Ryder Capital has reported a remarkable 227% increase in comprehensive income for the half-year ending December 2025, alongside a record net tangible asset growth and a new quarterly dividend policy.
- Comprehensive income after tax rises to $42.53 million, up 227%
- Pre-tax net tangible assets per share climb to $2.2476, a 46.55% return
- Introduces quarterly fully franked dividends of 3.0 cents per share
- Portfolio outperforms ASX Small Ordinaries Accumulation Index by a wide margin
- Company positions for ongoing market volatility with high liquidity and value focus
Record Profits and Asset Growth
Ryder Capital Ltd has delivered an exceptional financial performance for the six months ending 31 December 2025, reporting a total comprehensive income after tax of $42.53 million. This figure represents a staggering 227% increase compared to the prior corresponding period, underscoring the company’s robust investment strategy and portfolio management.
The company’s pre-tax net tangible assets (NTA) per share surged to $2.2476 from $1.6272 at the end of June 2025, reflecting a 46.55% return over the half-year. This growth was achieved despite a fully franked dividend payment of 5.5 cents per share during the period, highlighting strong underlying portfolio performance.
Dividend Policy Enhancement
In response to these strong results and a positive outlook, Ryder Capital’s board has introduced an enhanced dividend policy. Starting with the December 2025 quarter, shareholders will receive quarterly fully franked dividends of 3.0 cents per share, equating to an annualised dividend of 12.0 cents. This marks a significant shift towards more frequent and predictable income distributions, reflecting confidence in the company’s ongoing earnings capacity.
The company’s franking account balance and retained profits reserves are at record levels, supporting this new dividend approach. The next dividend declaration is expected at the end of the March quarter, providing investors with a clear income stream moving forward.
Portfolio Outperformance and Market Context
Ryder Capital’s portfolio delivered a gross performance of 54.65% over the six-month period, substantially outperforming the ASX Small Ordinaries Accumulation Index’s 17.39% return. This outperformance highlights the company’s ability to generate alpha in a competitive market environment.
Looking ahead, Ryder acknowledges ongoing market volatility driven by elevated valuations, geopolitical tensions, and domestic economic challenges such as persistent inflation. The company is strategically positioned with historically high cash levels and a focus on profitable, value-oriented companies to navigate potential turbulence.
Strategic Positioning Amid Uncertainty
Ryder Capital’s management anticipates that the Reserve Bank of Australia may need to tighten monetary policy further, contrasting with easing trends in other developed economies. This dynamic, combined with geopolitical uncertainties and evolving technology trends, creates a complex backdrop for investors.
Despite these challenges, Ryder views potential market corrections as opportunities to deploy capital into high conviction investments. The company’s disciplined approach aims to balance capturing gains with maintaining liquidity and flexibility in an uncertain environment.
Bottom Line?
Ryder Capital’s record results and dividend upgrade set a confident tone, but upcoming market volatility will test its strategic resilience.
Questions in the middle?
- How sustainable is Ryder’s elevated dividend policy amid potential market downturns?
- What specific sectors or holdings are driving Ryder’s outsized portfolio returns?
- How will Ryder adjust its strategy if inflation and interest rates continue to rise domestically?