Navigator Reports 17% Rise in Adjusted EBITDA, AUM Hits USD29 Billion
Navigator Global Investments reported a 17% rise in adjusted EBITDA to USD48.2 million for H1 FY26, driven by strong performance fees and asset growth, though full-year earnings face headwinds.
- Adjusted EBITDA up 17% to USD48.2 million
- Assets under management increased 5% to USD29 billion
- Revenue grew 17% to USD108.3 million
- Strong earnings growth from Lighthouse and NGI Strategic segments
- FY26 earnings expected lower than FY25 due to NGI Strategic outlook
Robust Half-Year Growth
Navigator Global Investments Limited (ASX: NGI) has delivered a solid financial performance for the half-year ended 31 December 2025, with adjusted EBITDA climbing 17% to USD48.2 million. This growth reflects a combination of rising assets under management (AUM), which increased 5% to USD29 billion, and a 17% boost in revenue to USD108.3 million. The company’s diversified portfolio of alternative asset managers continues to benefit from ongoing market volatility, which has supported strong investment returns and fee income.
Drivers Behind the Numbers
The earnings uplift was largely propelled by the performance of two key business segments: Lighthouse Investment Partners and NGI Strategic. Lighthouse saw a 9% increase in earnings to USD28.9 million, underpinned by risk-adjusted returns that outperformed their three- and five-year averages. Meanwhile, NGI Strategic’s earnings surged 32% to USD19.3 million, driven by higher cash distributions. Performance fees from Lighthouse rose 16%, while NGI Strategic’s fees normalized after a particularly strong previous year.
Outlook and Market Context
Despite the encouraging half-year results, Navigator cautions that full-year earnings for FY26 are expected to be lower than FY25. This outlook is primarily due to anticipated reduced profit distributions from NGI Strategic in the second half, following an exceptionally strong performance in the prior year. Nevertheless, the company maintains a flexible balance sheet and robust cash flow, positioning it well to pursue acquisitive growth opportunities.
CEO Stephen Darke highlighted the structural tailwinds supporting the alternative asset management sector, including increased market volatility driven by geopolitical uncertainties and the evolving impact of artificial intelligence. These factors create a fertile environment for high-quality alternative managers to generate alpha and expand their businesses.
Strategic Positioning
Navigator’s strategy focuses on partnering with leading global alternative asset managers, preserving their autonomy while providing strategic capital to fuel growth. The company’s diversified earnings base and consistent free cash flow generation underpin its ability to invest in scalable, fee-generating businesses. This approach has allowed Navigator to navigate market cycles effectively and maintain confidence in its long-term growth trajectory.
Bottom Line?
Navigator’s strong H1 momentum sets the stage for strategic growth, but investors will watch closely for H2 performance amid evolving market dynamics.
Questions in the middle?
- How will NGI Strategic’s H2 performance impact full-year earnings?
- What new acquisition opportunities might Navigator pursue with its strong cash flow?
- How will ongoing AI and geopolitical shifts influence alternative asset management returns?
