Nido Education Limited reported a 3.8% increase in revenue to $169.9 million for 2025, while earnings and net profit declined. The company declared a fully franked final dividend of 2.2 cents per share, underscoring its commitment to shareholder returns despite challenging market conditions.
- Revenue up 3.8% to $169.9 million
- Adjusted EBITDA down 23.4% to $17.0 million
- Adjusted NPAT declined 43.7% to $11.1 million
- Final fully franked dividend of 2.2 cents per share declared
- Staff retention improved by 23%, with ongoing investment in educator development
Financial Performance Overview
Nido Education Limited (ASX: NDO), a national operator of early childhood education and care services, released its full year results for 2025, reporting a 3.8% increase in revenue to $169.9 million. Despite this top-line growth, the company experienced declines in key profitability metrics, with adjusted EBITDA falling 23.4% to $17.0 million and adjusted net profit after tax (NPAT) dropping 43.7% to $11.1 million.
The statutory net profit after tax was $6.5 million, down 55.7% from the previous year. These results reflect ongoing market challenges and increased operational costs, including wage pressures and compliance investments.
Operational Highlights and Growth Strategy
Nido operates 109 early childhood education services across Australia, including 59 owned and 50 managed centres. The company expanded its portfolio by acquiring three services from incubator partners during the year and opened seven new services in incubation. The total number of children educated across the network reached over 17,000, supported by more than 3,000 staff.
Quality remains a cornerstone of Nido’s offering, with 99% of services rated as meeting or exceeding the National Quality Standard (NQS) for Educational Program and Practice. The company also reported a 23% improvement in staff retention, a significant achievement in a sector facing workforce challenges. Investments in educator development and a refreshed brand message, ‘Every Day Matters,’ underpin Nido’s commitment to delivering consistent, high-quality education and care.
Safety, Governance, and Compliance Focus
In response to heightened sector scrutiny, Nido strengthened its safety and safeguarding practices in 2025. The company implemented a national Child Safe Roadshow, enhanced auditing tools, and delivered over 60,000 training modules focused on safety, governance, and compliance. These measures aim to reassure families and regulators alike, positioning Nido as a leader in child safety within the early education sector.
Capital Management and Dividend Policy
Financially, Nido maintains a solid balance sheet with $28 million drawn from $55 million in loan facilities and net debt of $21.7 million as at year-end. The company is actively negotiating an extension of its loan maturities to ensure ongoing liquidity and operational flexibility.
The Board declared a fully franked final dividend of 2.2 cents per share, payable on 20 March 2026, reflecting confidence in the company’s cash flow generation despite profit pressures. The total dividends for 2025, including the interim dividend, amount to $8.4 million.
Governance and Leadership
The Board remains committed to gender equity, with plans to establish formal targets in 2026. Leadership changes included the appointment of Adam Lai as Chief Executive Officer in February 2025, bringing extensive experience in operational transformation and customer outcomes. Executive remuneration remains closely linked to company performance, with no short-term incentives paid in 2025 due to unmet financial targets.
Looking ahead, Nido anticipates sector improvements driven by government policy changes such as the 3 Day Guarantee and cost-of-living measures, which are expected to enhance childcare accessibility and demand.
Bottom Line?
Nido Education’s 2025 results highlight resilience amid sector challenges, setting the stage for cautious optimism as government reforms take effect.
Questions in the middle?
- How will Nido manage refinancing risks given upcoming loan maturities?
- What impact will government childcare policy changes have on occupancy and profitability in 2026?
- Will the new performance incentive programs for service leadership translate into improved operational outcomes?