Computershare (CPU) H2 2025 earnings summary

Executive summary

• Management EPS rose 15% year-over-year to 135.1 cents per share, in line with upgraded guidance, with EBIT ex Margin Income up 17.4% and margin expansion of 150bps.

• Revenue increased 4.4% to $3.1bn, driven by growth in recurring client fees and transactional revenues.

• Strategic focus on simplifying the group and recycling capital toward long-term growth trends, resulting in a capital-light, higher-quality business.

• Completed the sale of U.S. Mortgage Services in May 2024, with pro forma results excluding this business for comparability.

• Shareholder returns increased to $613 million in FY25, up 17% from the prior year, with a $750 million share buyback completed.

Financial highlights

• EBIT ex Margin Income was $411.9 million, up 17.4% year-over-year, with EBIT margin at 17.5%, up 150bps.

• Margin Income was $759.1 million, slightly ahead of expectations but down 2.8% year-over-year.

• Management Net Profit After Tax increased 11.6% to $793.8 million; statutory earnings up 72% to $607 million.

• Cash conversion rate improved to 66% of Management EBITDA, with free cash flow excluding SLS advances at $780.1 million.

• Operating costs rose 2.2%, below inflation, with $86 million in annualized synergy and cost savings.

Outlook and guidance

• FY26 Management EPS guidance is around 140 cents per share, a 4% increase, with EBIT ex MI expected to grow 5%.

• Margin income expected to decline by about 5% in FY26 to $720 million, with two-thirds of balances insulated from rate movements.

• Natural hedge from floating-rate debt expected to save $0.05 per share in FY26.

• Group tax rate expected between 24%-25%, with capital and debt markets to remain stable.

• Conservative guidance approach, with potential upside if client balances or event-driven revenues recover.