Challenger (CGF) H2 2025 earnings summary

Executive summary

• Celebrated 40th anniversary, emphasizing experience in retirement and financial security for Australians.

• Achieved strong growth in FY25 with normalised NPAT of AUD 456 million, up 9% year-over-year, and statutory NPAT of AUD 192 million, up 48%.

• Delivered a full-year dividend of AUD 0.295 per share, representing 11% growth compared to the prior year.

• Business model simplified, customer relationships strengthened, and new partnerships secured, including with Insignia Financial and Mitsui Sumitomo Primary Life.

• Digital transformation and technology investments underway to future-proof operations and accelerate sales growth.

Financial highlights

• Normalised net profit after tax (NPAT) of AUD 456 million, up 9% year-over-year; statutory NPAT of AUD 192 million, up 48%.

• Normalised earnings per share (EPS) of AUD 0.663, up 9%; dividend increased 11% to AUD 0.295 per share.

• Return on equity (ROE) of 11.8%, above target; cost-to-income ratio improved to 32.3%, lowest ever for a full year.

• Life normalised NPAT grew 6% to AUD 461 million; Funds Management normalised NPAT up 41% to AUD 53 million.

• Record retail lifetime annuity sales of AUD 1.1 billion and record Japanese sales of AUD 984 million.

Outlook and guidance

• FY 2026 normalised EPS guidance range of AUD 0.66–0.72 per share, implying 4% growth at the midpoint.

• FY26 group normalised NPAT expected between AUD 455 million and AUD 495 million.

• Confident in sustaining normalised ROE above target and maintaining cost discipline.

• Capital reforms expected to lower capital intensity, reduce cost of capital, and unlock product innovation.

• Guidance assumes no material change in share count and is based on current prudential settings.