Euroz Hartleys H1 Profit Jumps 121%, Declares 2.5c Fully Franked Dividend
Euroz Hartleys reports a striking 121% jump in net profit for H1 FY2026, driven by booming equity capital markets activity and rising advisory fees. The company also lifts its interim dividend, signalling confidence amid cyclical market conditions.
- Net profit after tax surges 121% to $13.84 million
- Equity Capital Markets raisings climb 84% to $1.78 billion
- Interim dividend increased to 2.5 cents per share, fully franked
- Funds Under Management grow to $5.095 billion
- Brokerage and advisory revenues show solid gains
Strong Half-Year Performance
Euroz Hartleys Group Limited (ASX – EZL) has unveiled a robust set of unaudited results for the first half of the 2026 financial year, showcasing a remarkable turnaround in profitability. The company reported net profit after tax attributable to members of approximately $13.84 million, more than doubling the $6.25 million recorded in the same period last year. This 121% increase underscores the firm’s strengthened position in the competitive financial services sector.
Revenue for the half reached around $76.7 million, reflecting a healthy expansion across multiple business lines. The company’s Executive Chairman, Andrew McKenzie, attributed this success to a strong team culture and strategic focus on market share growth.
Equity Capital Markets Drive Growth
The standout contributor to Euroz Hartleys’ performance was its Equity Capital Markets (ECM) division. The firm completed ECM raisings totaling approximately $1.78 billion during the half, an 84% increase compared to the previous corresponding period. This surge in capital raising activity translated into a 56% rise in ECM-related revenues, highlighting the firm’s leverage to buoyant market conditions, particularly in the metals and mining sector.
Alongside ECM, advisory revenues improved with notable transactions involving Ramelius Resources, SRG Limited, and Alkane Resources. Brokerage revenues from both Capital Markets and Private Wealth also climbed, with total brokerage revenue up 31% year-on-year, reflecting broader client engagement and market activity.
Growing Recurring Revenues and Strong Balance Sheet
Euroz Hartleys continues to build its recurring revenue base, with Funds Under Management (FUM) rising to approximately $5.095 billion as of 31 December 2025, up from $4.449 billion six months earlier. This growth in FUM provides a more stable income stream amid the cyclical nature of ECM activity.
The company’s balance sheet remains robust, with cash holdings of about $71.1 million and investments of $23.2 million. This financial strength not only supports ongoing business activities but also differentiates Euroz Hartleys from competitors, reinforcing confidence among its adviser network and clients.
Dividend and Outlook
Reflecting its strong performance, the Board declared a fully franked interim dividend of 2.5 cents per share, a modest increase from prior payouts. However, the Dividend Reinvestment Plan will not be active for this interim dividend. McKenzie emphasised the company’s commitment to returning value to shareholders, having distributed $354.2 million in fully franked dividends and $63 million in capital over its 26-year history.
Despite the upbeat results, Euroz Hartleys remains cautious about the second half of the financial year, noting that ongoing performance will depend heavily on market sentiment, commodity prices, and ECM activity. The cyclical nature of these factors means investors should watch closely for shifts in the broader economic environment.
Bottom Line?
Euroz Hartleys’ strong first half sets a high bar, but market cycles will test its momentum in the months ahead.
Questions in the middle?
- Will the second half maintain the momentum amid volatile commodity prices?
- How will Euroz Hartleys navigate potential shifts in ECM activity and IPO pipelines?
- What strategies will the company deploy to further grow recurring revenue streams?
