HMC Capital (HMC) H1 2026 earnings summary

Executive summary

• Strong operational momentum with recurring funds management earnings and AUM rising to AUD 19.5 billion, up AUD 600 million since June 2025, led by Energy Transition (+30%) and Private Credit (+13%).

• Diversified earnings from private credit, digital, and Energy Transition verticals, with robust balance sheet and resilient recurring earnings base despite market volatility.

• Operating EPS (pre-tax) was 10.1c, supported by higher recurring income; including a $35m capital charge from the KKR partnership, EPS rises to 18.6c.

• Acquired Neoen's Victorian renewable energy portfolio for $950.0 million, classified as held-for-sale at 31 December 2025.

• Strategic partnership with KKR in Energy Transition, reducing balance sheet exposure and providing significant committed capital.

Financial highlights

• Operating earnings before tax for H1 FY26 were AUD 41.6 million, or AUD 0.101 per share, down from AUD 202.2 million year-over-year.

• Management fee revenue increased 34% year-over-year to $84.5 million, driven by AUM growth in real estate and private credit.

• Interim dividend of AUD 0.06 per share declared, partially franked, payable in April 2026.

• Investment income of AUD 15.9 million, mainly from distributions from HDN and DGT.

• Net liquidity position of AUD 1.6 billion, with strengthened balance sheet and extended debt facility to November 2027.

Outlook and guidance

• FY26 funds management EBITDA guidance of AUD 85 million reaffirmed, with double-digit growth in real estate and private credit.

• Investment income expected to be at least AUD 85 million, driven by co-investment distributions and Energy Transition valuation gains.

• Pre-tax operating EPS target of at least AUD 0.40 per share for FY26; dividend guidance maintained at AUD 0.12 per share.

• Group EBITDA expected to reach approximately AUD 170 million in FY26.

• $35m capital charge from KKR partnership in Energy Transition expected in 2H FY26, subject to transaction close.