FY25 Market Release

• Normalised net profit after tax up 9% to $456 million
• Statutory net profit after tax up 48% to $192 million
• Normalised basic earnings per share up 9% to 66.3 cents per share

Challenger Limited (ASX:CGF) today announced its full-year financial results for 2025, with normalised net profit after tax of $456 million up 9% and in-line with earnings guidance. The company delivered a strong result, achieving its financial targets, executing its strategic initiatives and progressing a digital transformation that will underpin the next phase of its growth strategy. Challenger's business continued to demonstrate its standing as a retirement income leader, with record retail lifetime and Japanese annuity sales reflecting the success of its strategy to grow longer duration, more valuable business. The company strengthened its relationships across the retirement market, adding new partnerships with superannuation funds, wealth managers and platforms. Challenger is also launching a new income platform that will issue ASX listed income notes, pairing its investment capability to meet Australians' demand for quality, dependable income. The company's asset origination capability is the engine of its growth plans, with investment in its platform helping deliver higher yield for the balance sheet and providing clients with access to attractive assets. Reflecting Challenger's strong performance, the Board determined a fully franked dividend of 29.5 cents per share, an increase of 11% on last year. The company has a clear strategy and is executing against it, with its digital transformation well underway, becoming a simpler, customer-focused and higher-returning business that's moving to the next phase of growth.

From FY26, Challenger's earning guidance will move from normalised NPAT to normalised basic EPS, with a target range of 66 to 72 cents per share and a mid-point of 69 cents per share, representing a 4% increase on FY25.

Challenger has a clear strategy and is executing against it. With its digital transformation well underway, it is becoming a simpler, customer-focused and higher-returning business that's moving to the next phase of growth. The company's business has the ambition to meet the retirement 'megatrend' and benefit from structural market growth and regulatory reform.