HMC Capital (HMC) H2 2025 earnings summary

Executive summary

• FY25 delivered record pre-tax operating earnings of $224.6 million, up 74% year-over-year, with pre-tax operating EPS rising 51% to 56.0 cents and AUM up 47% to $18.7 billion, driven by major acquisitions, fund launches, and the ASX listing of DigiCo Infrastructure REIT.

• All business verticals—real estate, private equity, private credit, digital infrastructure, and energy transition—contributed meaningfully to earnings, with significant expansion in digital infrastructure and private credit.

• Major acquisitions included Neoen's Victorian renewable portfolio and the Sigma–Chemist Warehouse merger, while new funds management divisions and unlisted real estate funds (HUG, HARP) were established.

• Despite operational success, share prices of listed REITs declined, prompting management focus on improved outcomes.

• Maintained a net cash position and declared a partially franked FY25 dividend of 12.0 cents per share.

Financial highlights

• Total revenue increased 113% to $403.5 million, with management fees up 84% and performance/other fees up 460% year-over-year.

• Funds management EBITDA surged 160% to $102.6 million, driven by new credit and digital divisions.

• Pre-tax operating earnings for FY25 were $224.6 million, or $0.56 per share.

• Investment income totaled $159 million, including $123 million from the capital partner's fund.

• Final dividend of $0.06 per share, full-year dividend $0.12 per share, partially franked.

Outlook and guidance

• FY26 pre-tax earnings targeted at least $0.40 per share, reflecting a 29% CAGR since FY20, with growth driven by recurring funds management earnings.

• Real estate targeting 15% EBITDA growth, private credit 20%, private equity aiming for 15% returns.

• Dividend guidance for FY26 remains at $0.12 per share, with retained earnings reinvested for growth.

• Digital and Energy Transition divisions expected to contribute more as platforms mature, with strong organic growth expected in recurring funds management income.