Argo Global Faces Profit Volatility Amid Market Value Losses
Argo Global Listed Infrastructure Limited has reported a sharp 72% decline in half-year profit for the period ending December 2025, driven by unrealised fair value losses on its investment portfolio. Despite this, the company has declared a higher fully franked interim dividend of 4.5 cents per share.
- 72% decrease in half-year profit to $13.9 million
- 67% drop in investment income to $23.4 million
- Interim fully franked dividend increased to 4.5 cents per share
- Net tangible asset backing per share stable at $2.62
- Profit decline mainly due to unrealised fair value losses on investments
Half-Year Financial Performance
Argo Global Listed Infrastructure Limited (ALI) has revealed a significant downturn in its financial results for the half-year ended 31 December 2025. The company’s profit after tax plummeted by 72% to $13.9 million, compared with $49.5 million in the same period last year. This steep decline was primarily attributed to unrealised changes in the fair value of its investment portfolio, reflecting the inherent volatility of global infrastructure securities markets.
Investment income also fell sharply by 67%, dropping to $23.4 million from $69.8 million in the prior corresponding period. The company’s portfolio, diversified across major markets including the United States, Canada, Japan, Australia, and Spain, experienced valuation pressures that weighed on reported earnings.
Dividend Policy and Shareholder Returns
Despite the profit contraction, ALI’s board declared a fully franked interim dividend of 4.5 cents per share, up from 4.0 cents in the previous year. This increase signals the company’s commitment to delivering consistent income to shareholders, supported by its Dividend Reinvestment Plan and Dividend Substitution Share Plan. The dividend will be payable on 27 March 2026, with the record date set for 2 March 2026.
Net tangible asset (NTA) backing per share remained relatively stable at $2.62 as at 31 December 2025, compared to $2.65 a year earlier. This stability suggests that while market valuations fluctuated, the underlying asset base retained its value, providing a cushion for investors amid market volatility.
Operational and Market Context
ALI operates as a Listed Investment Company focused on global listed infrastructure securities, aiming to provide long-term capital growth alongside dividend income. The company’s results highlight the sensitivity of its earnings to market movements, particularly unrealised gains and losses which can cause significant swings in reported profit. This volatility is a known characteristic of investment companies with portfolios exposed to fluctuating global markets.
The company’s directors, including Chairman Peter Warne and Managing Director Jason Beddow, confirmed no material changes in operations or major contracts since the reporting period. The financial statements were audited by Ernst & Young, with no independence issues identified, reinforcing confidence in the reported figures.
Looking Ahead
While the half-year results reflect a challenging market environment, ALI’s stable NTA and increased dividend payout suggest a measured approach to navigating uncertainty. Investors will be watching closely for how the company manages portfolio risks and capitalises on recovery opportunities in global infrastructure sectors in the coming months.
Bottom Line?
ALI’s profit volatility underscores the challenges of market-driven valuations, but its dividend resilience offers a steady anchor for investors.
Questions in the middle?
- Will unrealised fair value losses continue to pressure profits in the next half-year?
- How might global infrastructure market conditions evolve to impact ALI’s portfolio performance?
- Could ALI adjust its dividend policy if market volatility persists?
