McGraw Hill Q4 Earnings Call Highlights

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Thu, June 11, 2026 astatine 10:02 AM CDT 7 min read

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McGraw Hill bushed fiscal 2026 expectations, reporting $2.1 cardinal successful gross and $744 cardinal successful adjusted EBITDA, portion recurring gross roseate astir 6% and EBITDA margins expanded to 35.4%. The institution besides reduced gross indebtedness by $646 cardinal and ended the twelvemonth with $704 cardinal successful full liquidity.
Higher acquisition was the standout segment, with gross up 12% to $879 cardinal and recurring gross up 10% to $734 million, helping offset a 9% diminution successful K-12 revenue. Executives highlighted continued stock gains successful higher acquisition and a beardown AI- and digital-learning strategy.
Fiscal 2027 guidance calls for humble maturation and continued borderline expansion, with gross projected astatine $2.115 cardinal to $2.175 cardinal and adjusted EBITDA of $750 cardinal to $790 million. The institution besides authorized a $50 cardinal stock repurchase program and expects higher escaped currency flow.

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McGraw Hill (NYSE:MH) reported fiscal 2026 results supra its anterior expectations and issued fiscal 2027 guidance calling for humble gross growth, higher recurring gross and continued borderline expansion, arsenic executives emphasized maturation successful higher education, artificial intelligence-enabled products and an approaching K-12 literacy program cycle.

On the company’s net telephone for the fiscal 4th fourth and twelvemonth ended March 31, 2026, Chair Simon Allen said the twelvemonth “demonstrated the spot of our business, our strategy, and the enduring value of education,” adding that the institution made “significant strides successful AI-powered innovation.” Allen besides expressed assurance successful President and Chief Executive Officer Philip Moyer, who has been successful the relation for astir 120 days.

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Moyer said McGraw Hill exceeded its IPO expectations for gross and adjusted EBITDA successful fiscal 2026, portion recurring gross grew 6% and represented much than 73% of full revenue. He said the company’s absorption for shareholders is to “maintain our nett profile, trim our debt, and accelerate our maturation successful fiscal twelvemonth 2027 and beyond.”

Fiscal 2026 Results Top Guidance

Executive Vice President and Chief Financial Officer Bob Sallmann said fiscal 2026 gross was $2.1 billion, supra the precocious extremity of the company’s guided scope and $2 cardinal supra the anterior year. Recurring gross reached $1.5 billion, up astir 6% twelvemonth implicit year, portion adjusted EBITDA roseate 2% to $744 million. Adjusted EBITDA borderline expanded astir 80 ground points to 35.4%.

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