Steadfast Posts $335M Net Profit, Up 47% with $157M Acquisition Gain
Steadfast Group Limited reported a robust 47% jump in statutory net profit for FY25, boosted by a significant one-time gain from acquiring Rothbury Group. The company also declared a fully franked final dividend of 11.7 cents per share.
- Statutory net profit after tax rises 47% to $334.9 million
- Underlying EBITA grows 12% to $591.4 million
- One-time $157.4 million profit from Rothbury Group acquisition
- Final dividend declared at 11.7 cents per share, fully franked
- Net tangible liabilities remain negative at -$0.38 per share
Strong Financial Performance Amid Strategic Acquisition
Steadfast Group Limited has delivered a standout financial performance for the year ended 30 June 2025, with revenues climbing 20% to $1.76 billion and statutory net profit after tax soaring 47% to $334.9 million. This surge was underpinned by a one-time gain of $157.4 million following the company’s acquisition of Rothbury Group, a move that significantly reshaped its investment portfolio.
Underlying earnings before interest, tax, and amortisation (EBITA) also showed solid growth, rising 12% to $591.4 million, reflecting steady operational momentum beyond the acquisition impact. Meanwhile, underlying net profit after tax increased 17% to $295.5 million, indicating that the core business remains on a healthy trajectory despite the adjustments for non-trading items.
Dividend Policy and Shareholder Returns
In line with its strong results, Steadfast declared a final dividend of 11.7 cents per share, fully franked at a 30% tax rate. This follows an interim dividend of 7.8 cents, maintaining a consistent shareholder return policy. The company’s Dividend Reinvestment Plan (DRP) will operate with a 2.5% discount, encouraging shareholders to reinvest in the company’s growth story.
Despite these positive earnings and dividend outcomes, net tangible liabilities per share remain negative at -$0.38, a figure that warrants attention as it reflects the company’s balance sheet structure and investment strategy, including goodwill and intangible assets.
Navigating Non-Trading Adjustments and Investment Portfolio Changes
The financial statements reveal several non-trading adjustments, including deferred and contingent consideration expenses and impairment charges related to the Sure Insurance acquisition and other investments. Notably, the company recorded mark-to-market gains and losses within its investment portfolio, reflecting the dynamic nature of its holdings.
These adjustments, while complicating the headline figures, provide transparency on the underlying health and risks of Steadfast’s diversified financial services operations. The sizeable one-time profit from Rothbury’s acquisition highlights the strategic importance of this deal, but also raises questions about the sustainability of such gains in future periods.
Outlook and Market Implications
Steadfast’s FY25 results position it well within the competitive insurance broking and financial services aggregation sector. The company’s ability to integrate acquisitions like Rothbury and maintain operational growth will be critical to sustaining momentum. Investors will be watching closely how the company manages its investment portfolio and balance sheet metrics going forward.
Bottom Line?
Steadfast’s impressive profit leap on acquisition gains sets a high bar, but sustaining growth beyond one-offs will be the true test.
Questions in the middle?
- How will Steadfast integrate Rothbury Group to drive future organic growth?
- What is the outlook for impairment risks within Steadfast’s investment portfolio?
- Can the company maintain dividend levels if one-time acquisition gains do not recur?
