IDP Education (IEL) H2 2025 earnings summary

Executive summary

• FY25 revenue declined 14% to $882m, outperforming industry volume trends despite challenging market conditions.

• Student Placement volumes fell 29% year-over-year, with significant declines in Canada, Australia, and the USA, but average price per placement rose 15%.

• Disciplined cost control led to direct costs down 6% and overheads down 5%, with headcount reduced by ~660.

• Adjusted EBIT dropped 48% to $119m, and Adjusted NPAT fell 55% to $64.7m, reflecting negative operating leverage.

• Strong balance sheet maintained with net leverage at 1.4x and cash conversion improved to 143%.

Financial highlights

• Revenue: $882.2m, down 14% year-over-year; gross profit margin decreased to 60% from 64%.

• Adjusted EBIT: $119.0m, down 48%; Adjusted NPAT: $64.7m, down 55%.

• EBITDA: $153.5m, down 42%; EPS (basic): 16.0c, down 67%.

• Cash conversion ratio improved to 143% from 80% in FY24.

• Final dividend declared at 5.0 cents per share.

Outlook and guidance

• FY26 Adjusted EBIT expected between $115m–$125m, assuming market volumes decline 20–30% from FY25.

• Transformation program to deliver $25m net reduction in cost base in FY26, weighted to H2.

• Student Placement average prices projected to grow high single to low double digits; English Language Testing prices to grow mid-single digits.