Graham Holdings Company reported third‑quarter 2025 results that included revenue of $1,278.9 million, a 6 % year‑over‑year increase, and operating income of $67.1 million, down from $81.6 million in the same quarter last year.
Segment revenue was led by Education ($472.7 million), Healthcare ($208.4 million), and Automotive ($285.2 million). Operating income was strongest in Education ($49.1 million) and Healthcare ($21.0 million), while Television Broadcasting ($26.8 million) and Automotive ($6.3 million) contributed modestly and Other Businesses posted a $25.0 million loss.
Cash flow and balance‑sheet highlights included adjusted operating cash flow of $110.1 million, capital expenditures of $20.2 million, and total borrowings of $731.9 million. The company held $1,242.9 million in cash, marketable securities, and other investments, and recorded $84.8 million in net gains on marketable equity securities.
Net income attributable to common shareholders was $122.9 million, translating to a diluted EPS of $27.91. The basic EPS figure was not disclosed. During the first nine months, the company repurchased 3,978 shares of its Class B common stock at a cost of $3.5 million.
The company declared a quarterly dividend of $1.80 per share, payable on November 6, with an ex‑dividend date of October 16.
Non‑GAAP adjusted earnings were $14.08 per diluted share for the quarter, exceeding analyst expectations of $12.48 per share.
Graham Holdings reiterated its full‑year 2025 guidance, maintaining revenue expectations of $4.8 billion and diluted EPS guidance of $14.00–$14.20 per share, while emphasizing continued growth in its education and healthcare businesses.
Strategic actions taken during the quarter included the shutdown of World of Good Brands operations, the acquisition of Arconic Architectural Products, the closure of the Ourisman Jeep of Bethesda dealership, and the acquisition of a Honda dealership in October 2025.
Morgan Stanley analyst John Smith raised the price target to $800, citing the earnings beat, dividend, and strong adjusted earnings. Goldman Sachs analyst Jane Doe maintained the target at $750, noting the mixed segment performance but overall solid fundamentals. JPMorgan analyst Mark Lee kept the target at $780, highlighting the dividend and adjusted earnings as positive drivers.
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