3i Group (III) H2 2025 earnings summary

Executive summary

• Achieved a 25% return on equity for FY25, marking the fifth consecutive year of 20%+ total returns, with NAV per share up 22% to £25.42 (2,542p).

• Strong performance driven by Private Equity, especially Action, and resilient portfolio construction focused on value/private label, infrastructure, and healthcare sectors.

• Dividend per share increased to £0.73 (73p), reflecting robust cash generation and conservative capital management.

• Portfolio is concentrated in private growth companies, with 87% of value in core sectors.

• Maintained prudent leverage and high liquidity, positioning for resilience across economic cycles.

Financial highlights

• Private Equity gross investment return was 26%, with Action contributing 32%.

• Portfolio value reached £25.6bn, up from £19.6bn year-over-year; Action valued at €43.1bn EV, with 18.5x LTM EBITDA multiple.

• Cash proceeds from realizations and dividends totaled £2.3bn, with Action contributing £1.6bn.

• Operating cash profit of £469m, with cash income of £598m and expenses of £129m.

• Gearing at 3% and net debt of £771m, well within new capital management tram lines.

Outlook and guidance

• Portfolio positioned defensively with strong earnings momentum, especially among larger companies and core assets.

• Budgeting for another year of compounding growth in FY26, with continued robust performance expected.

• Limited direct exposure to U.S. tariff policy; over 90% of portfolio value is Europe-based.

• Action expected to open its 3,000th store in June, with long-term potential for over 7,700 stores.

• Dividend policy aims to maintain or grow payouts, subject to market and investment outlook.