Computershare FY25 Revenue Hits $3.1B, EBIT Ex-Margin Income Up 17.4%

Strong FY25 Performance

Computershare has reported a solid set of full-year results for FY25, demonstrating resilience and growth across its core businesses. Management earnings per share (EPS) rose 15% to 135.1 cents, comfortably in line with the upgraded guidance issued earlier in the year. This growth was driven by a 17.4% increase in EBIT excluding margin income, with margins expanding by 150 basis points to 17.5%, reflecting operational efficiencies and revenue mix improvements.

The company’s total revenue climbed 4.4% to $3.1 billion USD, supported by growth in recurring client fees and transactional revenues. Margin income, a key component of Computershare’s earnings, was slightly down 2.8% but remained resilient due to an 8% increase in client balances, which helped offset the impact of lower interest yields.

Capital Management and Shareholder Returns

Computershare’s capital-light business model continues to generate strong cash flow, enabling the company to fund innovation, acquisitions, and shareholder returns simultaneously. In FY25, the company completed a $750 million share buyback program at an average purchase price of AUD 29.59, boosting EPS accretion. Dividends were increased by 14.3% to 48 Australian cents per share, reflecting confidence in the company’s cash generation and future prospects.

Strategic Acquisitions and Cost Discipline

The company’s growth was further supported by recent acquisitions, including Ingage IR Ltd, CMi2i Ltd, and BNY Trust Company of Canada, which contributed to revenue and earnings expansion. Meanwhile, cost management remained a priority, with operating expenses growing only 2.2% despite inflationary pressures. The company achieved $86 million in cost-out benefits in FY25, underpinning margin expansion and profitability.

Outlook for FY26

Looking ahead, Computershare has provided positive guidance for FY26, expecting management EPS to increase by around 4% to approximately 140 cents per share. EBIT excluding margin income is forecast to grow about 5%, while margin income is projected to be around $720 million, supported by average client balances of $30.2 billion. The company anticipates lower interest expenses due to declining rates and improved debt pricing, alongside a stable tax rate between 24% and 25%.

This outlook assumes broadly stable capital markets and incorporates the benefit of ongoing hedging strategies that insulate a significant portion of margin income from interest rate volatility. Computershare’s strong balance sheet and low leverage provide ample capacity for further investment and shareholder rewards.