Insignia Financial Ltd

First-half 2026 net revenue was $718.2 million, up 1.8% versus 1H25, driven primarily by 6% average FUA growth to $339 billion. EBITDA increased 6.5% to $238.2 million, underlying NPAT rose 6.3% to $132.1 million, and reported NPAT improved to a $78.8 million profit from a $16.8 million loss. Group revenue margin fell from 43.8 basis points to 42%, while base OpEx declined 6.4% to $449.2 million and total OpEx slipped 0.5% to $480 million. Free cash flow was positive $52 million versus negative $239 million in 1H25, and senior leverage was just under 1x net debt to EBITDA at 0.9x. For FY26, management raised Master Trust margin guidance to 51.5 to 52.5 basis points from 51 to 52 basis points, lowered Wrap margin guidance to 27 to 28 basis points from 27.5 to 28.5 basis points, and said cost guidance remains unchanged.

Scott Hartley framed the half as steady execution against the 2030 strategy, with progress across cost-out, AI enablement, simplification and product innovation. He highlighted brand relaunch momentum for MLC, stronger Advice productivity, Wrap service and flow improvements, and continued Master Trust simplification. His tone was confident and disciplined, repeatedly emphasizing that the business is “on track” for its medium-term targets, including gross cost savings and the broader 2030 vision.

David Chalmers focused on the financial mechanics behind the improved result: higher FUMA-related revenues, offset by lower margins in Master Trust, Wrap and Asset Management from pricing and mix changes. He noted base OpEx of $449.2 million, reinvestment OpEx of $30.8 million, and a sharp reduction in below-the-line cash items from $153 million to $15.9 million, which helped free cash flow reach $52 million. He also said FY26 still expects $54 million of future funding requirements for remediation, including repayment of the $254 million subordinated loan notes before May 2026, and expects closing FY26 leverage around 1x net debt to EBITDA.

On the CC Capital scheme, management said the timetable now depends on finalizing the scheme booklet, feedback from ASIC/ASX, and CC Capital’s APRA process, followed by court and shareholder approval. David Chalmers said there are no mechanisms in the SID to change the $4.80 price, aside from a possible special dividend if implementation slips beyond 12 months and certain conditions are met. Scott Hartley said the Board remains unanimous in recommending the bid and described it as a 57% premium to the undisturbed close. On the Master Trust roadmap, Scott reiterated the company expects $200 million of gross cost savings from Master Trust by 2030, about half of the overall gross savings target.