WAM Capital (WAM) investor relations material

Executive summary

• Achieved operating profit before tax of $304.0m and after tax of $219.6m for FY2025, reflecting strong investment portfolio performance and outperformance of key benchmarks.

• Investment portfolio increased 22.2% for the year, outperforming the S&P/ASX All Ordinaries Accumulation Index by 9.0% and the S&P/ASX Small Ordinaries Accumulation Index by 9.9%.

• Full year dividend maintained at 15.5 cents per share, 60% franked, with a grossed-up yield of 12.6% and total dividends and franking credits since inception exceeding $2.0bn.

• Total shareholder return (TSR) for FY2025 was 22.5% including franking credits, driven by strong portfolio performance and narrowing share price discount to NTA.

Financial highlights

• Operating profit before tax: $304.0m (FY2024: $319.4m); after tax: $219.6m (FY2024: $229.2m).

• Investment portfolio return: +22.2% (vs. +13.2% for S&P/ASX All Ordinaries Accumulation Index).

• Pre-tax NTA increased 19.2% to $1.57 per share; share price rose from $1.43 to $1.545.

• Dividends paid: 15.5 cps (60% franked); grossed-up yield: 12.6%; dividend coverage at 1.3 years.

• TSR: 19.4% (excluding franking credits), 22.5% (including franking credits).

Outlook and guidance

• Board expects FY2026 full year dividend to be partially franked at 60%, subject to profits reserves and franking credits.

• Interest rates anticipated to decline in FY2026, with small-cap underperformance cycle expected to end, providing upside for portfolio holdings.

• Identified compelling investment opportunities in housing, consumer, and financial sectors, with exposure to sectors likely to benefit from lower rates.