Steadfast Group delivered double-digit underlying EBITA growth in FY26 alongside a recommended $6 per share acquisition offer, reflecting a premium of nearly 52%. The insurer broker network continues to expand, supported by technology upgrades and international acquisitions.
- Underlying EBITA up 13.8% to $669.8 million
- Gross written premium (GWP) growth of 6.2% in Australasian broker network
- Scheme Implementation Deed signed for $6.00 per share cash acquisition
- Final fully franked dividend increased 9% to 12.75 cents per share
- Steadfast targets FY27 EBITA between $700 million and $715 million
Strong Earnings Growth Supports $6 Per Share Acquisition Offer
Steadfast Group (ASX:SDF) capped off FY26 with a robust 13.8% increase in underlying EBITA to $669.8 million, powered by a blend of organic growth and acquisitions. The company’s underlying net profit after tax (NPAT) rose 8.2% to $319.5 million, while diluted EPS grew 7.7% to 28.8 cents per share. However, statutory NPAT fell 20% to $269.1 million, weighed down by non-trading items including impairment charges and deferred consideration adjustments.
In a major strategic development, Steadfast has entered into a Scheme Implementation Deed (SID) with a consortium comprising Amwins, Dragoneer, and KKR to acquire all issued shares for $6.00 cash per share. This offer represents a 51.9% premium to the company’s undisturbed closing price on 9 June 2026. The Steadfast Board unanimously recommends shareholder approval, subject to the independent expert’s endorsement and absence of a superior proposal. The scheme is targeted for implementation in December 2026, pending regulatory and shareholder approvals.
Broker Network Expansion and Operational Efficiency Drive Growth
The Australasian broker network remains Steadfast’s powerhouse, delivering gross written premium (GWP) growth of 6.2% to $13.2 billion and underlying EBITA growth of 13.2%. Organic growth contributed 2.4%, while acquisitions and increased equity stakes accounted for the remainder. The company’s broker hubbing strategy, aimed at consolidating operations and eliminating cost duplication, underpinned margin expansion and operational efficiencies.
Steadfast now holds equity interests in 62 brokers who collectively place over half the network’s GWP. The network’s scale and technology platforms, including the INSIGHT Broking System with over 260 brokers and 8,000 users, provide a sustainable competitive advantage. The company also reported a 2.0% average base premium increase in Australia during FY26, supporting revenue resilience.
Underwriting Agencies and International Businesses Show Steady Progress
Steadfast’s underwriting agencies posted a 2.3% increase in GWP to $2.5 billion and a 5.2% rise in underlying EBITA to $260.8 million. The segment focused on underwriting discipline, retention, and targeted new business while completing consolidation efforts to improve capital and operating efficiencies.
Internationally, Steadfast’s businesses, including ISU Steadfast in the US, HWS Specialty in the UK, and Novum Underwriting Partners, delivered a dramatic 400.8% increase in underlying EBITA to $29.8 million. This leap was fueled by organic growth in profit sharing and membership fees, new business wins in marine insurance, and contributions from recent acquisitions. Novum alone saw over 60% organic growth in GWP and revenue during FY26.
Technology Investment Accelerates Broker Capabilities
Steadfast continues to invest heavily in its insurtech platforms, including the Steadfast OnePlatform, which integrates AI and automation to streamline the insurance lifecycle. The rollout of Steadfast Apps, a unified SaaS platform, aims to enhance broker efficiency through automation, improved compliance, and client relationship management tools. Over 13,000 brokers and insurers have migrated to the new secure multi-factor authentication system, with further AI-enabled features scheduled for release through FY27.
Dividend Increase and FY27 Guidance Signal Confidence
The company declared a fully franked final dividend of 12.75 cents per share, up 9% on FY25, bringing the total FY26 dividend to 20.95 cents per share. Notably, the Dividend Reinvestment Plan will not apply to the final dividend.
Looking ahead, Steadfast projects FY27 underlying EBITA between $700 million and $715 million, with underlying NPAT expected between $333 million and $343 million. Diluted EPS growth is forecast at 4% to 8%, assuming a 2% to 3% increase in Australian insurance premium pricing. The company’s growth strategy will continue to focus on organic expansion, acquisitions, technology innovation, and operational efficiencies.
Steadfast’s balance sheet remains solid with total corporate debt facilities of $1.37 billion, recently extended, and gearing at 36%. The group generated free cash flow of $166.6 million in FY26, maintaining strong cash conversion to support dividends and working capital needs.
Bottom Line?
Steadfast’s FY26 results and $6 per share acquisition proposal highlight a company balancing steady organic growth with strategic acquisitions and technology investments, setting the stage for a pivotal year ahead.
Questions in the middle?
- Will the $6 per share acquisition scheme receive shareholder and regulatory approval by December 2026?
- How will Steadfast sustain margin expansion amid moderate premium price increases?
- What impact will ongoing insurtech investments have on broker retention and competitive positioning?