Argo Investments (ARG) H2 2025 earnings summary

Executive summary

• Achieved record fully franked annual dividends of 37.0 cents per share, up 7.2% year-over-year, with both interim and final dividends at record highs.

• Profit rose 2.7% to $259.8 million, and earnings per share increased 2.4% to 34.1 cents compared to the prior year.

• Total assets grew 8.6% to $8.0 billion, and net tangible asset (NTA) per share increased to $10.43 from $9.61.

• Maintained a low management expense ratio of 0.15% and a strong balance sheet with no debt.

• Portfolio return after costs and tax was +13.3%, slightly trailing the S&P/ASX 200 Accumulation Index (+13.8%) due to underweight exposure to Commonwealth Bank.

Financial highlights

• Dividend income rose 7.7%, aided by $15.6 million in special dividends and $7.0 million in demerger dividends.

• Excluding special and demerger dividends, dividend income increased 3.0% year-over-year.

• Cash on hand at year-end was $119.3 million, with cash levels fluctuating based on portfolio activity and dividend payments.

• Share price return (TSR) was +10.1%, with the share price discount to NTA widening from -10.1% to -12.3%.

• On-market buy-back of 3.1 million shares at a cost of $27.9 million, accretive to EPS.

Outlook and guidance

• Focus remains on sustainably growing fully franked dividends and accelerating the distribution of accumulated franking credits.

• Well-positioned for varying market conditions with no debt, available cash, and a diversified portfolio.

• No significant changes to the business model are anticipated.