The Australian Ballet has posted an operating loss of $4.7 million due to tough economic conditions and major renovations at its home.

The $1.7 billion Melbourne Arts Precinct Transformation project has forced the company to shift performances from the State Theatre to the Regent Theatre since 2024, resulting in fewer shows and premium seats.

Several rows of top-notch seating had to be pulled out to accommodate an orchestra, and the Regent Theatre's smaller stage required set modifications with new works commissioned to fit the space.

The move has also impacted revenue at the Australian Ballet Centre's Southbank car park, which brought in $1.9 million in 2025, along with other rental income, down from $3.4 million in 2024.

Australian Ballet chair Richard Dammery said the company remained focused on preparing to return to its home theatre, in its annual report released on Wednesday.

The State Theatre, which has been renamed the Ian Potter State Theatre, will reopen in October 2026.

The company also noted the impact of changed audience behaviours that have affected the industry more broadly, with the Australian Ballet attracting fewer subscribers and dance lovers buying individual tickets instead.

Before COVID-19 the company delivered a small surplus from its operations, but the 2025 result was an improvement on 2024 when operating losses totalled $6 million.

Overall box office revenue grew to $32.7 million in 2025, up from $31.3 million in 2024, a year in which ticket revenues fell by 15 per cent.

The company dipped into its reserves, spending $9 million from its foundation to deal with the State Theatre's closure and to provide extra cashflow, while another $13.6 million was distributed from its philanthropic arm to support 2025 programming.

The Australian Ballet and its subsidiary Orchestra Victoria are major employers in Australia's performing arts industry, with 327 staff including 75 dancers and more than 50 musicians.

Taxpayers have supported the national ballet with $9.1 million in grants and multi-year funding, totalling 14 per cent of the company's income, and it also received $14.1 million from donations and bequests.

The main stage season included John Neumeier's Nijinsky, David McAllister's The Sleeping Beauty, Kenneth MacMillan's Manon, and the triple bill Prism with pieces by Jerome Robbins, Stephanie Lake and William Forsythe.

The ballet also toured to Tokyo for the first time in 15 years with Don Quixote.

The company presented 264 live performances to more than 260,000 audience members, while about 43,000 people attended education workshops, professional development programs, and adult ballet classes.