Magellan Financial Group (MFG) H1 2025 earnings summary

Executive summary

• Adjusted net profit after tax for 1H25 was $84.1 million, down 10% year-over-year; statutory net profit after tax was $94.0 million, also down 10%.

• CEO transition completed with Sophia Rahmani appointed effective March 2025, alongside several key executive hires to strengthen management.

• Strategic partnerships with Barrenjoey and Vinva contributed to earnings diversification and capability expansion, including the launch of three new systematic equity funds and a fourth in progress.

• Employee engagement improved to 64%, up 12 points year-over-year, with more employees rating the company as a great place to work.

• Interim dividend of 26.4 cents per share (85% franked) declared, payable 12 March 2025.

Financial highlights

• Adjusted diluted EPS was 46.8 cents, down 9% year-over-year; statutory diluted EPS was 52.3 cents.

• Adjusted revenue and other income were $159.9 million, down 12% half-on-half, while total revenue and other income rose 5% to $178.6 million year-over-year.

• Performance fees rose to $6.1 million from $0.1 million in the prior half.

• Share of after-tax profits from associates increased to $11.4 million, up from $3.1 million year-over-year.

• Operating cash flow improved to $63.4 million from negative $4.7 million in 1H24.

Outlook and guidance

• Expense guidance for FY25 remains at $105–110 million for the Investment Management business.

• Focus on delivering strong investment performance, expanding global distribution, and leveraging partnerships, especially with Vinva and Airlie.

• Capital management and dividend policy under review, with updates expected at FY25 full year results.

• U.S. market remains a priority for capital deployment, with a disciplined and patient approach.