Computershare (CPU) H1 2025 earnings summary

Executive summary

• Delivered strong 1H25 results with management EPS up 18.7% year-over-year, driven by recurring fees, transaction revenues, and resilient margin income despite lower yields.

• Net profit after tax attributable to members rose 173.5% to $287.8 million, supported by strong core business performance and absence of prior period impairment charges.

• Sale of U.S. Mortgage Services completed in May 2024, highlighting robust performance of core businesses and impacting segment results.

• Upgraded FY25 management EPS guidance to $1.35 per share, a 15% increase year-over-year.

• Interim dividend per share increased 12.5% to AUD 0.45, reflecting balance sheet strength and higher shareholder returns.

Financial highlights

• Management revenue up 6.4% to $1.5bn and management EPS over 20% higher versus pro forma PCP.

• EBIT ex MI margin expanded by 230 bps to 15.5%; EBIT ex MI up nearly 28%.

• Margin income was resilient at $393 million, down less than 1% despite rate cuts.

• Management MPAT up 16% to $383.6 million; statutory MPAT up 174% to $287.8 million.

• Free cash flow reached $329.1 million, up 2.2% proforma.

Outlook and guidance

• FY25 management EPS now expected at $1.35 per share, up 15% year-over-year.

• Margin income guidance upgraded by $15 million to $760 million for FY25; average client balances expected at $30.2 billion.

• EBIT ex MI expected to rise around 30% for the year.

• 2H25 margin income expected to be lower due to anticipated interest rate cuts.

• Restructuring and digitization programs underway to drive operational efficiencies and address stranded costs.