Pearson Interim Results H1 2025: Sales up 2%, Adjusted Operating Profit up 2%, and Strong Free Cash Flow.

Pearson reported H1 2025 interim results with group sales up 2% to £1.72bn. Adjusted operating profit rose 2% to £242m, while free cash flow increased by £129m to £156m. The company is on track to deliver 2025 guidance with stronger growth expected in H2. Pearson has made significant progress with its AI transformation agenda, enterprise business, and product suite development, positioning it for consistent mid-single digit sales growth over the medium term.

London, Aug. 1, 2025 — Pearson (LONDON: PRN) today released its H1 2025 interim results, showcasing continued strategic and operational progress. The company reported group sales up 2% to £1.72bn, with adjusted operating profit rising 2% to £242m. Free cash flow increased by £129m to £156m, reflecting strong performance across various business units.

Pearson's Chief Executive, Omar Abbosh, commented, "We are on track to deliver the three priorities we set out for the year, with performance to date in line with our expectations, and are confident of stronger growth in the second half. We are making rapid progress with bringing AI-powered products to market and are scaling and enhancing our enterprise business with a range of new partnerships and deals."

Key highlights of the interim results include:

- Sales Growth: Group sales increased by 2%, driven by underlying performance across all business units. Assessment & Qualifications, Higher Education, and Enterprise Learning & Skills all reported growth, while Virtual Learning and English Language Learning saw decreases.
- Operating Profit: Adjusted operating profit rose 2% to £242m, driven by operating leverage on sales growth and gains on disposals. The effective tax rate increased to 24.5%.
- Free Cash Flow: Free cash flow improved by £129m to £156m, benefiting from the receipt of £114m State Aid tax recovery.
- Balance Sheet Strength: Net debt decreased £0.2bn to £1.0bn, reflecting strong cash performance and share buybacks. The company secured a new three-year, $800m revolving credit facility.

Pearson's strategic partnerships and product developments have been pivotal in driving growth. The company has formed strategic alliances with Microsoft, AWS, and Google Cloud, and continues to innovate with AI-powered tools and new product features. The acquisition of eDynamic Learning and partnerships with McGraw Hill and HCLTech have also positioned Pearson for growth in adjacent markets.

Looking ahead, Pearson reaffirms its 2025 guidance, expecting stronger sales growth in H2. The company is well-positioned to deliver consistent mid-single digit sales growth over the medium term, driven by its focus on execution, innovation, and strategic partnerships.

References:
[1] https://www.prnewswire.com/news-releases/pearson-interim-results-for-the-six-months-to-30th-june-2025-unaudited-302519240.html