Steadfast Group (SDF) H2 2024 earnings summary

Executive summary

• Underlying EBITDA/EBITA increased by 22.7% and underlying NPAT rose 21.8% year-over-year, reflecting strong organic and acquisition-driven growth.

• Statutory NPAT reached AUD 228 million, up from AUD 189.2 million, with diluted EPS up 16.2% and final dividend up 15% to 10.35 cps, fully franked.

• Completed 47–48 acquisitions in FY24 for AUD 309–457.8 million, including Sure Insurance and ISU Group, with a strong pipeline for FY25 targeting AUD 300 million in acquisitions.

• Broking and underwriting agency segments delivered double-digit EBITA growth, supported by price increases, volume growth, and technology adoption.

• U.S. operations (ISU Steadfast) exceeded profit expectations and expanded international presence.

Financial highlights

• Underlying revenue rose 18.9% to AUD 1.676 billion; EBITDA/EBITA up 22.7% to AUD 528.5 million; underlying NPAT was AUD 252.2 million (+21.8%).

• Underlying NPATA increased 20% to AUD 302.4 million; diluted EPS (NPAT) up 16.2% to 23.4 cps; diluted EPS (NPATA) up 14.4% to 28.1 cps.

• Free cash flow exceeded AUD 120 million, supporting dividends and acquisitions.

• Gearing at 20–20.2%, well below the 30% target, with AUD 366 million debt capacity.

• 48 earnings-accretive investments completed for AUD 457.8 million.

Outlook and guidance

• FY25 guidance: underlying EBITA AUD 590–600 million, NPAT AUD 290–300 million, NPATA AUD 340–350 million, and diluted EPS NPAT growth of 12–16%.

• Assumes 7–9% premium rate increases and AUD 300 million in acquisitions, with no U.S. acquisitions included.

• Margin improvement of 40–50 basis points expected, with continued investment in compliance and technology.

• Run-rate impact of FY24 acquisitions expected to contribute ~3.6% underlying NPAT growth in FY25.

• Guidance subject to insurance premium increases, acquisition execution, and key risks outlined in the 2024 Annual Report.