The Computershare Ltd (ASX: CPU) share price will be in focus this morning, after the company reported a 15% lift in Management EPS and a 4.4% increase in revenue (excluding US Mortgage Services) for FY25.
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What did Computershare report?
- Management EPS up 15%
- Total revenue (ex-Mortgage Services) up 4.4% to $3.1 billion
- Margin income (MI) exceeded expectations at $759 million
- EBIT ex MI increased by 17%, with margins up 150 basis points
- Final dividend increased to 48 cents per share, total FY25 dividend up 14.3% to 93 cents (AUD)
- Return on invested capital (ROIC) over 35%
What else happened in FY25?
Computershare reported growth across all core businesses, even after the sale of its US Mortgage Services business in May 2024. Corporate Trust stood out with fee revenue up over 8%, helped by new mandates and improved margin management.
Employee Share Plans achieved strong results, with revenue climbing 9% and Management EBIT rising by more than 15%. The company also completed its $750 million AUD buyback and invested in new technologies and acquisitions.
What did Computershare management say?
CEO Stuart Irving said:
Computershare has delivered another year of strong earnings growth, with Management EPS up 15%. Results are in line with the earnings guidance we upgraded in February. We are executing well on the strategic plans we made to build a simpler, higher quality and capital light Computershare, that can deliver consistent results and enduring returns for shareholders.
What's next for Computershare?
Looking ahead to FY26, Computershare expects another year of positive earnings growth, with initial guidance for Management EPS to reach around 140 cents per share, up 4%. Management highlighted the company's improved balance sheet and ongoing investment in core businesses and technology, leaving it well positioned for continued growth and shareholder returns.
Computershare share price snapshot
Over the past year, the Computershare shares have outperformed the S&P/ASX 200 Index (ASX: XJO), supported by earnings growth and an increased dividend. Specifically, Computershare shares are up 56%, compared to 14% for the ASX 200 Index.
