ASX Posts $510M Underlying Profit, Raises Dividend as Revenue Hits $1.11B

• Operating revenue up 7.0% to $1.11 billion
• Underlying net profit after tax increased 7.5% to $510 million
• Total expenses rose 7.2%, below guidance midpoint
• Fully franked dividend increased 7.4% to 223.3 cents per share
• ASIC Inquiry expected to add $25–35 million in FY26 expenses

Strong Financial Performance Despite Challenges

ASX Limited has reported a robust set of full-year results for FY25, with operating revenue climbing 7.0% to $1.11 billion and underlying net profit after tax rising 7.5% to $510 million. This growth was driven by solid performances across the Markets, Technology & Data, and Securities & Payments divisions, while the Listings business showed signs of renewed momentum after a period of stability.

Despite a 7.2% increase in total expenses, ASX managed to keep cost growth below the midpoint of its guidance range, reflecting disciplined expense management and strategic investment. The company declared a fully franked final dividend of 112.1 cents per share, bringing the total dividend for FY25 to 223.3 cents per share, up 7.4% year-on-year.

Navigating Regulatory Scrutiny and Operational Risks

ASX continues to grapple with heightened regulatory scrutiny following the CHESS Batch Settlement Incident in December 2024. The Australian Securities and Investments Commission (ASIC) launched an inquiry in June 2025 focusing on governance, capability, and risk management frameworks. ASX is cooperating fully and has mobilised a dedicated team to respond comprehensively. The inquiry is expected to conclude by March 2026, with ASX forecasting an additional $25 million to $35 million in related expenses for FY26.

Managing operational risk and resilience remains a key priority. To this end, ASX has introduced the Accelerate Program, a CEO-sponsored initiative aimed at fast-tracking strategic initiatives and uplifting leadership capability and risk culture across the organisation.

Technology Modernisation and CHESS Replacement Progress

Technology upgrades are central to ASX’s transformation strategy. The CHESS replacement project, a critical infrastructure upgrade, reached significant milestones in FY25, including the launch of the first industry test environment. ASX is targeting a go-live for Release 1 in Q4 FY26, less than a year away. This project is expected to enhance operational resilience and customer experience.

Alongside CHESS, ASX plans to introduce new data products in FY26 to provide deeper market insights, reinforcing its commitment to innovation and customer-centric solutions.

Market Activity and Outlook

Listings activity showed encouraging signs in the second half of FY25, with 30 new listings including notable IPOs such as Virgin Australia and Infragreen Group. Net new capital quoted increased by 27.9% to $35.6 billion, supported by secondary raisings and dual listings. Early FY26 trading activity remains strong, with cash market value up 20% in July 2025 compared to the previous year, driven by expectations of central bank rate cuts and geopolitical volatility.

While futures and options volumes declined slightly, the overall environment remains supportive, particularly with ongoing speculation around monetary policy and domestic debt issuance. ASX’s strategic focus on risk management, technology modernisation, and regulatory compliance positions it well to navigate the challenges ahead.

Bottom Line?

ASX’s FY25 results underscore resilience and growth, but the unfolding ASIC inquiry and technology upgrade timelines will be critical to watch.

Questions in the middle?

• How will the ASIC Inquiry’s findings impact ASX’s governance and operational practices?
• Can ASX deliver the CHESS replacement on schedule without further disruptions?
• What is the outlook for listings and trading volumes amid evolving market conditions?