Shine Justice (SHJ) H2 2025 earnings summary

Executive summary

• FY 2025 featured strategic organizational restructuring, new CEO and CFO appointments, and a sharpened focus on personal injury and class actions, with divestment from non-core areas.

• Revenue increased to $204.4 million from $195.7 million year-over-year, while adjusted EBITDA declined to $38.4 million from $45 million, and adjusted NPAT fell to $9.7 million from $14.5 million.

• Final fully franked dividend of $0.05 declared for FY25, reflecting confidence in cash position.

• Operating cash flows were $30.6 million, down from the prior year due to one-off class action receipts in FY 2024.

• Initiatives launched to drive shareholder value in FY26 include technology investments and US mass torts expansion.

Financial highlights

• Revenue up 4.4% year-over-year to $204.4 million, driven by core practice areas.

• Adjusted EBITDA down to $38.4 million, mainly due to increased provisions, higher employee benefits, and a $9.6 million fair value loss.

• Net debt increased to $53.6 million, primarily from reclassifying $18.8 million disbursement funding to borrowings, resulting in interest savings.

• Gross borrowings at $71.6 million, with average cost of debt around 7%.

• CapEx at $2.3 million, lower than previous years.

Outlook and guidance

• FY26 outlook anticipates improved financial outcomes, supported by leadership changes, strategic realignment, and targeted branch-level growth in PI and class actions.

• PI EBITDA margin baseline set at 20%, with ambitions to reach 25% or higher as operational improvements take effect.

• Class actions segment expects further revenue growth as portfolio funding is secured, with growth weighted toward the second half of FY 2026.

• Continued investment in emerging technologies and US International Mass Torts strategy.

• Headcount expected to decrease as AI and technology improve efficiency.