• Challenging macroeconomic environment impacting occupancy
• Seasonal occupancy increase in October did not occur
• Revised full year earnings forecast range of $91m to $98m

G8 Education Limited (ASX:GEM) has provided a trading update for FY25, noting that the challenging macroeconomic environment and ongoing cost of living pressures have continued to impact occupancy levels. In its H1 2025 results announcement, the company had noted that occupancy for the first half of the year was lower than the prior comparable period, with spot occupancy at 67.0% (5.9% lower than pcp) and YTD occupancy at 65% (4.1% lower than pcp). At the time, the company had expected its full year earnings results (EBIT lease adjusted) to be similar to CY24. However, since the H1 2025 results announcement, the operating environment has remained challenging, with families continuing to face cost of living pressures, lower enquiry levels compared to last year, and ongoing sector-wide challenges. As a result, the expected seasonal increase in occupancy in October did not occur. As at 2 November 2025, the Group's 'spot' occupancy was 68.3% (6.6% pts lower than pcp), and 65.7% YTD (4.5% pts lower than pcp). Given the subdued levels of occupancy, the ongoing need for the Group to invest in response to changes in the regulatory environment and operational settings, as well as participation of the Group in the Government inquiries, the company is revising its forecasted full year earnings to be in the range of $91m to $98m.

The company is revising its forecasted full year earnings to be in the range of $91m to $98m.

The company remains focused on optimising the current 'enrolment and transition period', as it and its families look forward to 2026. The company also anticipates that the abolition of the activity test for three days of care will increase demand in 2026 across the sector.