Perpetual Limited

For the half ended 31 December 2025, operating revenue was $697.9 million, up 2% year over year. Underlying profit after tax was $112.7 million, up 12%, statutory NPAT was $53.9 million, and diluted EPS on NPAT was $0.971, up 9%. Total expenses were $547.8 million and the interim dividend was $0.59 per share, unfranked. Management raised FY26 expense guidance to 1% to 2% growth from the prior 2% to 3% range. Management also said $60 million in annualized simplification savings has been delivered to date, including $26.9 million reflected in the half, and total costs to achieve the program are expected to remain around $55 million.

Bernard Reilly said the company delivered a solid half with revenue and underlying profit growth and progress on strategic priorities. He emphasized the benefits of the multi-boutique model, stronger Australian distribution, new product launches, and continued investment in ETFs, fixed income, and AI-enabled workflow improvements. On the Wealth sale, he said the process is complex because the business must be untangled from the broader group, and he stressed the Board is focused on the best outcome for shareholders.

Suzanne Evans walked through the financial drivers: operating revenue of $697.9 million was supported by higher AUM and a further $10 million of performance fees, while total expenses of $547.8 million stayed within guidance. She said underlying profit after tax of $112.7 million benefited from improved Asset Management contributions, continued Corporate Trust momentum, and lower funding costs after debt refinancing. She also highlighted $58.8 million of significant items, free cash flow of $33.8 million, net cash receipts from operations of $82.9 million, and total cash of $325.6 million at 31 December 2025; the interim dividend implies a 60% UPAT payout ratio. She added that the effective tax rate on UPBT was 24.9% and should normalize around 27% to 28% over the medium term.

Analysts focused heavily on the Wealth sale timeline, with management saying the process is taking longer because the business is deeply intertwined with the rest of the group and must be separated while being sold. On expenses, management confirmed the FY26 guidance reduction to 1% to 2% was largely driven by FX assumptions, but also reflected tighter cost control and simplification savings. Questions on J O Hambro centered on continued outflows from select strategies; management said performance there remains soft, though some other global and emerging market strategies are seeing inflows. They also said seed capital is diversified across more than 20 capabilities and that the current $183 million level is appropriate, with a focus on recycling capital rather than materially increasing the pool.