FY26 Market Release

• Normalised earnings per share (EPS) 68.1 cents per share, up 3%
• Normalised net profit after tax (NPAT) $468 million, up 3%
• Annuity sales up 19% to $6.2 billion

Challenger Limited, Australia's leading retirement income business, has announced its full-year results for 2026. The company reported a 3% increase in normalised net profit after tax to $468 million, in line with guidance. Normalised earnings per share increased 3% to 68.1 cents per share, while normalised return on equity remained above target at 11.6%. Annuity sales surged 19% to $6.2 billion, driven by a 19% increase in fixed term annuity sales and a 13% increase in lifetime annuities. The company also reported a robust capital position with a PCA ratio of 1.38 times, providing financial strength and flexibility. The Board declared a fully franked full-year ordinary dividend of 31.5 cents per share, up 7%, and a special dividend of 1.5 cents per share. Additionally, the company announced an upsized share buy-back program of $450 million.

FY27 Core Basic EPS guidance is a range of between 45 cents per share and 49 cents per share.

Challenger will report earnings under a new Group reporting framework starting FY27, which better represents how the business operates and creates value for shareholders.