HMC Capital (HMC) H2 2025 earnings summary

Executive summary

• FY 2025 saw exceptional deal generation, value creation, and the ASX listing of DigiCo Infrastructure REIT, expanding digital and AI exposure.

• Landmark Sigma–Chemist Warehouse merger, Neoen renewable energy acquisition, and major fund launches drove record AUM and operating earnings growth.

• AUM rose 47% to $18.7 billion as of June 2025, with three new funds management divisions established.

• Pre-tax operating EPS grew 51% year-over-year to $0.56, with strong contributions from private equity and funds management.

• Despite operational success, share prices of listed REITs declined, prompting management focus on improved outcomes.

Financial highlights

• Total revenue increased 113% to $403.5 million, with management fees up 84% and performance/other fees up 460% year-over-year.

• Funds management EBITDA surged 160% to $102.6 million, driven by new credit and digital divisions.

• Pre-tax operating earnings for FY 2025 were $225 million, or $0.56 per share.

• Investment income totaled $159 million, including $123 million from the capital partner's fund.

• Final dividend of $0.06 per share, full-year dividend $0.12 per share, partially franked.

Outlook and guidance

• FY 2026 pre-tax earnings targeted at least $0.40 per share, reflecting a 29% CAGR since FY 2020.

• Real estate targeting 15% EBITDA growth, private credit 20%, private equity aiming for 15% returns.

• Dividend guidance for FY 2026 remains at $0.12 per share, with retained earnings reinvested for growth.

• Digital and Energy Transition divisions expected to contribute more as platforms mature.