After a year of controversial cost-saving strategies, the University of Newcastle has recorded a more than $15 million surplus in its core operating result.
In an email to staff, vice-chancellor Alex Zelinsky acknowledged it had been a "difficult year" as the university implemented its business improvement project, which saw job and course restructures.
The 2025 annual report showed a $112.5 million surplus in the university's consolidated operating result, which includes its controlled entities such as Newcastle University Sport.
Its adjusted operating result, which excludes restricted funds such as philanthropic donations and research grants, showed a $15.4 million surplus, up from a $16.3 million deficit in 2024.
The report said it was the university's first core operating surplus since 2021.
Last year's adjusted deficit figure underpinned changes across the university to save more than $20 million.
The university attributed the change to focused cost management and growth in international student revenue but Australia Institute chief executive Richard Denniss was not convinced.
Dr Denniss has previously criticised the university's claim it was in a deficit based on its adjusted operating results, accusing it of excluding one-off revenue but not expenses.
It was a claim that then university chief financial officer Paul McCubbin and Professor Zelinsky labelled as incorrect at the state inquiry hearing into universities.
"It is good that the university is no longer pretending that it is in a financial crisis, but to be clear, its audited accounts show that it never was," Dr Denniss said.
Dr Denniss was referring to his analysis of the university's finances in 2024 which showed net assets of more than $1.8 billion and a consolidated surplus of $61.3 million.
This year's adjusted result had included a line for expenses called "abnormal costs" which Dr Denniss said suggested a significant change to how the university was reporting its financials.
"The university has not come and said it made a mistake last year," he said.
Professor Zelinsky, however, said the reason there were no abnormal costs factored in the 2024 report was that there weren't any.
In 2025, the $16.3 million in abnormal costs related primarily to one-off expenses from the business improvement program and demolition costs, he said.
Professor Zelinsky has previously rejected the suggestion the university was running a fake deficit in order to justify job cuts.
The highest commencing load of international students in the university's history saw international student revenue grow by 40 per cent, with total revenue passing $115 million after accounting for fee scholarships.
The casual academic full-time-equivalent workforce dropped 50 per cent from about 230 in 2024 to 114 in 2025, which Professor Zelinsky said was due to the business improvement program and changes to federal employment legislation.
Redundancy payouts also significantly increased from 2024, hitting more than $7.7 million in 2025, which the university attributed to voluntary redundancies last year and staff redeployment into 2026.
The total number of academic and professional staff slightly dipped from 3216 to 3203.
Professor Zelinsky said more than 500 casual academic and professional staff were appointed to fixed-term and continuing roles last year.
National Tertiary Education Union Newcastle representative Terry Summers said it was good the university was strong financially, but he wasn't surprised by the results.
"The university's making a very healthy surplus, and it's making it at the expense of the staff," he said.
"We always knew that the university was in good financial shape," he said.
Dr Summers said he wanted the university to focus more on other outcomes rather than just financial sustainability.
He pointed to the increase in student-to-staff ratio from 24.1:1 to 25.5:1, above the sector benchmark of 22.1.
"It doesn't seem like a lot but that effectively means that the staff are working harder to teach, and that shows up in the fact that there's less staff, effectively," he said.
A national NTEU survey of 4000 university staff found that tutorials with 30 or more students had more than doubled since 2019.
Dr Summers said he was also concerned about the decrease in research income by nine per cent and the work health and safety results.
Professor Zelinsky said fluctuations in research income over the past five years reflect the timing of major funding payments and the distribution of funds to collaborating parties.
Work health and safety events categorised as hazards, near misses or incidents rose from 877 in 2024 to 939 in 2025, with 11 reports made to SafeWork NSW.
Staff have complained of heavy workloads and increasing pressure at the university with Newcastle recently ranking one of the worst universities for psychosocial safety. The university said the timing of the census coincided with a particularly challenging period of change.
To help support staff through organisational change, the annual report shows the university developed psychosocial risk registers.
"Risk assessment measures were integrated into our change process to minimise physical and psychosocial risk and hazards associated with workplace changes," Professor Zelinsky said.
Professor Zelinsky said decisions that impacted staff were not taken lightly.
"Returning a positive operating result has put our university in a stronger position to reinvest in our people, enhance the student experience, and help build a stronger future for the Hunter Region," he said.
"Financial sustainability is not an end in itself. It is the foundation on which our university delivers on its public good purpose and supports our students, staff, and the communities we serve."
