HMC Capital (HMC) H2 2026 earnings summary

Executive summary

• FY26 results met guidance, with operating EPS of 40.4c (pre-tax) and strong recurring funds management revenue, supported by disciplined execution and a strategic focus on Real Estate, Digital Infrastructure, Private Credit, and Energy.

• Significant progress made in simplifying and scaling the business, including winding up HMC Capital Partners and scaling back U.S. digital operations, releasing AUD 150 million of capital.

• Balance sheet materially strengthened, restoring investment capacity and providing AUD 1.9 billion in liquidity and investment capacity.

• Entering FY27 with strong fundraising momentum, significant dry powder, and multiple growth pathways across all verticals.

Financial highlights

• Operating EPS for FY26 was AUD 0.404 (pre-tax), in line with guidance; underlying EPS (pre-tax) was 30.2c.

• Fee-generating AUM rose to AUD 16.9 billion, up 15% year-over-year, driven by institutional capital partnerships.

• Recurring funds management revenue increased 22% to AUD 165.5 million year-over-year.

• Management fee revenue grew 23% to AUD 159.3 million; transaction and performance revenue fell to AUD 41.2 million due to fewer large transactions.

• Final dividend of AUD 0.12 per share declared for FY26.

Outlook and guidance

• FY27 underlying earnings guidance of at least AUD 0.35 per share, representing 16% year-over-year growth.

• Dividend guidance for FY27 is AUD 0.15 per share, up 25% from FY26.

• Over 30% growth expected in recurring funds management revenue and ~35% higher distributions from co-investments.

• 100% cash conversion expected for underlying earnings in FY27 as non-cash fee arrangements cease.

• Guidance excludes upside from capital recycling, large transactions, and one-off gains.