IDP Education (IEL) Investor Update summary

Market conditions and regulatory environment

• Key destination markets face synchronized and ongoing policy uncertainty, reducing global international student flows and market size.

• UK, Australia, Canada, and US have introduced or maintained restrictive immigration and student visa policies, with further changes pending and stricter requirements impacting student flows.

• Visa issuance and international student market volumes for FY25 Q3 YTD are down 28%, with Canada and the US seeing the sharpest declines and further deterioration expected.

• Economic and geopolitical uncertainty has increased, compounding the impact of policy changes.

• Short-term market contraction is driven by policy changes, but long-term fundamentals remain strong due to demographic and economic trends.

Financial performance and guidance

• Student placement volumes for FY2025 are expected to decline by 28%-30%, and Language Testing/IELTS volumes by 18%-20%, partially offset by strong average fee growth.

• FY2025 earnings (EBIT) are forecast between $115 million and $125 million, with cost control initiatives partially offsetting revenue declines.

• Adjusted overhead costs for H2 FY2025 are expected to be around 5% below H2 FY2024.

• Gross margins are expected to be slightly lower than FY2024 due to volume declines and mix effects.

• CapEx has been reduced by about a third versus initial expectations, focusing on high-impact investments.

Strategic priorities and cost management

• Strategic reviews of cost, productivity, investment, and commercial levers are underway, with updates planned for August 2025.

• Focus areas include growing market share, disciplined cost management, and prioritizing investment spend, especially in digital and AI-enabled product development.

• Strengthened cost reduction actions target headcount, discretionary spend, automation, and back-office simplification.

• The business aims to be positioned for profit growth outpacing sales when market conditions improve.

• Maintains a robust balance sheet and remains confident in long-term industry growth drivers despite short-term challenges.