Pearson (PSON) Q4 2025 TU earnings summary

Executive summary

• Achieved underlying group sales growth of 4% for the full year 2025, with Q4 accelerating to 8% growth.

• Adjusted operating profit reached £610-615m, up approximately 6% year-over-year on an underlying basis.

• All business units contributed to growth, supported by strategic partnerships and AI-driven product launches.

Financial highlights

• Free cash flow conversion exceeded 95%, with net debt around £1.1bn and a £0.1bn State Aid repayment.

• Group adjusted operating profit increased by about 6% year-over-year.

Outlook and guidance

• Medium-term outlook targets mid-single digit underlying sales growth CAGR and average margin improvement of 40 basis points per annum.

• Free cash flow conversion expected to remain strong, averaging 90% to 100% over the period.

• Full year results for 2025 will be announced on 27 February 2026, with 2026 outlook to be provided.