• Occupancy remained challenged due to ongoing macroeconomic conditions and cost-of-living pressures
• Core business effectively managed with positive momentum in balanced scorecard metrics
• Strong balance sheet with conservative leverage and disciplined capital management

G8 Education Limited (ASX:GEM) has reported a moderate earnings improvement in the first half of calendar year 2025 (CY25 H1), despite challenging trading conditions. Occupancy for the half was lower than the prior corresponding period (pcp), with affordability continuing to impact families. Spot occupancy is trending lower than pcp, but the company has well managed its cost base, with benefits from strategic procurement and further reduction in agency usage. The company has delivered steady performance in a tough market, with continued positive momentum in its controllable balanced scorecard metrics, marking the second consecutive year of sustained improvement. Ensuring the highest standards of safety remains the primary focus, with the company's National Quality Framework (NQF) quality ratings remaining above the sector average. G8 Education has maintained a conservative balance sheet, with strong liquidity and low leverage, and has taken a disciplined approach to capital management, driving long-term shareholder value through consistent dividends and a share buyback program. The company has also continued its network optimisation, divesting 4 centres and surrendering 3 leases.In terms of environmental, social, and governance (ESG) highlights, the company has made progress across various initiatives, including a 5% reduction in Scope 1 and Scope 2 emissions, a 95% hybrid vehicle fleet, and improved team engagement and diversity. The company has also strengthened its focus on safety, with refreshed accountability and consequence frameworks, and continued preparation for AASB S2 climate reporting.Looking ahead, the company remains focused on enhancing its core operations through various strategic initiatives, including improvements to performance monitoring systems, enrolment and transition processes, and a turnaround program for underperforming centres.