McGraw Hill Reports FY2026 Profit Turnaround, Strong FY2027 Guidance, and $50M Share Repurchase
MH sits 18% above its 52-week low of $10.695.
Summary
McGraw Hill, Inc. announced a return to profitability in fiscal year 2026, provided strong guidance for fiscal year 2027, and initiated a $50 million share repurchase plan.
Key Events · Earnings and Guidance · MH
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Return to Profitability
Achieved GAAP net income of $35.3 million for fiscal year 2026, a significant turnaround from a net loss of $(85.8) million in the prior year.
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Strong FY2027 Guidance
Projected fiscal year 2027 revenue between $2,115 million and $2,175 million, with Adjusted EBITDA between $750 million and $790 million, indicating continued growth and accelerating profitability.
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$50 Million Share Repurchase Plan
The Board of Directors approved a new share repurchase plan for up to $50 million of common stock, representing approximately 2.08% of the current market capitalization.
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Exceeded Q4 Revenue Estimates
Reported Q4 2026 revenue of $463.7 million, surpassing analyst estimates of $439.94 million.
Analysis · MH · Manufacturing
McGraw Hill, Inc. reported a significant financial turnaround in fiscal year 2026, moving from a net loss to a net income of $35.3 million, exceeding revenue estimates. The company also provided optimistic guidance for fiscal year 2027, projecting continued revenue growth and increased profitability. Additionally, the board approved a new $50 million share repurchase program, signaling confidence in future performance and a commitment to returning value to shareholders.
At the time of this filing, MH was trading at $12.59 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $10.70 to $18.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.