Q4 2026 Scholastic Corp Earnings Call Transcript
Key Points
- Scholastic Corp (SCHL) achieved a 32% increase in adjusted operating income for fiscal 2026, demonstrating strong operating leverage.
- The company successfully executed sale-leaseback transactions, unlocking over $400 million in net proceeds, which were used to enhance shareholder returns.
- Book Fairs continued to perform well, with a 5% revenue increase driven by higher fair count and improved revenue per fair.
- Scholastic Corp (SCHL) announced a 25% increase in its regular dividend, reflecting confidence in long-term cash generation.
- The Entertainment division saw a 42% increase in fourth-quarter revenues, driven by higher production revenues and a growing slate of projects.
- Fiscal 2026 revenue decreased by 3%, with challenges in the Education segment due to funding volatility and lower district spending.
- The Trade Publishing division experienced a 20% revenue decline in the fourth quarter, impacted by challenging prior-year comparisons.
- Education segment revenues decreased by 14% for the full year, reflecting ongoing funding volatility and pressure on supplemental curriculum spending.
- International segment revenues declined, partly due to lower trade revenues and challenging prior-year comparisons.
- Adjusted operating income in the fourth quarter decreased by $1.2 million on a comparable basis, reflecting lower results in Education and International segments.
Good day, and thank you for standing by. Welcome to the Scholastic reports fourth-quarter fiscal year 2026 results. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Jeffrey Mathews, Executive Vice President, Chief Growth Officer and President, Scholastic Education. Please go ahead, sir.
Hello, and welcome, everyone, to Scholastic's fiscal 2026 fourth-quarter earnings call. Today on the call, I'm joined by Peter Warwick, our President and Chief Executive Officer; and Haji Glover, our Chief Financial Officer. As usual, we posted the companion investor presentation on our IR website at investor.scholastic.com, which you may download now if you've not already done so.
We would like to point out that certain statements made today will be forward-looking. These forward-looking statements, by their nature, are subject to various risks
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