HMC Capital (HMC) H1 2025 earnings summary

Executive summary

• Achieved record pre-tax operating earnings of $202.2 million for 1H FY25, up 240% year-over-year, with operating EPS (pre-tax) up 204% to 51.9 cents compared to 1H FY24.

• Assets under management (AUM) increased 45% since June 2024, reaching $18.5 billion, supported by new fund launches, acquisitions, and platform expansion.

• Major acquisitions included Payton Capital and Stratcap, expanding into private credit and digital infrastructure, and the launch of DigiCo REIT and acquisition of Neoen's Victorian renewable portfolio.

• Strong organic growth and fundraising momentum across all business verticals, with significant new institutional partnerships.

• Record investment returns and performance fees from Private Equity division.

Financial highlights

• 1H FY25 revenue rose 203% year-over-year to $272.3 million; management fees up 209% to $126.5 million.

• Operating earnings before tax increased to $202.2 million from $59.4 million in 1H FY24; after-tax operating earnings at $140.5 million.

• Interim dividend of 6.0 cents per share, fully franked; annualised FY25 operating EPS (pre-tax) tracking at 80 cents.

• Net tangible assets plus undrawn debt at $1.9 billion as of Dec 2024; net assets at $1.69 billion.

• Basic EPS was 42.88 cents, up from 5.11 cents; diluted EPS was 42.59 cents, up from 5.08 cents year-over-year.

Outlook and guidance

• Annualised FY25 pre-tax operating EPS is tracking at 80 cents; dividend per share guidance reaffirmed at 12.0 cents.

• Fundraising for the Energy Transition Platform targets first close in H1 2025 ahead of the $950 million Neoen acquisition financial close.

• Continued strong operating EPS growth expected, driven by scalable platforms in real estate, energy transition, digital infrastructure, private credit, and private equity.

• Positioned for continued AUM growth across diversified global platforms, with further AUM growth anticipated as interest rates ease.