Key Highlights

  • Underlying Revenue increased 15.3% to $2.10 billion, while underlying EBITA rose 13.8% to $669.8 million.
  • Underlying diluted EPS based on NPAT increased 7.7% to 28.8 cents per share.
  • The fully franked final Dividend increased 9.0% to 12.75 cents per share, taking FY26 dividends to 20.95 cents.
  • FY27 guidance targets underlying EBITA of $700 million to $715 million and 4%-8% growth in underlying diluted EPS.

Steadfast Group (ASX:SDF) reported higher underlying Earnings for FY26, with underlying revenue increasing 15.3% to $2.10 billion and underlying EBITA rising 13.8% to $669.8 million. Underlying diluted EPS based on NPAT increased 7.7% to 28.8 cents per share. The company's final fully Franked Dividend was also increased to 12.75 cents per share from 11.70 cents, although statutory NPAT declined to $269.1 million from $334.9 million due to non-trading gains and losses included in the statutory result.

Underlying Earnings Growth

Steadfast's underlying NPAT increased 8.2% to $319.5 million in FY26, while underlying NPATA rose 7.1% to $366.3 million. The company reported underlying EBITA of $669.8 million, representing 13.8% growth from FY25.

Underlying EBITA growth comprised 5.0% organic growth, 4.4% from acquisitions and another 4.4% from increased Equity holdings. This combination contributed to higher earnings across the group's insurance broking, Underwriting agency and international operations.

The statutory result moved in the opposite direction. Statutory NPAT was $269.1 million, down from $334.9 million in FY25. The company distinguishes this measure from its underlying figures because statutory NPAT includes non-trading gains and losses.

Australasian Broker Network

Steadfast's Australasian broker networks generated gross Written Premium of $13.2 billion during FY26, an increase of 6.2%. Underlying EBITA for the Networks increased 13.2%, with acquisitions accounting for 10.5% of that growth.

The company continued implementing its broker hubbing strategy, which is intended to improve operational efficiency and reduce duplicated costs across the network. The strategy formed part of the group's broader focus on operating efficiency and Margin development.

Underwriting Agencies

Steadfast Underwriting Agencies generated $2.5 billion in gross written premium, up 2.3% from FY25. The segment produced underlying EBITA of $260.8 million.

During FY26, the Business undertook a consolidation program focused on operating and Capital efficiencies. The company said it continued to focus on underwriting discipline, retention of existing business, targeted new business and expense management.

International Operations

Steadfast International generated underlying EBITA of $29.8 million, compared with $5.9 million in FY25, representing an increase of $23.9 million.

Growth was supported by higher profit-sharing and network membership fees from ISU Steadfast, continued expansion of HWS Specialty and contributions from acquisitions. The international business also benefited from new Marine business, the contribution from Novum and two minority equity investments in ISU Steadfast network agencies during the second half.

Dividend and FY27 Guidance

Steadfast increased its total FY26 fully franked dividend to 20.95 cents per share from 19.50 cents, representing growth of 7.4%. The final dividend of 12.75 cents per share is 9.0% higher than the 11.70 cents paid for the corresponding period last year.

The final dividend has an ex-dividend date of 2 September 2026, a Record Date of 3 September and a payment date of 25 September. The Dividend reinvestment Plan will not apply to the final FY26 distribution.

For FY27, Steadfast expects underlying NPATA of $382 million to $392 million, underlying NPAT of $333 million to $343 million and underlying EBITA of $700 million to $715 million. The company is targeting 4%-8% growth in underlying diluted EPS on both NPAT and NPATA measures.

The guidance assumes a 2%-3% increase in Australian insurance premium pricing and remains subject to the risks and uncertainties identified by the company.

Scheme Implementation Agreement

Steadfast has also entered into a Scheme Implementation Deed with Amwins Australasia Group and Starboard BidCo. The Steadfast Board unanimously recommends that shareholders vote in favour of the proposed scheme, subject to the absence of a superior proposal and the independent expert concluding that the transaction is in shareholders' best interests.

The transaction remains subject to the relevant conditions and Shareholder process.

Conclusion

Steadfast Group's FY26 underlying results show continued increases in revenue, EBITA, NPAT, NPATA and diluted EPS, supported by organic growth, acquisitions and increased equity holdings. The fully franked dividend also increased, while statutory NPAT declined because of non-trading items included in that measure. For FY27, the company is targeting further growth in underlying earnings and EPS, with insurance premium pricing, Acquisition activity, operating performance and the broader insurance market among the factors relevant to the reported guidance.