Key Highlights

  • Underlying profit after tax (UPAT) increased 6% to $217.0 million, with Corporate Trust UPBT up 9% and Asset Management UPBT up 3%.
  • Statutory net profit after tax rose to $88.9 million from a $58.2 million loss in FY25.
  • The Simplification Program delivered $72.6 million in annualised cost savings to date, ahead of the $60 million FY26 target.
  • Gross Debt was organically reduced by 15% over the 12 months to 30 June 2026, with a final unfranked dividend of $0.63 per share declared.

Perpetual Limited (ASX:PPT) reported FY26 Underlying Profit after tax (UPAT) of $217.0 million, up 6% on FY25, reflecting continued growth in Corporate Trust, improved Asset Management earnings, benefits from the company's Simplification Program and reduced funding costs. This was partially offset by higher Barrow Hanley distributions related to employee-owned units. Operating Revenue was stable year-on-year at $1,374.2 million, with revenue growth in Corporate Trust offset by lower Asset Management and Wealth Management revenue.

Statutory net profit after tax was $88.9 million, up from a $58.2 million loss in FY25, reflecting stronger underlying earnings, a reduction in Significant Items despite an Impairment recognised during the year, and the recognition of tax credits ahead of the completion of the Wealth Management sale. CEO and Managing Director Bernard Reilly said FY26 was a positive year despite mixed market conditions, with the company delivering Earnings growth and improved profitability against a backdrop of geopolitical uncertainty and corporate change.

Divisional Performance Across the Business

Asset Management reported UPBT of $207.5 million, up 3% on FY25, supported by higher average AUM from improved Equity markets and cost savings from the Simplification Program, though revenue fell 3% to $880.5 million, primarily due to unfavourable foreign currency movements. Total AUM was $224.4 billion at 30 June 2026, down 1% on FY25. Mr Reilly said stronger contributions from Barrow Hanley and the company's Australian boutiques were offset by net outflows at other international boutiques in the US and Europe.

Corporate Trust recorded UPBT of $98.8 million, 9% higher than FY25, with growth across all three of its Business lines. Total Funds Under Administration reached $1,349.3 billion, up 6% on FY25, while Digital and Markets' Assets under administration increased 14% to $638.6 billion. Wealth Management reported UPBT of $44.0 million, down 15% on FY25, mainly due to a decline in non-market-related revenue, continued Investment in staff and technology, and increased premises costs as the business prepares for separation.

Simplification Program and Debt Reduction

Perpetual's Simplification Program delivered a further $28.5 million in annualised cost savings during FY26, bringing cumulative savings since the program's inception in August 2024 to $72.6 million, ahead of the $60 million target for FY26 and tracking within the Group's target of $70-80 million by 30 June 2027. As at 30 June 2026, gross debt was $629.3 million compared with $738.5 million a year earlier, reflecting organic net debt repayments of $109.2 million and favourable foreign exchange movements, representing a 15% reduction in gross debt over the year.

Significant items, post-tax, were $128.1 million for FY26, primarily relating to transaction and separation costs associated with the proposed Wealth Management sale, Simplification Program costs, a $63.5 million non-cash impairment relating to TSW, and non-cash Amortisation of acquired intangibles, partly offset by a tax expense Credit recognised ahead of the proposed sale.

Wealth Management Sale and Dividend

Perpetual continues to progress toward completing conditions precedent for the sale of Wealth Management to Bain Capital Private Equity, LP, under a binding agreement signed in March 2026. This includes Bain Capital receiving ACCC approval and Perpetual obtaining required Australian Financial Services Licence variations, with Court proceedings underway to facilitate the transfer of assets, liabilities and undertakings. The transaction remains on track to complete within the final quarter of the 2026 calendar year, subject to satisfaction or Waiver of remaining conditions.

The Board declared a final dividend of $0.63 per share, unfranked, to be paid on 2 October 2026, bringing total FY26 dividends to $1.22 per share, representing a Payout Ratio of 65% of full-year UPAT, in line with the Board's target payout range of 60% to 90%. Separately, the company confirmed it has entered a non-disclosure agreement with Windflower Pte Limited, an entity understood to be indirectly controlled by EQT AB, to determine whether an improved proposal for Perpetual can be formulated, noting there is no certainty this process will result in a binding offer.

Conclusion

Perpetual's FY26 results reflect continued underlying earnings growth across its Corporate Trust and Asset Management divisions, supported by cost savings from its Simplification Program and meaningful debt reduction, even as Wealth Management earnings declined ahead of its planned divestment. With the sale of Wealth Management to Bain Capital progressing toward expected completion in the final quarter of calendar 2026, and separate discussions underway regarding a potential proposal from an EQT AB-linked entity, the company's near-term direction will be shaped significantly by the outcome of these corporate processes.