ASX Limited

FY26 operating revenue was $1.25 billion, up 13.3% year over year. Underlying net profit after tax rose 5.2%, underlying EPS was $2.758, and underlying ROE improved to 13.7%, up 10 basis points. Statutory NPAT fell 3.5% due to significant items, including the ASIC legal settlement, a CHESS Replacement Partnership Program milestone expense, and the Sympli loss. EBITDA margin was 61%, down 180 basis points; excluding ASIC Inquiry expenses it was 63.4%, up 60 basis points. Total expenses were $557.4 million, up 21.1%, and the company recorded $30.8 million of ASIC Inquiry-related operating expenses. Listings revenue was $215.2 million, Markets revenue $414.1 million, Technology & Data revenue $297.6 million, and Securities & Payments revenue $327.7 million. FY26 CapEx was $179.6 million. Guidance for FY27 was reconfirmed at 18% to 21% total expense growth, 13% to 16% operating expense growth excluding D&A, and CapEx of $180 million to $200 million; FY28 CapEx is expected at $170 million to $190 million. Management said July started strongly, with $8.4 billion of net new capital added and on-market value traded up 12% versus pcp, but did not give full-year revenue guidance.

Darren Yip framed FY26 as a “landmark year” because the ASIC Inquiry concluded, the prior CHESS legal matter was settled, and the company completed a CEO transition. He emphasized operational resilience, record volumes, and the importance of technology modernization, saying the business is investing to support a more resilient and scalable market infrastructure. His tone was constructive and execution-focused, with FY27 centered on trust, customer-driven growth, and shaping market innovation through AI, Austraclear upgrades, and tokenization exploration.

Andrew Tobin highlighted the hard numbers behind the year: $1.25 billion of operating revenue, $557.4 million of expenses, 61% EBITDA margin, $2.758 underlying EPS, and $179.6 million of CapEx. He pointed out that excluding ASIC Inquiry costs, expense growth was 14.4% and EBITDA margin would have been 63.4%, and he noted $30.8 million of ASIC-related operating expenses stayed within guidance. On capital allocation, he said ASX has $250 million of available cash and short-term investments above financial resource requirements, a $400 million corporate debt facility that is undrawn, and plans to refinance $275 million of corporate bonds in the first half of FY27. He also said ASX is working toward accumulating $150 million above the 31 December 2025 NTA value by 30 June 2027, and that the lower 75% payout ratio plus the DRP should support that target.

Analysts focused on how the building-block pricing model for issuer services and clearing/settlement will work, including whether FY27 revenue could simply preserve the $13 million rebate if turnover were flat. Management said the FY27 revenue requirement will depend on volumes, CapEx, and the higher cost base, and that the company will publish more detailed inputs around October and then update them every six months. Questions also covered the FY27 cost growth buckets, with management saying technology modernization and Accelerate are the main drivers, while growth initiatives are a smaller part. On Austraclear, management said U.S. dollar issuance, tokenization of bonds, and extending service hours are key opportunities, and confirmed the aging system remains a resilience focus and part of the CapEx plan.