF and Orchard grew EBITDA in FY26, whereas Hotwire experienced lower technology-client spending.

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