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.

• NAV per share rose to £25.42 (2,542p), up 22% year-over-year, despite a £259m FX translation loss.

• Dividend per share increased by 20% to £0.73 (73p), reflecting robust cash generation and conservative capital management.

• Portfolio is concentrated in private growth companies across value/private label, infrastructure, and healthcare sectors, representing 87% of value.

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

Financial highlights

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

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

• Portfolio value ended at £25.6bn, up from £19.6bn year-over-year; Action valued at €43.1bn EV, with 3i's share at £17.8bn.

• Infrastructure portfolio valued at just over £2bn, generating £598m in cash income.

• Operating cash profit of £469m, with gross investment return of £5.1bn (26% of opening portfolio).

Outlook and guidance

• Portfolio positioned defensively for consistency and resilience, with strong earnings momentum and exposure to long-term growth trends.

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

• Action expected to continue sector-leading performance, with significant store expansion potential in Europe.

• Anticipates margin benefits from improved sourcing in China, with most impact in 2026.

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