Shares in G8 Education (ASX:GEM) experienced a significant drop, plunging 13.7 per cent by 11:20 am AEDT on Tuesday, following a negative trading update. The company, which operates childcare centres across Australia and Singapore, has revised its full-year 2025 earnings guidance downwards.
According to RBC Capital Markets analyst Wei-Weng Chen, G8 Education now anticipates earnings to be in the range of $91 million to $98 million. This figure falls considerably short of the prior guidance of approximately $115 million and the consensus estimate of $110.9 million. The downgrade reflects the impact of ongoing cost-of-living pressures faced by families, resulting in weaker inquiry volumes, as well as increased costs associated with regulatory changes within the sector.
The company’s spot occupancy rate as of November 2 stood at 68.3 per cent, a decrease of 6.6 percentage points compared to the same period last year. Year-to-date occupancy also declined, reaching 65.7 per cent, which is below the levels recorded in the previous year. G8 Education provides early childhood education and care services, operating a network of centres focused on delivering quality educational programs.
