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 increased to $2.758, and underlying ROE improved to 13.7%, up 10 basis points. Statutory NPAT declined 3.5%, EBITDA margin was 61% versus a 180-basis-point decline, and total expenses were $557.4 million, up 21.1% (14.4% excluding ASIC Inquiry costs). The Board declared a fully franked final dividend of $1.047 per share, taking the FY26 dividend to $2.065 per share, equal to a 75% payout ratio. FY27 guidance reconfirmed total expense growth of 18%-21% and operating expense growth ex-D&A of 13%-16%; CapEx is expected to be $180 million-$200 million in FY27 and $170 million-$190 million in FY28.

Darren Yip framed FY26 as a landmark year, pointing to the conclusion of the ASIC Inquiry and CHESS-related proceedings, a CEO transition, and strong operational resilience. He emphasized that ASX is investing heavily in technology modernization, operational resilience and the Accelerate program to strengthen trust in its market infrastructure. His tone was constructive and forward-looking, highlighting early momentum in FY27, new products, and planned innovation such as AI use cases, tokenization and a new digital issuer platform.

Andrew Tobin focused on the cost base and the mechanics behind the earnings result. He said revenue growth was partly offset by higher expenses, including $30.8 million of ASIC Inquiry-related operating expenses, and noted EBITDA margin was 61% or 63.4% excluding those inquiry costs. He also cited $179.6 million of FY26 CapEx, $250 million of available cash and short-term investments above financial resource requirements, an additional $50 million default fund contribution, and a plan to accumulate $150 million above the 31 December 2025 NTA value by 30 June 2027, with $132.9 million still to accumulate at year-end.

Analysts focused on the building block pricing model for issuer services and clearing/settlement, asking how the FY26 $13 million over-recovery rebate should be thought about in FY27. Management said the model will be updated with published inputs, that FY27 outcomes will depend on volumes and rising cost base factors like CapEx and expenses, and that they will provide more data in October and then every six months. Questions also probed expense growth, the persistence of higher costs into FY28, and whether medium-term margin guidance had been withdrawn; management said the higher spend is mostly technology modernization and Accelerate, some costs will carry into FY28, and the former margin metric has been deemphasized in favor of ROE.