Computershare (CPU) H1 2025 earnings summary

Executive summary

• Management EPS rose 18.7% year-over-year to $0.653 (65 cps), with revenue up 6.4% and EBIT ex Margin Income up nearly 28% versus pro forma PCP, reflecting strong operational momentum and core business growth.

• Net profit after tax attributable to members surged 173.5% to $287.8 million, driven by core business performance and the absence of prior period impairment charges.

• Interim dividend increased by 12.5% to AUD 45 cents per share, unfranked.

• Sale of U.S. Mortgage Services completed in May 2024, highlighting robust performance of continuing operations.

• Upgraded FY25 management EPS guidance to $1.35 per share (135 cps), a 15% increase year-over-year.

Financial highlights

• Management revenue reached $1.5bn, up 6.4% on a proforma basis, with EBIT ex Margin Income up 27.9%.

• Margin income was resilient at $392.7 million, down less than 1% despite rate cuts.

• Management MPAT up 16% to $383.6 million; statutory MPAT up 174% to $287.8 million.

• Operating cash flows increased to $354.2 million, with free cash flow at $329.1 million, up 2.2% proforma.

• Interim dividend per share increased to AUD 45cps, up 12.5% year-over-year.

Outlook and guidance

• FY25 management EPS now expected at $1.35 per share (135 cps), up 15% year-over-year.

• Margin income guidance upgraded to $760 million for FY25, with average client balances of $30.2 billion.

• EBIT ex Margin Income expected to rise around 30% for the year.

• 2H25 margin income expected to be lower due to anticipated interest rate cuts.

• Net debt to EBITDA expected at 0.5x by year-end, with buyback completion.