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NPAT: $127 million, up significantly from the previous year. Underlying NPATA: Increased by 6.3% to $161.5 million. EBITA: Increased by $12.6 million to $293.6 million. Diluted EPS NPAT: $0.124 CPS, up 7.2%. Acquisitions: $238 million in the first half, with 195 acquisitions planned for the second half. Expense Management: $7 million saved from head office costs. Dividend: Up 5.1% to $0.082. Gross Written Premium: Increased by 4.4% to $6.4 billion. Revenue: Up 2.7% to $240.9 million. EBITDA: Flat year-on-year at $112.7 million. Underlying Revenue: Increased by 14.6% to approximately $1 billion. Underlying EBITDA: Increased by 12.6% to $293.6 million. Underlying NPAT: Increased by 7.3% to $137.5 million. Gearing Ratio: 33.4%, below the maximum rate of 40%. Adjusted Net Cash from Operating Activities: $164.7 million. Free Cash Flow: $34.7 million, up from $32.5 million in the prior period.

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Release Date: February 25, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Steadfast Group Ltd (SFGLF) reported a significant increase in NPAT to $137.5 million, up 7.3% from the previous year. The company completed $238 million in acquisitions during the first half, all of which were EPS accretive. Steadfast Group Ltd (SFGLF) achieved a 5.1% increase in dividends, reflecting a strong commitment to shareholder returns. The company has implemented cost-saving measures, reducing head office expenses by $7 million and achieving $4 million in savings from subsidiaries. Steadfast Group Ltd (SFGLF) continues to expand its international presence, with strong performance in the U.S. and U.K. markets and plans to enter the Canadian market.

Negative Points

The company is facing challenges in the New Zealand market, which is currently experiencing a downturn. There is uncertainty regarding future EBITDA multiples due to recent market volatility, impacting acquisition strategies. The professional lines business has faced challenges, with D&O premiums falling by 8.4%, affecting organic growth. Higher financing costs due to interest rate headwinds have impacted cash flow from operating activities. The company is experiencing a softening market in certain sectors, such as D&O and ISR, which are currently in the red.

Q & A Highlights

Q: Can you talk a little bit more about the second half earnings bridge and what factors will support growth? A: Tim Mathieson, CEO of Australasia Broking, explained that they have plans to review and implement changes to fees and operational costs. Subsidiary principles have been guided to use natural attrition to improve employment expense costs, which will start to reflect in the second half. Robert Kelly, CEO, added that increased fees and operational changes in underwriting agencies will also contribute to a better second half.

Continua a leggere

Q: Did the acquisitions in the first half skew towards the end of the period? A: Robert Kelly confirmed that many acquisitions were finalized towards November and December, which means the revenue uplift from these acquisitions will be more noticeable in the February to June period.

Q: With the share price derating, how do you intend to drive EPS growth and fund acquisitions without increased dilution? A: Robert Kelly stated that they focus on EPS accretive acquisitions and are confident that their current acquisition strategy will continue to be beneficial. They are not considering share buybacks as they believe they can deploy capital more effectively through acquisitions.

Q: What is your view on the softening market cycle, and has it turned? A: Robert Kelly noted that while some product lines were in the red, many others showed positive growth. He indicated that the market might have bottomed out and is starting to stabilize, with potential for inflationary increases in GWP, suggesting a more rational pricing environment.

Q: Are there any non-core businesses within the group that you might consider restructuring or selling? A: Robert Kelly mentioned that they continuously evaluate their portfolio and are open to restructuring or selling businesses if they believe they can achieve better returns by reallocating capital elsewhere.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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