Perpetual Group (PPT) H2 2025 earnings summary

Executive summary

• Operating revenue for FY25 was $1.373 billion, up 3% year-over-year, with growth across all business lines.

• Underlying profit after tax was $204.1 million, down 1% from FY24, and statutory net loss after tax was $58.2 million due to a $134.6 million impairment at J.O. Hambro.

• A new group strategy and leadership team were implemented, focusing on simplification, operational excellence, and growth investment.

• Internal separation of divisions advanced, with the proposed sale of Wealth Management ongoing.

• Cost savings from the Simplification Program delivered $44 million annualised, exceeding the $30 million target.

Financial highlights

• Performance fees rose to $34.3 million, mainly from Pendal and J.O. Hambro.

• Total expenses increased 4% to $1,093.9 million, with controllable cost growth at 3%.

• Free cash flow was $135.8 million, with a year-end cash balance of $343.2 million.

• Gearing ratio stood at 31%, with gross debt reduced to $738.5 million after refinancing.

• Diluted EPS on underlying profit after tax was 180.8 cps, down 1% year-over-year.

Outlook and guidance

• FY26 priorities include further simplification, cost reduction, strengthening the balance sheet, and targeted investment in new products.

• FY26 expense growth is expected to moderate to 2%-3%, excluding remuneration expenses related to performance fees.

• Dividends are expected to remain unfranked through FY26.

• Continued focus on cost discipline, balance sheet strengthening, and potential sale of the wealth management business.