Australian Foundation Investment Company (AFI) H1 2026 earnings summary

Executive summary

• Half-year profit was $147.0 million, down 4.6% year-over-year, with EPS at 11.7 cents and an interim dividend of 12.0¢ plus a 2.5¢ special dividend, both fully franked.

• Largest listed investment company on the ASX with 150,000 shareholders, maintaining a diversified portfolio and a low-cost structure.

• Portfolio underperformed the S&P/ASX 200 Accumulation Index over the last six and twelve months, with NTA returns of -2% for six months and 1.2% for one year.

• Management remains committed to a long-term investment approach focused on high-quality companies, despite recent disappointing short-term results.

• Special dividends declared due to strong franking and profit reserves, with another special dividend expected at year-end.

Financial highlights

• Income declined by $4 million, mainly due to reduced dividends from large holdings like BHP, Woodside, and Woolworths.

• Management expense ratio (MER) was 0.11% (annualised), reflecting low operational costs.

• Portfolio value at $9.9 billion as of 31 December 2025, down from $10.4 billion at the end of 2024.

• NTA per share at $7.90; share price at $7.19 as of 31 December 2025.

• Net profit per share was 11.7 cents, down from 12.29 cents in the previous period.

Outlook and guidance

• Market seen as moderately expensive amid geopolitical and economic uncertainty, but selective opportunities identified in high-quality companies.

• Board intends to pay an additional 2.5¢ per share special dividend, fully franked, with the final dividend, subject to year-end results.

• Continued focus on stable to growing dividends and attractive total returns over the medium to long term.

• No plans to list a separate international fund; international exposure will remain a small, concentrated part of the portfolio.

• Directors will consider further capital management initiatives based on franking credit balances and realised capital gains.