SEK –14.31%: delivered decent FY26 numbers, however soft FY27 guidance has overwhelmed the backward-looking numbers, sending shares down as much as 17%. The key disappointment was adjusted profit guidance, with the $200m midpoint around 13% below consensus, as weak employment volumes weighed on earnings.
Key results:
- Net revenue $1.20bn, +10%.
- Earnings (EBITDA) $529.9m, +15%.
- Profit (NPAT) $199.1m, +28%.
- Final dividend 25cps, up from 22cps.
- FY27 profit guidance $185-215m, ~13% below consensus at the midpoint.
The underlying issue is volumes. SEEK expects ANZ revenue growth to be driven by around 10% yield growth rather than improving job-ad volumes, while Asian paid ad volumes remain under pressure after declining 12% in FY26. In other words, pricing remains powerful, but the employment backdrop isn’t providing much help. There is some potential upside from the SEEK Growth Fund, where investments valued above A$1bn could be sold in the near term, including the ongoing divestment of Employment Hero.
MM’s view: This was a classic case of a good result being trumped by a poor outlook. SEEK continues to demonstrate impressive pricing power and FY26 execution was strong, but FY27 guidance implies little earnings growth and has forced the market to reset expectations. A 17% fall feels aggressive, although after the stock’s strong run into the result, we aren’t surprised to see the market punish a material guidance miss.
MM remains neutral toward SEK
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