Australian Ethical Investment (AEF) H1 2026 earnings summary

Executive summary

• Achieved all strategic milestones for the half, including major platform transitions, insurance harmonisation, and integration of Altius Fixed Income, laying foundations for future growth and maintaining a dual focus on purpose and profit.

• Achieved record half-year profits, with NPAT up 42% and UPAT up 25% year-over-year for H1 FY26, and celebrated 40 years of ethical investing.

• Funds under management reached $14.08 billion, up 6% year-over-year, driven by positive net flows and investment performance.

• Recognised with multiple industry awards for ESG leadership and sustainability, and continued advocacy for higher standards in corporate Australia.

• Board renewal continued, with new appointments and a structured succession plan.

Financial highlights

• Underlying profit after tax increased 25% to $14.4 million; net profit attributable to shareholders up 42% to $13.3 million year-over-year.

• Underlying revenue rose 13% to $65.8 million, driven by 18% average FUM growth, while operating costs increased 9%, improving cost-to-income ratio to 68.8% from 71.8%.

• Funds under management reached $14.08 billion at December 2025, with superannuation FUM at $9.98 billion and investments FUM at $4.11 billion.

• Interim dividend of 8 cents per share, up 60% from prior interim period; annual payout ratio target remains at 80%.

• Diluted UPAT EPS rose 24% to 12.54 cents, and diluted NPAT EPS rose 41% to 11.60 cents year-over-year.

Outlook and guidance

• Expect continued positive net flows in superannuation, supported by super guarantee contributions and digital enhancements, with stable revenue margin at 0.91% in the second half.

• Full-year FY26 cost-to-income ratio expected to improve by at least 1% over FY25, despite higher anticipated second-half expenses.

• Medium-term focus on digital experience, direct marketing, new product innovation, and expanding distribution channels to drive growth.

• Continued investment in business platform, including a new superannuation app and completion of investment management platform upgrades.

• No immediate need for further M&A, but open to accretive opportunities.