Key Points:
- AcadeMedia saw its third-quarter adjusted operating profit jump by 13.5% to reach SEK 438 million.
- Net sales climbed 6.6% to hit SEK 5.37 billion, largely fueled by a booming preschool and international division.
- Upper secondary schools experienced a slight dip in profit margins due to higher staffing costs and new library legislation.
- The company recently acquired Dutch institution IVA Business School and Swedish school group Prolympia to expand its footprint.
AcadeMedia AB, the largest education provider in Europe, delivered impressive financial results for its third quarter ending March 31. The company reported a 13.5% increase in its adjusted operating profit, showcasing strong momentum across its international and adult education branches. These gains successfully overshadowed weaker financial performance in its upper secondary school division.
The financial report shows solid growth across major categories. Net sales grew 6.6% to reach SEK 5.37 billion, moving up from SEK 5.04 billion during the same period last year. The education group achieved an organic growth rate of 6.3%, even though negative currency effects shaved 1.3 percentage points off the total revenue. Overall profit for the quarter climbed to SEK 290 million from SEK 241 million, boosting diluted earnings per share to SEK 2.93.
Core profitability metrics look very healthy for the education giant. Adjusted EBITA increased to SEK 438 million, rising from SEK 386 million a year ago. The adjusted EBITA margin widened to 8.2% from 7.7%. Meanwhile, the standard operating profit rose 8% to hit SEK 539 million.
The Preschool and International division delivered the most impressive turnaround during the quarter. This segment saw its adjusted EBITA surge to SEK 169 million from SEK 125 million. The profit margin grew from 6.7% to a robust 8.1%. Net sales in this division leaped 11.3% to SEK 2.08 billion. The company enrolled more children, pushing the average number of students up 11.3% to a total of 39,415 students.
Adult education also proved highly profitable for AcadeMedia. The segment reported an adjusted EBITA of SEK 67 million, up from SEK 56 million last year. The profit margin here expanded to a strong 13.5%, beating the previous 12% margin. This indicates steady demand for professional training and continuing education programs across the region.
The upper secondary school segment faced some notable hurdles during the three months. Adjusted EBITA for this division dropped to SEK 127 million from SEK 139 million. The profit margin shrank to 8.1% from 9.2%. Company leaders explained that new government legislation required them to hire additional library staff, which increased overall personnel costs across the division.
Despite higher staffing costs, the upper secondary division found ways to save money elsewhere. Lower rental costs provided some financial relief. The schools also improved their capacity utilization, filling more empty seats in their classrooms. Capacity utilization reached 86.3% during the quarter, edging slightly past the 86.1% rate seen a year earlier.
AcadeMedia maintained a solid cash position throughout the third quarter. Free cash flow climbed to SEK 288 million, up significantly from SEK 186 million. The company spent heavily on expansion, investing SEK 574 million. This spending spree primarily funded recent business acquisitions, a stark contrast to the modest SEK 78 million spent on expansion during the prior year.
The balance sheet remains well within safe limits. Net interest-bearing debt stood at SEK 1.75 billion on March 31, 2026. This reflects an increase from SEK 1.24 billion the year before. The company reported a net debt-to-adjusted EBITDA ratio of 0.9x. This figure sits comfortably below the corporate target, which aims to keep leverage under 3 times.
Chief Executive Marcus Strömberg praised his team for delivering strong results. He noted that the group maintained stable underlying earnings despite operating in a highly uncertain external environment. Strömberg pointed out that the company successfully navigated intense cost pressures while continually adapting to lower inflation levels across Europe.
Looking ahead, AcadeMedia shows no signs of slowing its expansion strategy. After the third quarter closed, the company signed a deal to acquire IVA Business School. Founded in 1930, this Dutch higher education institution will help AcadeMedia secure a stronger foothold in the highly lucrative European adult education market.
Furthermore, the education giant agreed to purchase Prolympia, a prominent Swedish school group. Prolympia currently operates ten separate school units and serves roughly 4,400 students. The Swedish group generated a net revenue of SEK 608 million during the 2024/25 academic year. These new assets will likely drive even higher revenue for AcadeMedia in the upcoming quarters.
