EDU Faces Mixed Enrolment Signals Amid Regulatory Shifts and Sector Softness

Mixed Enrolment Trends Reflect Sector Challenges

EDU Holdings Limited has revealed a nuanced picture in its latest enrolment figures for Term 4, 2025. The company’s Vocational Education and Training (VET) division, Australian Learning Group (ALG), saw new student enrolments rise by 26% compared to the previous term, a notable rebound amid ongoing softness in the VET sector. However, when compared to the same period last year, new enrolments fell sharply by 43%, highlighting persistent headwinds.

Total student enrolments for the term declined 4% from the prior term and 11% from the prior corresponding period, yet the year-to-date figures show an 11% increase over 2024. This suggests that while short-term fluctuations remain, EDU is making steady progress overall.

ALG’s Strategic Role Within EDU Holdings

Although ALG now constitutes a smaller share of EDU’s overall business, due to the rapid expansion of its higher education arm, Ikon Institute, it continues to play a vital role. The VET business remains profitable, contributes to shared service costs, and importantly, enhances the diversity of EDU’s student base. ALG also serves as a critical pathway for students aiming to transition into higher education at Ikon, particularly for those who do not meet direct entry requirements.

Regulatory Developments Offer Sector Optimism

On the regulatory front, EDU welcomed the recent introduction of the Education Legislation Amendment (Integrity and Other Measures) Bill 2025. This legislation replaces a previously lapsed bill and notably removes enrolment caps, a move broadly seen as positive for the education sector. EDU’s management has emphasized ongoing vigilance in monitoring policy changes to ensure the group remains well-positioned amid evolving regulatory landscapes.

These regulatory shifts could provide a more flexible environment for EDU and its peers to pursue growth strategies without the constraints of enrolment limits, potentially benefiting future terms.

Looking Ahead

While the mixed enrolment figures underscore the challenges facing the VET sector, EDU’s diversified approach, with a growing higher education business and a profitable VET arm, positions it to navigate these complexities. The company’s ability to leverage pathways between its education offerings and adapt to regulatory changes will be key to sustaining momentum.