Washington H. Soul Pattinson and Company Limited

Reported statutory NPAT was $2.191 billion, up 502% from $364 million a year ago. Nonrecurring items totaled a $1.5 billion gain, including about $1.3 billion from the Brickworks merger day-1 accounting gain and tax cost base reset, plus a $436 million mark-to-market gain on Tuas and Aeris, partly offset by just over $200 million of impairment, restructuring and other costs. Consolidated operating NPAT was $319 million, down $36 million, mainly due to lower profit contribution from New Hope. Net cash flow from investments was $572 million, up 11.5%, or $1.51 per share, up 8.3%; pretax NAV was $13.7 billion, up 10.2% for the year and 4.2% ahead of the market, while post-tax NAV rose 31.4% to $14.5 billion, or $8.15 per share, up 27.2%. The company declared a final dividend of $0.63 fully franked, taking full-year dividends to $1.11, up 7.8%. Looking ahead, management said the $2 billion of remaining global commitments should be drawn over the next 2 to 3 years, fixed income currently yields about 150 basis points above the RBA cash rate, and FY27 has started strongly with NAV up 4.3% versus a market down 1.1% to 22 September.

Todd Barlow framed FY26 as a year of major strategic repositioning rather than just a set of operating results. He stressed that the business is now more diversified, more liquid and better able to act opportunistically, with a portfolio spanning listed, private, credit, fixed income, emerging companies and real assets. His tone was confident and deliberate: liquidity is not a drag in his view, but a tactical advantage because it can be redeployed into higher-return opportunities when they appear.

David Grbin focused on translating the accounting outcomes into the figures investors should watch. He highlighted the $2.191 billion statutory NPAT, the $572 million of net cash flow from investments, pretax NAV of $13.7 billion, post-tax NAV of $14.5 billion, and the new net deferred tax asset of $792 million plus just over $1 billion of franking credits. He also explained that the portfolio is valued across multiple methods, with about 40% marked to market, 31% via third-party valuations, 21% via directors' fair value, and 8% at amortized cost for private credit.

Analysts pressed on whether the large cash/fixed income position was temporary and whether it could become a drag; management said it is a deliberate defensive stance and also a source of attractive risk-adjusted return, with the book yielding about 150 basis points above the RBA cash rate. Questions also focused on private credit risk and underwriting standards amid broader market concerns; Todd said Soul Patts avoids crowded areas like real estate development and SaaS-heavy sponsor lending, uses flexible structured solutions, and has not loosened standards. On offshore strategy, management said most new global commitments are in North America, the remaining $2 billion of commitments should be drawn over 2 to 3 years, and the same domestic team handles diligence and monitoring.