How Investors Are Reacting To SEEK (ASX:SEK) Returning to Profit With a Higher Dividend and Strong Outlook

• SEEK Limited reported a return to profitability with full-year net income of A$245.2 million, announced a 31% increase in its fully franked dividend to 46 cents per share for fiscal 2025, and provided financial guidance for fiscal 2026, expecting net revenue between A$1.15 billion and A$1.25 billion with EBITDA of A$510 million to A$550 million.
• For the first time in two years, SEEK’s net income shifted from a loss to a profit, driven by higher sales and disciplined capital expenditure.
• We'll assess how SEEK's strong earnings recovery and substantial dividend increase may influence its future investment narrative.

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SEEK Investment Narrative Recap

To be a shareholder in SEEK, you need to believe in the sustained digitisation of recruitment and SEEK’s ability to monetise its scale and technology leadership across diverse regions. The company's return to profitability and guidance for fiscal 2026 offer reassurance to those focused on earnings momentum, but with job ad volumes holding flat in Australia and New Zealand, the most important short term catalyst remains a recovery in ad demand, while revenue concentration and competition pose ongoing risks. These results reinforce SEEK’s operational resilience, but unless volume growth improves, the impact on future earnings could be limited.

The announcement of a 31% increase in SEEK’s fully franked dividend to A$0.46 per share stands out, underscoring management’s confidence in the company’s balance sheet and earnings rebound. This may lift SEEK’s appeal to income-focused shareholders, yet the catalyst for broader share price upside is still tied to a recovery in ad volumes, especially in the core Australian and New Zealand markets.

However, investors should be aware that, despite these strong numbers, ongoing economic weakness or competitive pressures could force SEEK to rely even more heavily on...

Read the full narrative on SEEK (it's free!)

SEEK's narrative projects A$1.5 billion revenue and A$330.8 million earnings by 2028. This requires 11.2% yearly revenue growth and an earnings increase of about A$92.5 million from A$238.3 million.

Uncover how SEEK's forecasts yield a A$30.28 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Four independent fair value estimates from the Simply Wall St Community span from A$11.57 up to more than A$1,441,330.09 per share. While many anticipate benefits from SEEK's digital platform and product innovation, diverging views highlight how expectations for revenue recovery can dramatically reshape outlooks for the stock's future.

Explore 4 other fair value estimates on SEEK - why the stock might be a potential multi-bagger!

Build Your Own SEEK Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SEEK research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free SEEK research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SEEK's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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