Steadfast Posts 16% Revenue Growth to $900.7 Million, Declares 8.2c Dividend
Steadfast Group Limited reported a solid half-year result for December 2025, with underlying net profit after tax rising 7% to $137.5 million and a fully franked interim dividend declared. The insurer intermediary also increased its gearing capacity to support ongoing growth.
- Underlying NPAT up 7% to $137.5 million
- Statutory NPAT rises 19% to $127.0 million
- Revenue grows 16% to $900.7 million
- Interim dividend declared at 8.2 cents per share, fully franked
- Board increases maximum gearing ratio to 40%
Strong Financial Performance Amid Strategic Expansion
Steadfast Group Limited has delivered a robust financial performance for the half year ended 31 December 2025, reflecting steady growth across its insurance intermediation businesses. The company reported an underlying net profit after tax (NPAT) of $137.5 million, marking a 7% increase compared to the prior corresponding period. Statutory NPAT rose even more sharply, by 19% to $127.0 million, underscoring the strength of the core operations despite some non-trading adjustments.
Revenue climbed 16% to $900.7 million, driven by a combination of moderate insurance premium price increases, strategic acquisitions, and expanded equity stakes in existing businesses. Notably, the acquisition of Novum Underwriting Partners LLC in the United States and a full period contribution from Rothbury Group and other FY25 acquisitions contributed significantly to growth.
Capital Management and Dividend Policy
The Board declared an interim dividend of 8.2 cents per share, fully franked, payable on 25 March 2026. The dividend reinvestment plan (DRP) will operate through on-market share purchases without any discount, reflecting Steadfast’s commitment to returning value to shareholders while maintaining financial flexibility.
In a strategic move to support ongoing growth ambitions, the Board increased the maximum gearing ratio to 40%, up from 35%. At the reporting date, the Group’s gearing ratio stood at 33.4%, well within the new limit. This adjustment aligns with Steadfast’s disciplined capital management approach, ensuring sufficient balance sheet capacity for future acquisitions and organic expansion.
Acquisitions and Asset Impairments
During the half, Steadfast completed 14 acquisitions, further consolidating its market position. These transactions increased goodwill and identifiable intangible assets by $197.5 million and $59.5 million respectively. The average EBITA multiple paid for acquisitions was 11.4x, indicating a focus on quality earnings accretion.
However, the Group recognised a $15 million impairment expense, primarily related to Rothbury Group, reflecting softer than anticipated market conditions in New Zealand. This impairment was partially offset by a $26.1 million gain from reassessing deferred and contingent consideration linked to the Rothbury acquisition.
Outlook and Guidance Reaffirmed
Steadfast reaffirmed its full-year 2026 guidance, targeting underlying NPATA of $365 million to $375 million and underlying NPAT of $315 million to $325 million. The company expects underlying diluted earnings per share growth of 6% to 10%, supported by a 2% to 3% increase in Australian insurance premium pricing. The Group’s strategic focus remains on growing shareholder value through both organic growth and acquisitions, particularly within general insurance intermediation.
The financial statements were reviewed by KPMG, with no issues identified, providing additional assurance on the quality of the reported results.
Bottom Line?
Steadfast’s solid half-year results and increased gearing capacity set the stage for continued growth, but investors will watch closely how recent impairments and acquisitions translate into future earnings.
Questions in the middle?
- How will the impairment of Rothbury Group affect Steadfast’s earnings trajectory in the coming periods?
- What are the strategic priorities for Steadfast’s international expansion beyond the US and New Zealand?
- How might changes in insurance premium pricing and regulatory environments impact Steadfast’s FY26 guidance?
