Future Generation Australia Posts 13.6% Profit Rise and Boosts Fully Franked Dividend

Strong Financial Performance

Future Generation Australia Limited (ASX: FGX) has delivered a solid financial performance for the year ended 31 December 2025, posting a 14.1% increase in its investment portfolio. This outperformance exceeded the S&P/ASX All Ordinaries Accumulation Index by 3.5%, underscoring the effectiveness of its diversified investment strategy focused on small and mid-cap Australian equities managed by 16 pro bono fund managers.

The company reported revenue of $78.2 million, a 13.0% increase over the prior year, with operating profit before tax rising 13.6% to $71.3 million and net profit after tax up 10.4% to $52.9 million. Net tangible assets (NTA) before tax increased to $1.48 per share, reflecting strong underlying asset growth despite a slight widening in the share price discount to NTA.

Dividend Increase and Shareholder Returns

In response to the strong results, the Board declared a fully franked final dividend of 3.6 cents per share, maintaining the full year dividend at 7.2 cents per share. This translates to a fully franked dividend yield of 5.5% and a grossed-up yield of 7.9% based on the closing share price of $1.31. Since inception in 2014, Future Generation Australia has returned 57.1 cents per share in fully franked dividends, or 81.6 cents including franking credits, highlighting its commitment to providing consistent income streams to shareholders.

The company’s Dividend Reinvestment Plan (DRP) remains in operation without a discount, allowing shareholders to reinvest dividends at a price based on the volume weighted average market price over four trading days from the ex-dividend date.

Social Impact Commitment

Beyond financial returns, Future Generation Australia continues to prioritise social impact, donating 1.0% of its average monthly net assets annually to support vulnerable Australian children and youth. In 2025, the company contributed $5.7 million to 11 social impact partners, including six new organisations selected through a national Expression of Interest process. These partners focus on fostering resilience and positive development for children aged 0 to 14 facing adversity.

Since inception, total social investments have reached $49.0 million, reinforcing the company’s unique model that blends strong investment performance with meaningful philanthropic outcomes.

Governance and Leadership Transitions

The company strengthened its leadership team with the appointment of Lee Hopperton as Chief Investment Officer in February 2025, enhancing investment and distribution capabilities. In February 2026, Bonnie Ashton joined as General Manager, bringing extensive experience in philanthropic strategy and stakeholder engagement. Meanwhile, CEO Caroline Gurney stepped down in February 2026 but remains involved as a member of the Future Generation Women Advisory Committee.

The Board, chaired by Dr Philip Lowe, maintains a rigorous governance and risk management framework, overseeing the company’s strategic direction, investment oversight, and compliance. Directors continue to waive their fees, reflecting a commitment to the company’s mission and cost efficiency.

Outlook and Market Position

Future Generation Australia’s investment portfolio is well-positioned with a diversified exposure weighted towards small and mid-cap equities, balancing long equities and absolute bias strategies to manage volatility and concentration risk. The company aims to unlock further shareholder value by narrowing the current discount to NTA.

With a profits reserve covering over six years of dividends and a strong pipeline of social impact initiatives, the company signals confidence in sustaining its fully franked dividend stream and delivering long-term capital growth.