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Highlights

  • IEL’s gross operating cash flow conversion rose 18 percentage points to 64% of reported EBITDA in H1FY25.
  • Cash and cash equivalents at the end of the year rose 22% YoY to AUD 156.9M.
  • IEL expects FY25 volume decline but aims to outperform market via fee growth and portfolio strength.

IDP Education Limited (ASX:IEL) is an ASX-listed company engaged in the placement of international students into educational institutions.

In the first half of the financial year 2025 (H1FY25), IEL reported total revenue of AUD 475.40 million, down 17.91% YoY from AUD 579.10 million in 1HFY24, primarily due to lower volumes in Student Placement and English Language Testing, though partially offset by average price increases. Direct costs declined 9% YoY in H1FY25 due to disciplined cost control and a shift in source country mix.   Overhead costs for the period decreased by 14% YoY driven by reduced staff and discretionary spending.

Cash and cash equivalents at the end of the period rose 21.94% YoY to AUD 156.91 million, compared to AUD 128.68 million a year earlier. Gross operating cash flow conversion improved by 18 percentage points, reaching 64% of reported EBITDA.

Business Update

IEL announced that Mitsubishi UFJ Financial Group, Inc. became a substantial shareholder with a 5.02% stake in the company as of 25 July 2025.

Company Outlook

IEL expects a decline in volumes across its core business lines in FY25 but aims to outperform the broader market by leveraging its diversified portfolio and operational resilience. The company’s growth in average fees and disciplined cost control are helping offset the impact of softer volumes.

IEL expects 2HFY25 overheads to remain broadly in line with 2HFY24, assuming stable market conditions.

Share performance of IEL

IEL shares declined by 0.23% to close at AUD 4.380 per share on 7 August 2025. The stock has fallen significantly over the past year, down 67.53%, and remains 65.32% lower year-to-date. Over the past nine months, it has declined 68.60%, while the six-month and three-month returns stand at -64.07% and -54.28%, respectively.

The 52-week high for IEL is AUD 17.10, recorded on 27 August 2024, while the 52-week low is AUD 3.405, reached on 5 June 2025.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 07 August 2025. The reference data in this report has been partly sourced from EODHD/Others.

 

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.