IDP Education rockets as FY25 result outstrips forecasts
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More news: IDP Education led ASX 200 gains in morning trade after the education services group reported a slide in full-year profit, but saw revenue and dividends top market estimates.
Shares were up 27.1% to $5.77 at 11:10am AEST. The stock is down 62.8% over the last year.
What they said: "IDP delivered a better revenue and cash outcome than expected," said ECP Asset Management investments partner Sam Byrnes.
"While the short term outlook remains challenging, IDP is demonstrating strong cost control that positions it well as conditions start to normalise."
IDP Education posts 58% drop in adjusted profit as student placements tumble
The news: Education services company IDP reported a 58% slide in adjusted net profit to $64.7 million for the 2025 financial year, as student placement volumes declined 29% year on year.
The numbers: The result was down from $154.3 million last year and below the $68.2 million expected by analysts.
Revenue fell 15% year on year to $882.2 million, ahead of consensus estimates of $864.5 million.
Adjusted earnings before interest and tax (EBIT) fell 48% to $119 million, within its $115-125 million guidance range, which was downgraded in June. The company is targeting the same guidance range for FY26, with the expectation that market volumes will fall 20-30% compared to FY25.
IDP declared a final dividend of 5 cents per share, down from last year's payout of 9 cents per share. Analysts had expected a final dividend of 1 cent per share.
The context: IDP — which delivers international student placements and co-owns the English language test IELTS — said policy restrictions across its four key destination markets continue to disrupt student and test taker volumes.
The company has started a multi-year transformation program, aiming to deliver $25 million in its cost base in FY26, with one-off restructuring costs of $35-45 million.
In FY26, it aims to reset the group's cost base, simplify its operating model, reduce vendor spend and accelerate AI adoption to drive productivity.
What they said: "The growth drivers that underpin the international education market's long-term growth trajectory have not changed," said CEO and managing director Tennealle O'Shannessy.
"Our market leading position, clear strategy, expert team and transformation program make IDP well positioned to capture profitable growth."
The sources: ASX, ECP Asset Management research
