Hearts and Minds Investments (HM1) H1 2026 earnings summary

Executive summary

• Reported total comprehensive income after tax of $3.0 million for the half-year ended 31 December 2025, down from $115.3 million in the prior corresponding period.

• Declared an increased interim fully franked dividend of 9.5cps, payable in April 2026, with a stated intention to increase by 0.5cps every 6 months.

• Total shareholder return for the six months to 31 December 2025 was 7.9%, driven by share price appreciation and dividend payments.

• Investment portfolio performance was flat, with a 0.4% return after expenses and before taxes, compared to 23.6% in the previous half-year.

• Over $90.5 million has been donated to Australian medical research since 2016, with $5.4 million paid in the half-year to December 2025.

Financial highlights

• Net income for the period was $4.5 million, with total comprehensive income of $3.0 million.

• Basic and diluted EPS was 1.96 cents, down from 40.15 cents in the prior period.

• Total investment income was $13.6 million, significantly lower than $137.5 million in the prior half-year.

• Share price increased 4.9% over the half-year, with a total shareholder return of 7.9% including dividends.

• Since inception, annualised investment return is 10.8% per annum.

Outlook and guidance

• Interim fully franked dividend of 9.5 cents per share declared, payable on 16 April 2026.

• Board intends to continue increasing fully franked dividends by 0.5cps every 6 months, subject to no sustained market underperformance.

• Dividend policy is supported by a franking balance and tax liabilities sufficient to support 83cps of fully franked dividends.

• No other significant events or changes in outlook reported post period-end.