G8 Education (ASX:GEM) has issued a market update, announcing an anticipated $350 million non-cash goodwill impairment charge for the 2025 financial year.
The write-down, triggered by an annual review under accounting standard AASB136, stems from a challenging cocktail of lower occupancy rates, rising wage costs, and increased regulatory compliance burdens.
In a move to preserve capital, the board has confirmed that no final dividend will be paid for the year ended Dec. 31, 2025, and has indefinitely paused its on-market share buyback program.
Despite the massive impairment, the company maintained its underlying EBIT guidance of $91 million–$98 million, noting that the charge will not impact its lending covenants.
Management cited a need for "greater clarity" on sector conditions before resuming capital returns, with a full financial briefing scheduled for Feb. 23.