ASX Ltd holds AGM: posts earnings growth and outlines FY26 expense guidance

ASX Ltd reported improved revenue and profits and outlined its investment and expense guidance for FY26.

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Key points

  • ASX Ltd reported a 7.0% increase in operating revenue to $1.11 billion and a 7.5% rise in underlying NPAT to $510 million for FY25, with dividends up 7.4% to 223.3 cents per share.
  • The company is maintaining its FY26 expense growth guidance at 14%–19%, focusing on the Accelerate program for risk management and operational resilience, and expects strong new listings and trading activities.
  • Looking ahead, ASX aims to reduce capex from FY28, expand its EBITDA margin, and achieve a medium-term ROE of 13.0%–14.5%, while enhancing technology and operational capabilities.

The ASX Ltd (ASX: ASX) share price is in focus today as the company holds its annual general meeting (AGM). In FY25, the company announced a 7.0% increase in operating revenue and a 7.5% lift in underlying NPAT.

What did ASX Ltd report in FY25?

  • Operating revenue increased by 7.0% to $1.11 billion
  • Underlying net profit after tax (NPAT) rose 7.5% to $510.0 million
  • Statutory NPAT up 6% to $502.6 million
  • Total dividend for the year up 7.4% to 223.3 cents per share (payout ratio 85% of underlying NPAT)
  • EBITDA margin expanded by 70 basis points to 62.8%
  • Underlying return on equity of 13.6%

What else do investors need to know?

ASX Ltd confirmed that expense growth guidance for FY26 remains between 14% and 19% compared to FY25. This includes $25 million to $35 million in operating expenses tied to responding to the ASIC inquiry.

Excluding these, core business expense growth is expected near the upper end of 8% to 11%, reflecting ongoing investment in key programs, especially the Accelerate program focused on resilience and operational risk management.

The company highlighted robust first-quarter FY26 activity, with a $6 billion lift in net new capital quoted and an 18% rise in on-market cash trading volumes. The pipeline for new listings appears solid, and ASX continues to enhance technology and data offerings.

What did ASX Ltd management say?

ASX Managing Director and CEO Helen Lofthouse said:

We are halfway through a multifaceted transformation, driven by the significant investments we are making in our organisation as part of our five year strategy. The Accelerate program is a key vehicle driving our operational risk and resilience uplift to build a stronger ASX.

What's next for ASX Ltd?

ASX is maintaining capital expenditure guidance for FY26 at $170–$180 million, mainly focused on technology modernisation. The company aims to start reducing capex from FY28 as major upgrades reach completion. Guidance for FY27 capex remains at $160–$180 million.

The business is targeting expansion of its EBITDA margin and a medium-term underlying return on equity (ROE) in the 13.0%–14.5% range. ASX expects to continue investing in operational resilience under the Accelerate program and to implement all regulatory recommendations.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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