The Generation Development Group Ltd (ASX: GDG) share price is in focus today after reporting a 21% lift in underlying NPAT to $40.7 million and a 23% rise in group revenue to $178.7 million for FY26.
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What did Generation Development Group report?
- Underlying NPAT: $40.7 million, up 21%
- Group revenue: $178.7 million, up 23%
- Funds under management (FUM): $46.5 billion, up 37%
- Record group net inflows: $9.7 billion, up 19%
- Statutory NPAT: $31.9 million, down 10%
- Final fully franked dividend: 1 cent per share (full-year total 2 cents)
What else do investors need to know?
FY26 was marked by the completion of the Evidentia and Lonsec Investment Solutions integration, creating a single managed accounts platform under Evidentia Group. Managed account FUM grew to $40.5 billion, fuelled by net inflows and increased adviser adoption.
Generation Life's FUM hit a record $5.95 billion, reflecting strong demand for investment bonds amid ongoing superannuation and tax reform. Lonsec delivered resilient performance, expanding its research coverage to 2,001 products and growing its iRate subscriber base to 5,629.
What did Generation Development Group management say?
Generation Development Group CEO, Grant Hackett OAM said:
FY26 was another strong year for the Group, characterised by record net inflows, continued market share gains and strong earnings growth.
The successful integration of Evidentia Group and Lonsec Investment Solutions, combined with ongoing investment across our businesses, has strengthened our competitive position and enhanced our ability to capitalise on long-term structural growth opportunities.
Generation Life, Evidentia and Lonsec each hold leading positions in attractive markets benefiting from powerful demographic, regulatory and industry tailwinds.
We enter FY27 with a high-quality recurring revenue base, strong execution momentum and significant opportunities to continue compounding earnings and long-term shareholder value.
What's next for Generation Development Group?
The group enters FY27 well-placed to benefit from strong structural tailwinds across superannuation, retirement, and managed account markets. Management anticipates ongoing growth in FUM, supported by adviser adoption and stable product revenue margins.
Underlying operating expenses are expected to rise in line with prior years, as GDG continues investing in people, technology, and new partnerships. The company's robust balance sheet supports its disciplined approach to further growth and improved operating leverage over time.
Generation Development Group share price snapshot
Over the past 12 months, Generation Development Group shares have declined 40%, trailing the All Ordinaries Index (ASX: XAO), which has climbed 1% over the same period.
