Qualitas (QAL) H1 2025 earnings summary

Executive summary

• Achieved record first-half deployment of $2.4 billion, up 34% year-over-year, with Fee Earning FUM rising 41% to $7.9 billion and committed FUM at $9.2 billion, up 13% year-over-year.

• Net profit before tax increased 28% to $23.2 million and net profit after tax rose 30% to $16.3 million compared to the prior period.

• Platform scaled for growth since IPO, with high-quality portfolios, no credit impairments, and all credit funds exceeding hurdle rates.

• Strong momentum in base management fees and principal income, enhancing future earnings visibility.

• Residential sector accounted for 85% of deployment, mainly in the second quarter, providing visibility for future fee growth.

Financial highlights

• Funds management revenue grew 19% to $30.8 million, and principal income rose 37% to $13.3 million year-over-year.

• Funds management EBITDA margin reached 50.9%, with normalised Group EBITDA up 27% to $24.7 million and statutory EBITDA up 29% to $24.8 million.

• Base management fees grew by 32%, and normalised EPS increased 29% to 5.4 cents per share.

• Declared a fully franked interim dividend of 2.50 cents per share, up 11% from the prior interim dividend.

• Cash balance at $105.1 million at period end.

Outlook and guidance

• FY25 NPBT guidance reaffirmed at $49–$55 million, representing 26–41% growth over FY24.

• FY25 EPS expected between 11.50 and 12.91 cents; dividend payout ratio to remain between 50% and 95% of operating earnings.

• Anticipates further economies of scale, margin expansion, and strong base management fee growth in 2H25.

• Pipeline and closed transactions as of January 2025 reached $3.8 billion, up 12% year-over-year.

• Recurring base management fees and principal income expected to drive growth, with guidance based on stable market conditions.