Pearson PLC (LSE:PSON) said it ended 2025 with accelerating growth and reiterated its medium-term outlook, pointing to a strong final quarter and steady progress across all of its businesses.
The education group said underlying sales growth reached 8% in the fourth quarter, double the pace seen across the full year, as demand improved in several divisions and new partnerships began to contribute. For 2025 as a whole, underlying group sales rose 4%, in line with guidance.
Adjusted operating profit for the year is expected to come in between £610 million and £615 million, up about 6% on an underlying basis. The figure is calculated before one-off items and currency effects, and is the company’s main measure of day-to-day profitability.
Pearson also reported strong cash generation, with free cash flow conversion of more than 95%. This means that the vast majority of profits were turned into cash, supporting a robust balance sheet.
Net debt stood at about £1.1 billion at the year-end, and the company also recovered £100 million relating to a State Aid tax repayment.
Omar Abbosh, Pearson’s chief executive, said the group had delivered against both its financial and strategic priorities. “We enter 2026 with momentum, are excited about the opportunities that lie ahead, and remain well positioned to deliver value to our stakeholders,” he said.
The strong finish was broad-based. In Assessment and Qualifications, sales rose 4% for the year, with growth accelerating to 8% in the fourth quarter.
Pearson Professional Assessments won new contracts and retained customers, while US Student Assessment returned to growth later in the year, although the loss of a New Jersey contract is expected to weigh on the first half of 2026.
Virtual Learning was one of the fastest-growing areas, with sales up 8% for the year and 20% in the final quarter, helped by higher enrolments and favourable funding. Higher Education sales increased 2% overall, with US growth offset by weaker conditions in some international markets.
Enterprise Learning and Skills sales grew 6% for the year and 13% in the fourth quarter, supported by vocational qualifications and new enterprise solutions.
During the period, Pearson announced partnerships with Microsoft and IBM, and said its test delivery arm had been selected to deliver certifications for Google Cloud.
Looking ahead, Pearson left its medium-term outlook unchanged. Beyond 2025, it expects mid-single digit annual sales growth, steady margin improvement of about 40 basis points a year, and free cash flow conversion averaging between 90% and 100%.
Full-year results will be published on 27 February, when the company will also set out its detailed outlook for 2026.