Soul Patts and Brickworks Merge to Forge $13.8B Investment Powerhouse

Merger Milestone

In a landmark move for Australian investment markets, Washington H. Soul Pattinson and Company Limited (Soul Patts) successfully merged with Brickworks Limited in September 2025. This strategic union, approved by the Supreme Court of New South Wales, established a new holding company structure under First Services Company Limited (Topco), which now trades on the ASX under the ticker SOL. The merger ended a 56-year cross-shareholding arrangement, simplifying the capital structure and enhancing financial flexibility.

Financial Performance Highlights

The half year ended 31 January 2026 marked a period of significant transformation and growth. The Group reported a statutory net profit after tax of $2.3 billion, a remarkable 604% increase compared to the previous corresponding period. This surge was largely driven by non-regular items including merger-related gains and asset sales. Underlying regular net profit after tax also rose by 6.7% to $304 million, reflecting solid operational performance across the portfolio.

Net Asset Value (NAV) before tax climbed to $13.8 billion, delivering a 9.7% return that outpaced the ASX200 Total Return Index by 6.6%. Post-tax NAV stood at $14.5 billion, underscoring the enhanced value created through the merger and portfolio growth.

Portfolio Diversification and Segment Performance

The merged Group reorganised its investments into five key segments: Listed Companies, Real Assets, Emerging Companies, Credit, and Private Companies. This diversified approach aims to reduce correlation risk and generate steady returns through market cycles.

Emerging Companies led the charge with a 53.6% increase in NAV and a total return of 36.7%, driven by exposure to energy, communication services, and defence sectors. Real Assets also saw material growth, boosted by the inclusion of Brickworks’ industrial property joint ventures. Meanwhile, Listed Companies delivered a 5.9% total return, supported by energy investments. Credit and Private Companies segments contributed positively, with Private Companies benefiting from the addition of Brickworks Building Products.

Capital and Liquidity Strength

The merger was accompanied by a $1.3 billion equity raising through the issue of 34.3 million new shares, strengthening the Group’s balance sheet. At period end, Soul Patts held $472 million in cash and had access to $1.1 billion in financing facilities, with $393 million unutilised. This robust liquidity position provides the Group with significant capacity to pursue new investment opportunities and manage risk effectively.

Dividend Growth and Shareholder Returns

Reflecting confidence in cash flow generation, the Board declared a fully franked interim dividend of 48 cents per share, up 9.1% on the prior period. This marks the 28th consecutive year of dividend growth, highlighting Soul Patts’ commitment to delivering enduring value to shareholders.

Looking Ahead

With a diversified portfolio, a stronger capital base, and enhanced operational scale, Soul Patts is well positioned to navigate ongoing market volatility. The Group’s disciplined investment approach and focus on managing liquidity and risk aim to sustain long-term growth and shareholder wealth creation.