Key points
- Record FY26 earnings with UPAT increasing 15% to $27.3 million
- Revenue up 9% to $129.5 million
- Net profit after tax (NPAT) attributable to shareholders up 29% to $25.7 million
- Positive organic net flows across multiple channels
- Improved operating leverage with underlying cost to income ratio at 69.8%
Full summary
Australian Ethical Investment Ltd announced record FY26 earnings, with underlying profit after tax (UPAT) attributable to shareholders rising 15% to $27.3 million and net profit after tax (NPAT) up 29% to $25.7 million. Revenue increased 9% to $129.5 million, driven by growth in funds under management (FUM) and positive organic net flows across multiple channels. The company experienced a 13% increase in organic net flows, with superannuation net flows of $527 million, middle-market net flows of $54 million, and institutional net flows of $173 million. The underlying cost to income ratio improved by 1.6 percentage points to 69.8%, reflecting continued operating leverage improvements. The directors declared a fully franked final dividend of 10 cents per share, bringing total FY26 dividends to 18 cents per share, up 29%.
Guidance
FY27 revenue margins expected to remain consistent with FY26 at 0.89%, underlying expense growth targeted below revenue growth
Outlook
Positive net flows expected to continue in FY27, supported by superannuation business and middle-market channel momentum. Investment in strategic initiatives to improve efficiency and customer engagement.