The Australian Ethical Investment Ltd (ASX: AEF) share price is in focus after the company posted record FY26 earnings, with NPAT up 29% to $25.7 million and revenue rising 9% to $129.5 million.
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What did Australian Ethical Investment report?
- Net profit after tax (NPAT) attributable to shareholders rose 29% to $25.7 million
- Underlying profit after tax (UPAT) increased 15% to $27.3 million
- Revenue climbed 9% to $129.5 million
- Funds under management (FUM) reached $14.5 billion, up on the prior year
- Final fully franked dividend of 10 cents per share, taking FY26 dividends to 18 cents, up 29%
- Underlying cost to income ratio improved to 69.8%
What else do investors need to know?
Australian Ethical's superannuation arm continued to drive growth, making up 72% of total FUM and generating positive net flows and recurring contributions. The business also saw strong net flows from its middle-market and institutional channels.
Strategic highlights this year include completing the transition to a new digital superannuation platform with GROW Inc, launching new private markets products with institutional backing, and fully integrating Altius Fixed Income offerings under its brand. Employee engagement stayed at top-quartile levels, and the business reported continued recognition in industry awards.
Australian Ethical maintained its commitment to donating 10% of profits to charitable causes, allocating $3.4 million to the Australian Ethical Foundation to support climate-focused charities.
What's next for Australian Ethical Investment?
Looking ahead, Australian Ethical expects positive net flows to continue in FY27, driven by the strength of its superannuation platform and growth in middle-market channels. Revenue margins are likely to stay steady, while the company plans to keep expense growth below that of revenue.
Management aims to further modernise its technology and digital offering, continue product innovation, and invest in member experience and governance enhancements. These efforts are designed to support acquisition and retention, which should help underpin continued positive net flows and improved business efficiency.
Australian Ethical Investment share price snapshot
Over the past 12 months, Australian Ethical Investment shares have declined 45%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.
