HMC Capital (HMC) H1 2026 earnings summary

Executive summary

• Recurring funds management earnings and management fees grew 34% year-over-year, with AUM rising to $19.5 billion, driven by strong demand in Energy Transition (+30%) and Private Credit (+13%), and supported by diversified earnings across private credit, digital, and Energy Transition verticals.

• 1H FY26 pre-tax operating EPS was 10.1 cents ($41.6 million), with a partially franked interim dividend of 6.0 cents per share declared; including a $35 million capital charge from the KKR partnership, EPS rises to 18.6 cents.

• Strategic partnership with KKR in Energy Transition secured a $603 million investment and $250 million follow-on capital, enhancing capital and scale for future growth.

• Major renewable energy acquisition (Neoen's Victorian portfolio) for $950.0 million, classified as held-for-sale, funded by $556.3 million senior debt and $200.0 million mezzanine facility.

Financial highlights

• Management fee revenue increased 34% year-over-year to $84.5 million, driven by growth in real estate, private credit, and digital infrastructure AUM.

• Operating earnings before tax for H1 FY26 were $41.6 million or 10.1 cents per share, with post-tax operating earnings of $29.1 million.

• Total revenue and other income (excluding fair value changes) was $122.0 million, down from $151.8 million year-over-year, reflecting lower non-recurring transaction and performance revenue.

• Net liquidity position of $1.6 billion maintained, with strengthened balance sheet and undrawn debt.

• Interim dividend of 6.0 cents per share declared, partially franked, unchanged from prior period.

Outlook and guidance

• FY26 funds management EBITDA guidance reaffirmed at $85 million, with real estate and private credit segments targeting 15% and 20% YoY EBITDA growth, respectively.

• FY26 pre-tax operating EPS target of at least 40 cents per share and dividend guidance of 12 cents per share reaffirmed.

• Investment income for FY26 expected to be at least $85 million, driven by co-investment distributions and Energy Transition valuation gains.

• $35 million capital charge from KKR partnership in Energy Transition expected in 2H FY26, subject to transaction close.

• No other material events or changes expected to significantly affect future operations as of the report date.