Future Generation Australia (FGX) H2 2025 earnings summary

Executive summary

• Achieved a 14.1% portfolio return in FY2025, outperforming the All Ordinaries by 3.5% year-over-year.

• Dividend yield was 5.3% on share price, grossing up to mid-7% with franking credits, and the fully franked dividend increased for the eleventh consecutive year to 7.2 cents per share.

• Share price trades at an 8-9% discount to NTA, with ongoing efforts to close this gap.

• Over AUD 5.7 million donated to youth-focused and social impact charities in 2025, with cumulative donations nearing AUD 50 million.

• Since inception, annualized return is 9.8%, about 1.2% above the index, with 17% lower volatility.

Financial highlights

• Operating profit before tax rose to $71.3 million, with after-tax profit at $52.9 million for FY2025.

• Portfolio outperformed the market by 3.5–4 percentage points, driven by strong small and mid-cap performance.

• Fee and expense savings totaled AUD 11.4 million in 2025, enabling significant charitable donations.

• Since inception, paid 81.6 cents per share in dividends (including franking credits).

• Fully franked dividend yield for FY2025 was 5.1–5.3%; grossed-up yield reached 7.3%.

Outlook and guidance

• Portfolio positioned defensively with 25% cash amid market uncertainty and potential rate hikes.

• Expectation for interest rate cycle to level out and potential for US rate cuts in the second half of the year.

• Ongoing focus on diversification, risk management, and delivering sustainable, growing dividends.

• Focus on supporting vulnerable children through refined philanthropic strategy.