• Challenging year for early education sector due to cost of living, work-from-home trends, and reduced birth rates
• Expects Service EBITDA of $28.5-$30m and Group EBITDA of $16.5-$18m for 2025
• Committed to incubation growth strategy, with 10 new services expected to open in 2025

Nido Education Limited (ASX: NDO) has provided a business update, noting that 2025 continues to be a challenging year for the early education sector. Factors such as cost of living, working from home, reduced birth rates over the past 4 years, and changes to school intake are creating strong sector headwinds, although recent data suggests births are increasing. For the year ending December 2025, Nido expects Service EBITDA to be in the range of $28.5-$30m, and Group EBITDA to be $16.5 to $18m. Nido remains committed to its existing incubation growth strategy, with the goal to acquire 100 Services from incubation over a 5 to 6 year period. Since listing in October 2023, new Service openings, trade up, and acquisitions have been impacted by the macro-economic cyclical issues affecting the sector. Key incubator highlights include 7 Services opened in 2024, 10 expected to open in 2025 (5 opened YTD and 5 more expected to receive licensing approval by the end of the year), and 5 incubated Services acquired since listing, with 16 trading Services currently in the incubator.The company notes that the sector is critical to Australian society, educating and caring for children, allowing families to participate in work or study, and growing and maintaining the tax base. The Federal Government has acknowledged the importance of investing in early education and is expected to make further policy announcements in 2026 to increase participation in early education.

Nido expects Service EBITDA for the year ending December 2025 to be in the range of $28.5-$30m. Group EBITDA for the same period is expected to be $16.5 to $18m.

Nido remains committed to its existing incubation growth strategy, with the goal to acquire 100 Services from incubation over a 5 to 6 year period. The company is actively considering opportunities to capitalize on the decline in the number of acquirers of existing profitable childcare services.