Steadfast Delivers 17% Profit Surge and Boosts Dividend Amid Global Expansion
Steadfast Group has reported a robust 17.2% increase in underlying net profit after tax for FY25, alongside a 14% rise in its fully franked final dividend, underpinned by both organic growth and strategic acquisitions.
- Underlying NPAT up 17.2% to $295.5 million
- Final dividend increased 14% to 11.7 cents per share
- Underlying EBITA grew 11.9% driven by organic and acquisition growth
- International expansion with acquisitions in London and the USA
- FY26 guidance projects continued earnings growth and dividend strength
Strong Financial Performance Continues
Steadfast Group has once again demonstrated its resilience and growth momentum with a 17.2% rise in underlying net profit after tax (NPAT) to $295.5 million for the fiscal year ended June 30, 2025. This marks the 12th consecutive year of profit growth since the company’s 2013 listing, underscoring a consistent track record of delivering shareholder value.
The company’s underlying earnings before interest, tax and amortisation (EBITA) also climbed 11.9% to $591.4 million, supported by a combination of organic growth and strategic acquisitions. Organic growth contributed 8.8%, reflecting profitable expansion within existing businesses and improved operational leverage, while acquisitions added a further 3.1% to earnings.
Dividend Boost Reflects Confidence
Reflecting its strong financial position, Steadfast declared a fully franked final dividend of 11.7 cents per share, up 14% from the prior year. This increase signals management’s confidence in the company’s ongoing cash flow generation and commitment to rewarding shareholders. The dividend is eligible for the company’s Dividend Reinvestment Plan (DRP) at a 2.5% discount, offering investors an attractive option to compound their holdings.
International Expansion Accelerates
Steadfast’s growth story is increasingly global. In FY25, the group expanded its international footprint through key acquisitions, including H.W. Wood Limited and its associated operations in London, Greece, and France, now rebranded as HWS Specialty. This move enhances Steadfast’s capabilities in wholesale, retail, and reinsurance markets, particularly in niche sectors like marine, cargo, and fine art insurance.
Further strengthening its US presence, Steadfast acquired a majority stake in Novum Underwriting Partners LLC, a specialty underwriting agency and wholesale brokerage. These acquisitions complement the existing Australasian network and underpin the group’s strategy to diversify revenue streams and capture growth in international insurance markets.
Capital Management and Future Outlook
Maintaining a conservative approach to capital, Steadfast’s gearing ratio stood at a manageable 27% as of June 30, 2025, with the board increasing the maximum allowable gearing to 35% to support future acquisition opportunities. The group retains significant headroom in its credit facilities, ensuring flexibility to pursue growth while managing financial risk prudently.
Looking ahead, Steadfast has provided FY26 guidance projecting underlying NPATA between $365 million and $375 million, and underlying NPAT between $315 million and $325 million, anticipating a 6% to 10% increase in diluted earnings per share. This outlook assumes a 3% to 5% rise in insurance premium pricing in Australia, highlighting the importance of market conditions in shaping future performance.
Overall, Steadfast’s FY25 results reflect a well-executed growth strategy balancing organic development, disciplined acquisitions, and international expansion, positioning the group for continued success in a competitive insurance brokerage landscape.
Bottom Line?
Steadfast’s sustained growth and strategic acquisitions set the stage for another promising year, but market pricing and integration risks remain key watchpoints.
Questions in the middle?
- How will recent international acquisitions impact Steadfast’s earnings mix and margins in FY26?
- What risks could arise from the assumed 3%-5% insurance premium price increases in Australia?
- How might Steadfast’s increased gearing capacity influence its acquisition strategy and financial flexibility?
