ASX (ASX) H2 2026 earnings summary

Executive summary

• FY 2026 was marked by operational resilience, record trading volumes, completion of the ASIC inquiry, settlement of CHESS project proceedings, and a CEO transition, with significant regulatory engagement and governance reforms.

• Achieved record volumes across several markets, reflecting benefits from technology investments and the delivery of key elements of the modernization program, including CHESS Release 1.

• Expanded product and service offerings, including new derivatives, data products, and gold ETF options, and advanced governance reforms.

• Strong momentum heading into FY 2027, with a robust listings pipeline, continued growth in trading activity, and positive market sentiment.

Financial highlights

• Operating revenue rose 13.3% year-over-year to $1.25 billion, with all business segments contributing to growth.

• Underlying NPAT increased 5.2% to $536.4 million, while statutory NPAT declined 3.5% to $484.9 million due to significant items.

• EBITDA margin was 61%, down 180 bps; underlying ROE improved 10 bps to 13.7%.

• Dividend payout ratio set at 75% of underlying NPAT, with total FY26 dividend at 206.5 cents, down 7.5% year-over-year.

• Total expenses increased 21.1%, driven by technology investment, Accelerate program, and one-off ASIC Inquiry costs.

Outlook and guidance

• FY 2027 expense growth expected between 18%-21%, with operating expense growth (ex-D&A) at 13%-16%.

• CapEx guidance for FY 2027 is $180–200 million, and $170–190 million for FY 2028, mainly for technology modernization.

• Dividend payout ratio to remain at the lower end of the target range, with DRP operating for at least the next dividend.

• Targeting underlying ROE of 12%-14% over the medium term.

• Strong listings pipeline and continued market volatility expected to support trading activity.