Magellan Financial Group (MFG) H2 2026 earnings summary

Executive summary

• Completed merger of MFG and Barrenjoey, creating a diversified Australian financial services group with balanced revenue streams across financial markets, corporate finance, and investment management.

• Integration is progressing, with full migration to common systems expected by June 2027 and operational synergies of $6m before tax underway.

• Decisive restructure of heritage Magellan Global Equity funds, with partial realisation of fund investments and proceeds managed by Group Treasury.

• The group is positioned for growth, with expanded product offerings, international reach, and a disciplined approach to investment and capital management.

Financial highlights

• Combined pro forma FY26 revenue was $778 million, with operating profit after tax of $215 million and net profit after tax of $146 million, including non-recurring items.

• MFG standalone revenue declined 12% to $291 million, with operating profit after tax down 9% to $145 million.

• Barrenjoey operating profit after tax rose 68% to $112 million, with revenue up 34% to $573 million.

• Dividend declared at 25.5 cents per share, fully franked, with an 80% payout ratio.

• MFG's statutory net profit after tax was $88 million, down 47% year-over-year.

Outlook and guidance

• FY27 will be a transition year, with full impact of management actions (fund repricing, capital de-risking) expected and operating profit after tax projected to reduce by $33 million.

• Dividend payout ratio for FY27 targeted at 60%-90% of operating profit after tax, initially at the upper end.

• Continued investment in international expansion and new product offerings, with New Zealand operations expected to be a cost drag in FY27 before benefits emerge.