Steadfast Group (SDF) Investor Update summary

Strategic Focus, Growth, and Cost Optimisation

• Emphasis on organic growth, strategic integration, and realignment of subsidiaries, leveraging data analytics for decision-making and commission management.

• Achieved AUD 3.6 million in annualized cost savings through operational rationalization, head office redundancies, and focus on non-critical roles and vendor costs.

• Acquisition pipeline remains robust, with AUD 127.7 million completed and AUD 202 million targeted by FY26, supported by increased gearing ratio to 40%.

• Maintained confidence in FY25 guidance, with no changes to the split between organic and acquisitive growth for FY26.

• Regulatory engagement with ACCC is strong, with 18 of 20 acquisitions approved and faster turnaround times for clearances.

Market and Financial Performance

• Commission and fee rates have remained stable or improved, with domestic fee rates rising from 6% to 8.8% and enhanced analytics for market trends.

• Premium rate increases are tracking at 2.4% YTD, with some lines up to 7.8%, and guidance remains at 1-2% for the year.

• Renewals with rate decrease or no change are rising, reaching 39.86% in Q2 FY26, while over 60% of renewals are increasing in value.

• Nearly 80% of broker subsidiaries are achieving year-on-year revenue growth, with key subsidiaries exceeding 15% growth.

• Cost-out program and technology investments are expected to skew financial benefits more toward the second half of the year.

Broking, Subsidiary, and Network Performance

• Network expanded to 421 brokers, with a 25% rise in broker licence fee revenue and 60% adopting the Insight broking system.

• Strategic hubbing and consolidation of subsidiaries are driving margin improvement and operational efficiencies.

• Strategic expansion into New Zealand via Folio, adding $20.7m GWP and 19 brokerages.

• Broking subsidiaries focus on organic growth, operational efficiency, and enhanced financial reporting.

• Broker network member fees increased by 25%, and professional services fees are projected to exceed AUD 80 million for FY26.