Steadfast Group (SDF) H1 2025 earnings summary

Executive summary

• Underlying NPAT rose 20.9% to $128.1m for 1H25, with underlying revenue up 11.5% to $881.3m and underlying EBITA up 14.6% to $262.4m, driven by organic growth, acquisitions, and insurer price increases.

• Completed $198.9m in acquisitions year-to-date, including international expansion in North America, Europe, and London, notably H.W. Wood, HWI France, and Sure Insurance.

• Interim dividend increased 15.6% to 7.8 cps, fully franked, reflecting strong financial performance.

• Maintained robust cash flow and balance sheet, supporting ongoing acquisition strategy and disciplined capital management.

• Strengthened senior management, including a new Chief Technical Officer, and focused on operational efficiency, margin improvement, and risk management.

Financial highlights

• Revenue: $881.3m (+11.5% vs 1H24); Underlying EBITA: $262.4m (+14.6%); Underlying NPAT: $128.1m (+20.9%); Statutory NPAT: $106.4m; Underlying NPATA: $154.6m (+19.0%).

• Gross Written Premium (GWP) up 7.9% to $6.5b in Australia, with 5.2% organic growth in the network and 2.6% in authorized representatives.

• Underwriting Agencies GWP up 11.7% to $1.22b, driven by 7% organic and 4.7% acquisition growth; EBITA up 15.8% to $106.4m.

• Free cash flow for the half was $32.5m; net cash inflows from operating activities of $184.9m.

• Interim dividend of 7.8 cps, up from 6.75 cps in 1H24.

Outlook and guidance

• FY25 guidance reaffirmed: underlying EBITA $585m–$595m, NPAT $290m–$300m, NPATA $340m–$350m, and underlying diluted EPS growth of 12%–16%.

• Guidance assumes mid-single digit insurance premium rate increases and $300m in acquisitions for FY25.

• Interim dividend of 7.8 cps, fully franked, to be paid 27 March 2025.