Company Expects Sales Growth to Rebound in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2026
0mins
Should l Buy PSO?
The company expects, "Assessment & Qualifications: Low to mid-single digit underlying sales growth, driven by new contracts, products and pricing. Returning to growth from Q2, supported by new business and recently awarded contracts. Virtual Learning: Stronger growth than 2025, particularly in H1, driven by a full year of enrolment growth. Higher Education: Will grow more than 2025, supported by continued product and platform innovation, pricing and Inclusive Access in our core US courseware business, with improvement in the K12 channel. English Language Learning: Higher growth than 2025 driven by market share gains and pricing, with PTE returning to growth. Growth will again be Q4 weighted given the seasonality of the business. Enterprise Learning & Skills: Growth to be driven by a solid performance in Vocational Qualifications and strategic account growth in Enterprise Solutions. Adjusted Operating Profit: GBP 640M-GBP 685M at FX rates as at the end of 2025, which includes lower amortisation in 2026 following the 2025 product development impairment. Interest: Adjusted net finance costs of c.GBP 80M - includes associated costs of funding the GBP 350M share buyback. Tax rate: We expect the effective tax rate on adjusted profit before tax to be c.25%. Cash flow: We expect a free cash flow conversion of 90-100%."
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Analyst Views on PSO
About PSO
Pearson PLC is a learning company with its principal operations in the education, assessment and certifications markets. The Company’s divisions include Assessment & Qualifications, Virtual Learning, Higher Education, English Language Learning and Enterprise Learning & Skills. The Assessment & Qualifications division includes Pearson VUE, US Student Assessment, Clinical Assessment, UK-curriculum-based qualifications, such as GCSEs and A levels, as well as courseware for English-speaking regions throughout the world. The Virtual Learning division includes virtual schools and online program management. The Higher Education includes the United States, Canadian, and International Higher Education Courseware businesses. The English Language Learning division includes Pearson Test of English, Institutional Courseware and English Online Solutions. The Enterprise Learning & Skills division includes Vocational Qualifications and Enterprise Solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sales Growth Outlook: The company anticipates mid-single-digit growth in overall sales, particularly in the Assessment and Qualifications segment, benefiting from new contracts and pricing strategies, highlighting its competitive edge and innovation in the education market.
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- Industry Dynamics Analysis: As a key player in the energy sector, Hawaiian Electric's earnings will reflect the impact of energy demand and price fluctuations on its profitability, providing insights into the sector's health.
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