G8 Education

(AI video summary)

This video was created on 4 November 2025 for IG audiences by ausbiz.

ASX code: GEM

G8 Education forecasts flat 2025 earnings as occupancy falls

G8 Education expects 2025 earnings to remain steady after childcare occupancy failed to recover as forecast.

Occupancy in early November was more than 6.5% lower than a year earlier, with affordability and cost-of-living pressures continuing to affect families. Earnings are projected between $91 million and $98 million, broadly in line with last year’s results.

Sector challenges

Analysts note that the childcare sector faces structural challenges, including low wages, regulatory burdens, and reliance on government support. Such dependence leaves providers exposed to fiscal tightening.

Smaller operators often outperform by owning their properties and reinvesting profits locally, while G8 Education’s scale makes it more vulnerable to occupancy and cost pressures.

Investment outlook

Although G8 Education’s lower share price has lifted its  dividend yield, analysts said risks outweigh potential returns, describing the stock as a ‘painful hold’.