Computershare (CPU) H2 2025 earnings summary

Executive summary

• Management EPS rose 15% year-over-year to 135–135.28 cents per share, in line with upgraded guidance, with EBIT ex Margin Income up 17.4% and margin expansion of 150bps.

• Revenue increased 4.4% to $3.1bn, driven by recurring client fees and transactional revenues, with all core businesses achieving growth.

• Strategic focus on simplifying the group and recycling capital toward long-term growth trends, resulting in a capital-light, higher-quality business.

• Completed the sale of U.S. Mortgage Services in May 2024, with pro forma results excluding this business for comparability.

• Shareholder returns increased, including a $750 million AUD share buyback and a final dividend up 14.3% to AUD 48 cents per share.

Financial highlights

• Management revenue grew 4.4% year-over-year; core client-paid fee revenues up over 4%.

• EBIT ex Margin Income rose 17.4% to $411.9m, with EBIT ex MI margin at 17.5%, up 150bps.

• Margin income was $759.1m, down 2.8% year-over-year, but exceeded expectations.

• Management NPAT increased 11.6% to $791–$793.8m; statutory NPAT was $607m.

• Cash conversion rate improved to 66% of Management EBITDA; free cash flow excluding SLS advances was $780.1m.

Outlook and guidance

• FY26 Management EPS guidance is around 140 cents per share, a 4% increase; EBIT ex MI expected to grow 5%.

• Margin income expected to decline by about 5% in FY26 to ~$720m due to lower interest rates.

• Natural hedge from floating-rate debt expected to save $0.05 per share in FY26.

• Conservative guidance approach, with potential upside if client balances or event-driven revenues recover.

• Group tax rate expected between 24%–25%; capital and debt markets anticipated to remain stable.