Graham Holdings surges as Q2 earnings beat expectations

Published 30/07/2025, 13:58
Graham Holdings surges as Q2 earnings beat expectations

Investing.com -- Graham Holdings Company (NYSE:GHC) reported second-quarter earnings that significantly exceeded analyst expectations, driving shares up 2.1% as investors responded positively to the company’s performance across multiple business segments.

The diversified education and media company posted adjusted earnings per share of $14.33 for the second quarter of 2025, handily beating the analyst estimate of $10.15. Revenue increased 3% to $1.21 billion from $1.18 billion in the same quarter last year, slightly above the consensus estimate of $1.18 billion.

Operating income nearly tripled to $72.8 million compared to $25.9 million in the second quarter of 2024. The company also reported adjusted operating cash flow of $111.3 million, up from $98.5 million in the year-ago period.

"Our education, healthcare and manufacturing segments delivered strong performance this quarter, helping to offset challenges in our television broadcasting and automotive businesses," said a company executive in the earnings release.

The improved results were primarily driven by stronger performance in the company’s education, manufacturing, and healthcare divisions, which helped counterbalance declines in television broadcasting, automotive and other business segments.

During the quarter, Graham Holdings continued to reshape its portfolio, completing the sale of various websites and related businesses that made up its World of Good Brands division. The company expects to substantially shut down all remaining WGB operations by the end of the third quarter of 2025.

In July, the company’s Hoover division acquired Arconic Architectural Products, which manufactures aluminum cladding products. A significant portion of the purchase price was funded by Graham’s assumption of approximately $105 million in net pension obligations.

The company also reported that during the first six months of 2025, it purchased 3,978 shares of its Class B common stock at a cost of $3.5 million, with authorization remaining for 462,482 additional shares as of June 30, 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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