How EDU’s Higher Education Surge Could Redefine FY25 Success
EDU Holdings Limited anticipates FY25 financial results near the top of its guidance, driven by strong revenue and profit growth from its higher education arm, Ikon Institute.
- Revenue expected to nearly double to around $81 million
- EBITDA projected to increase over 200% to about $24.85 million
- Net profit after tax forecast to rise more than fivefold to approximately $14.35 million
- Ikon Institute’s expansion into postgraduate courses fuels growth
- Vocational education segment faces enrolment softness but remains strategically important
Strong Financial Momentum
EDU Holdings Limited is set to report a standout financial year for FY25, with results expected towards the top end of its guidance range. The company projects revenue between $80.4 million and $82.4 million, nearly doubling from $42.3 million in FY24. Earnings before interest, tax, depreciation, and amortisation (EBITDA) are forecast to soar by over 200%, reaching between $24.1 million and $25.6 million. Net profit after tax (NPAT) is expected to climb more than fivefold, landing between $13.6 million and $15.1 million.
Ikon Institute Drives Growth
The primary engine behind this impressive growth is EDU’s higher education division, Ikon Institute. The business expanded its footprint in the postgraduate market during 2025, launching four new courses that accounted for 17% of enrolments in the third trimester. This strategic move has significantly boosted operating earnings, positioning Ikon as the dominant contributor to the group’s financial performance.
Looking ahead, Ikon plans to introduce two additional courses in the first trimester of 2026, targeting both domestic and international students. With an average course duration of approximately three years, the institute’s enrolment growth is expected to have a compounding positive effect on EDU’s financial outlook.
Challenges in Vocational Education
While Ikon’s expansion paints a positive picture, EDU’s vocational education arm, Australian Learning Group (ALG), continues to face headwinds. Enrolments have softened amid challenging conditions in the vocational education and training (VET) sector, including into early 2026. Despite this softness, ALG remains strategically important for EDU, supporting student diversity and providing pathways into Ikon’s higher education offerings.
Positioned for Regulatory Shifts
EDU’s diversified student base, expanded course portfolio, and multiple recruitment channels, combined with a strong balance sheet, equip the company to navigate forthcoming regulatory changes in the international education sector. CEO Adam Davis emphasised the company’s readiness to adapt, highlighting the strategic importance of both its higher education and vocational segments in maintaining resilience.
The company is scheduled to release its full FY25 financial results around 26 February 2026, which will provide a clearer picture of how these dynamics have translated into actual performance.
Bottom Line?
EDU’s strong FY25 performance sets the stage for a pivotal 2026 amid sector challenges and regulatory shifts.
Questions in the middle?
- How will EDU manage enrolment softness in its vocational education segment moving forward?
- What impact will upcoming regulatory changes have on EDU’s international student recruitment?
- Can Ikon Institute sustain its postgraduate growth momentum into the longer term?
