WAM Capital (WAM) H2 2025 earnings summary

Executive summary

• Achieved operating profit before tax of $304.0m and after tax of $219.6m for FY2025, reflecting strong investment portfolio performance and outperformance of key benchmarks.

• Investment portfolio increased 22.2% for the year, outperforming the S&P/ASX All Ordinaries Accumulation Index by 9.0% and the S&P/ASX Small Ordinaries Accumulation Index by 9.9%.

• Full year dividend maintained at 15.5 cps, 60% franked, with a dividend yield of 10.0% and grossed-up yield of 12.6%.

• Since inception, returned over $2.0bn or 458.5 cps in dividends and franking credits to shareholders.

Financial highlights

• Net asset value at 30 June 2025 was $1.88bn, up from $1.81bn in 2024.

• Pre-tax NTA increased 19.2% year-over-year, including 15.5 cps of franked dividends paid and 5.4 cps of corporate tax paid.

• TSR for FY2025 was 22.5% including franking credits, or 19.4% excluding franking credits.

• Share price rose from $1.43 to $1.545, with NTA per share growing from $1.50 to $1.57 after dividends.

• Performance fees of $26.9m and management fees of $19.6m paid to the investment manager.

Outlook and guidance

• Board expects to maintain the full year dividend of 15.5 cps in FY2026, partially franked at 60%, subject to profits reserves and franking credits.

• Investment team anticipates interest rates will decline in FY2026, supporting small-cap outperformance.

• Identified compelling opportunities in sectors like housing, retail, and financials, with expectations of a recovery in small-cap performance.