Steadfast Group (SDF) H2 2024 earnings summary

Executive summary

• Underlying EBITDA/EBITA rose 22.7% and underlying NPAT increased 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%.

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

• Broking and underwriting agency segments delivered double-digit growth, supported by technology, price increases, and operational efficiencies.

• Final fully franked dividend increased 15% to 10.35 cps, with total FY24 dividend up 14% to 17.1 cps.

Financial highlights

• Underlying revenue rose 18.9% to AUD 1.676 billion; EBITDA/EBITA up 22.7% to AUD 528.5 million.

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

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

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

• 70% of revenue is commission-based, leveraged to GWP.

Outlook and guidance

• FY25 guidance: underlying EBITDA/EBITA AUD 590–600 million, NPAT AUD 290–300 million, NPATA AUD 340–350 million.

• Diluted EPS NPAT growth expected at 12%–16%, with 7%–9% premium rate increases assumed.

• AUD 300 million in acquisitions targeted for FY25, funded by debt and free cash flow.

• No U.S. acquisitions included in FY25 guidance.

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