Computershare (ASX:CPU) Announces FY25 Financial Results
Financial Performance
Computershare reported FY25 revenues of $3.1 billion, up 4.4% compared to FY24, excluding the sale of US Mortgage Services. Margin Income reached $759 million, exceeding expectations. EBIT ex MI increased by 17%, with margins expanding by 150 basis points to over 17%. The company achieved a Return on Invested Capital (ROIC) of over 35%.
Business Highlights
Client fee revenues rose over 4%, while event and transaction revenues increased by more than 13%. Issuer Services saw Register Maintenance revenues grow over 3%, and Corporate Action revenues were up 4%. Corporate Trust was a standout, with fee revenue increasing by over 8%. Employee Share Plans achieved a 9% revenue increase, and Management EBIT rose by over 15%.
Dividend Declaration
Computershare completed a AUD 750 million share buyback in FY25. The final dividend was increased to AUD 48 cents per share, totaling AUD 93 cents for the year, a 14.3% increase from the prior year.
FY26 Outlook
The company expects Management EPS to reach approximately 140 cents per share, up 4%. With a strengthened balance sheet and ongoing growth in core businesses, Computershare is positioned for continued growth and enduring shareholder returns.
Executive Comments
Stuart Irving, CEO, noted, “Computershare has delivered another year of strong earnings growth, with Management EPS up 15%. Results are in line with the earnings guidance we upgraded in February. We are executing well on the strategic plans we made to build a simpler, higher quality and capital light Computershare, that can deliver consistent results and enduring returns for shareholders.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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