Navigator Global Investments (NGI) H1 2025 earnings summary

Executive summary

• 100% of revenues are from alternative asset management, with a portfolio of 11 partner firms managing over $79 billion in AUM, up 5% in USD and 12% in AUD as of 31 December.

• Adjusted EBITDA rose 16% year-over-year to USD 41.1 million for the six months ended 31 December 2024, driven by strong performance fee revenue and steady management fee growth, especially at Lighthouse.

• Ownership-adjusted AUM reached USD 27.1 billion as of 31 December 2024, up 4% year-over-year and 3% from 30 June 2024, reflecting steady net inflows and strong investment performance.

• The business remains highly diversified, with 11 partner firms and over 205 products across 43 alternative investment strategies, providing low correlation to global equity and fixed income markets.

• Net profit after tax was USD 68.8 million, a significant increase from USD 10.0 million in the prior period, reflecting higher revenues and fair value gains.

Financial highlights

• H1 FY25 revenue was USD 92.3 million, up 28% year-over-year; Adjusted EBITDA was USD 41.1 million, up 16% year-over-year.

• Management fee revenue increased 4% year-over-year to USD 43.5 million; performance fee revenue surged 403% to USD 31.7 million.

• Statutory NPAT surged to USD 68.8 million, up 589% year-over-year, mainly due to unrealized gains in the fair value of investments.

• Net assets increased to USD 733.3 million, up 11% from 30 June 2024.

• Basic statutory EPS rose to 15.3 cents, up 283% year-over-year.

Outlook and guidance

• Full-year FY25 earnings expected to exceed FY24, subject to market conditions and timing of revenue receipts.

• Higher net inflows anticipated in 2025 due to strong investment performance, new product launches, and positive allocator sentiment.

• Management targets one to two new partner firm investments per year, focusing on diversification and scale.

• Continued growth expected in Lighthouse's North Rock and Mission Crest hedge fund products, seen as key drivers.

• NGI Strategic business anticipated to deliver strong cash flows in the second half, with partner firms expected to maintain AUM growth.