Computershare has reported a robust FY25 with a 15% increase in Management EPS and a 14.3% hike in its final dividend, underpinned by growth across all core businesses and a streamlined, capital-light strategy. The company signals continued momentum into FY26 with expected earnings growth and recovering transaction volumes.
- Management EPS up 15% in FY25
- Revenue growth of 4.4% excluding divested US Mortgage Services
- EBIT margins expanded by 150 basis points to over 17%
- Completed AUD 750 million share buyback
- Final dividend increased by 14.3% to AUD 48 cents per share
Strong Earnings Growth and Strategic Execution
Computershare has delivered another year of solid financial performance in FY25, with Management EPS rising 15%, comfortably meeting the upgraded guidance announced earlier in the year. CEO Stuart Irving highlighted the company’s successful execution of its strategic plan to become a simpler, higher-quality, and capital-light business, which has enabled consistent earnings growth and strong returns for shareholders.
The company’s revenue, excluding the divested US Mortgage Services business, grew 4.4% to US$3.1 billion. This growth was supported by resilient margin income of US$759 million and an increase in average client balances to approximately US$30 billion. Lower interest rates helped stimulate client activity, while a prudent hedging strategy mitigated the impact of reduced yields.
Business Segment Highlights and Margin Expansion
All core business segments contributed to revenue and earnings growth. Issuer Services saw modest revenue increases despite subdued transaction volumes, with optimism for a rebound in M&A activity as the number of announced deals rose 11% by year-end. Corporate Trust stood out with over 8% growth in fee revenue, driven by increased mandates and higher revenue per deal, alongside a significant 600 basis point expansion in EBIT margins excluding margin income.
Employee Share Plans also delivered strong results, with revenues up 9% and EBIT rising over 15%, benefiting from full synergies from the Equatex acquisition and the widespread adoption of the EquatePlus platform. The growth in assets under management reflects the increasing use of equity-based remuneration, supporting long-term growth prospects.
Capital Management and Dividend Policy
Computershare completed a substantial AUD 750 million share buyback during FY25 at an average price of AUD 29.59 per share. However, the company signaled that future buybacks are unlikely in the short term due to Australian tax legislation making such programs less efficient. Instead, Computershare is focusing on organic growth, selective acquisitions, and technology investments.
Reflecting its strong earnings and confidence in future performance, the company increased its final dividend by 14.3% to AUD 48 cents per share, bringing the total dividend for FY25 to AUD 93 cents. The dividend is unfranked, with a record date set for 20 August 2025 and payment scheduled for 15 September 2025.
Outlook for FY26
Looking ahead, Computershare expects continued positive earnings growth in FY26, with initial guidance for Management EPS around 140 cents per share, a 4% increase. The company anticipates a recovery in transaction volumes and debt issuance, which should further support revenue growth and margin expansion. With a strengthened balance sheet and increased exposure to long-term growth trends, Computershare appears well positioned to sustain momentum and deliver enduring shareholder returns.
Bottom Line?
Computershare’s FY25 results set a strong foundation, but investors will watch closely for the anticipated recovery in transaction volumes and the impact of tax changes on capital returns.
Questions in the middle?
- Will the expected recovery in M&A and debt issuance volumes materialize in FY26?
- How will changes in Australian tax legislation affect Computershare’s future capital management strategies?
- Can Computershare sustain margin expansion amid evolving market conditions and competitive pressures?