Highlights

  • AUB Group (ASX:AUB) reported underlying net profit after tax of A$224.6 million in FY26, up 12.2%.
  • Revenue increased 6.4% to approximately A$1.6 billion, with group EBIT Margin expanding to 36.1%.
  • The company increased its full-year Dividend by 7.7% to 98 cents per share.
  • FY27 underlying NPAT guidance was provided at A$245 million to A$265 million, indicating further Earnings growth.

AUB Group (ASX:AUB) has delivered a record FY26 financial performance, supported by earnings growth across its insurance broking and agency businesses, improving margins and continued expansion across its international operations.

The insurance broker continues building its position as a diversified, capital-light financial services platform, with growth supported by organic expansion, acquisitions and increasing technology adoption.

FY26 Performance

For the year ended 30 June 2026, AUB reported underlying net profit after tax of A$224.6 million, representing growth of 12.2%.

Revenue increased 6.4% to approximately A$1.6 billion, while underlying Earnings Per Share increased 7% to A$1.8369.

The group EBIT margin expanded by 140 basis points to 36.1%, highlighting continued focus on operational efficiency and profitability.

The Board increased the full-year dividend by 7.7% to 98 cents per share, including a final dividend of 71 cents.

Business Performance

AUB’s Australian Broking division remained the largest contributor to group earnings.

Revenue increased approximately 6% to A$647.8 million, while EBIT increased 6.8% to A$246.7 million. The division maintained a strong EBIT margin of 38.1%.

The Agencies Business also delivered growth, with EBIT increasing 7.8% to A$105.2 million and margins reaching 43.7%.

BizCover continued to perform strongly, with Revenue increasing 14% and EBIT rising 19%. The digital insurance platform recorded active clients growth of 13.7% to approximately 308,000.

International Growth

AUB’s international division delivered strong earnings momentum during FY26.

Revenue increased 6.2%, while EBIT surged 24.5%. The division’s margin expanded 410 basis points to 27.6%, supported by progress across the Tysers business.

The result highlights the potential benefits from AUB’s international expansion strategy and integration of acquired businesses.

New Zealand remained a weaker area, with profit declining 3.9% in Australian-dollar terms and margins narrowing to 33.1%.

FY27 Outlook

AUB provided FY27 underlying net profit after tax guidance of A$245 million to A$265 million.

The guidance represents expected growth of approximately 9.1% to 18% compared with FY26 and reflects continued organic growth, Acquisition contributions and expected benefits from recent strategic initiatives.

The company expects further benefits from the Prestige acquisition in the United Kingdom, although full synergy benefits are expected from FY2028 following regulatory approvals.

Management also highlighted technology and productivity initiatives, including broad adoption of artificial intelligence tools and automation capabilities aimed at improving operational efficiency.

Growth Drivers

AUB’s Long-term Growth strategy is supported by the structural characteristics of insurance broking.

As a fee-based business, AUB benefits from commercial insurance market activity without directly carrying Underwriting risk.

The company continues expanding through acquisitions, technology Investment and growth across its broking, agency and international platforms.

Industry consolidation also provides opportunities for larger Brokers with the scale and resources to integrate smaller networks.

Key Risks

AUB remains exposed to changes in the commercial insurance pricing environment, which can influence organic growth.

Potential risks include softer insurance premium cycles, foreign exchange movements, higher funding costs and challenges associated with integrating acquisitions.

New Zealand’s recent performance also remains an area investors will monitor closely.

While FY27 guidance indicates continued growth, delivery against expectations will be important for any potential valuation re-rating.

Outlook

AUB Group enters FY27 with record earnings, expanding margins and a diversified operating platform.

The company’s ability to deliver on its profit guidance, maintain international momentum and continue improving productivity will be central to the next stage of its growth journey.

For investors, the key question remains whether AUB’s consistent earnings growth and improving business profile can translate into stronger market recognition.