Future Generation Australia (FGX) H1 2025 earnings summary

Executive summary

• Achieved strong investment performance despite challenging market conditions, with a 4.9% portfolio increase in July and 11.3% over 12 months, outperforming key indices.

• Reported operating profit before tax of $19.0 million and after tax of $13.3 million for the half year ended 30 June 2025, down from $29.6 million and $23.3 million respectively in HY2024.

• Increased fully franked dividend for the 10th consecutive year, with a 5.5% yield (7.9% grossed up), reflecting board confidence in the investment strategy.

• Undertook a comprehensive review of philanthropic strategy, shifting focus to support vulnerable children aged 0–14, with 11 new social impact partners selected from 329 applicants.

• Social impact investment of $5.7 million to be made in 2025, bringing total since inception to $49.0 million.

Financial highlights

• Annualised fully franked interim dividend of 7.2 cents per share for FY2025, with a yield of 5.5% based on the 8 September 2025 share price of $1.315 per share.

• Grossed-up dividend yield, including franking credits, stands at 7.9% based on a 30% tax rate.

• 12-month investment portfolio performance reported at +11.3% before expenses, fees, and taxes as of 31 July 2025.

• Profit after tax was $13.3 million (HY2024: $23.3 million); basic and diluted EPS was 3.26 cents (HY2024: 5.73 cents).

• NTA before tax at 30 June 2025 was $1.39 per share (Dec 2024: $1.40); after tax, $1.34 per share (Dec 2024: $1.34).

Outlook and guidance

• Board declared an increased fully franked interim dividend of 3.6 cents per share, annualized yield of 5.9% (grossed-up 8.4%) on 30 June 2025 share price.

• Company maintains 5.8 years of dividend coverage based on profits reserve.

• Portfolio is well positioned due to diversification, active management, and a strong investment committee.

• Small and mid-cap stocks expected to continue outperforming large caps, with materials and quality industrials highlighted as key sectors.

• Focus remains on capital growth and income through semi-annual franked dividends.