Pearson (NYSE:PSO) reported a robust set of full-year 2025 results on Friday, characterized by steady organic growth and an aggressive return of capital to shareholders.
The London-based education and publishing group posted underlying sales of £3,577 million, a 4% increase compared to the previous year.
Adjusted operating profit rose 6% on an underlying basis to £614 million, pushing the company’s operating margin to 17.2%.
The performance was underpinned by strong cash generation, with free cash flow rising 8% to reflect a cash conversion rate of 125%.
Buoyed by this liquidity, Pearson completed a £350 million share buyback in 2025 and immediately initiated a subsequent £350 million program in January 2026, demonstrating management's confidence in the company’s digital transformation.
While adjusted metrics showed growth, statutory operating profit fell to £507 million.
This decline was primarily attributed to a £87 million non-cash impairment charge related to product development as the company accelerates its move away from legacy offerings toward AI-enhanced learning tools.