Steadfast Group Ltd (ASX:SDF) shares slipped on Friday after the insurance broker reported a mixed set of FY25 earnings — falling short on revenue and profit expectations but issuing stronger guidance for the year ahead.
The company’s stock was at $6.02 as of 2:45 pm AEST on Friday, down 1.95%, as investors weighed a broad earnings miss against upbeat forecasts for FY26.
Mixed FY25 performance
Steadfast posted underlying revenue of $1.76 billion, up 8.9% but 4.9% below analyst estimates. Underlying EBITA rose 11.9% to $591.4 million, a 2.6% beat on consensus, but net profit after tax (NPAT) came in at $295.5 million — missing expectations by nearly 15%.
The board declared a fully franked final dividend of 11.7 cents per share, up 14% year-on-year but just shy of Macquarie’s 12.2 cent estimate.
CEO Robert Kelly highlighted the group’s consistent growth record, noting: “FY25 continued our year-on-year record strong growth in revenue and profit, making it the 12th consecutive increase since listing in 2013. This has resulted in a shareholder, who participated in the Steadfast listing and continues to hold their shares, experiencing a total shareholder return of 530.3% on their initial investment.”
Stronger outlook for FY26
Looking forward, Steadfast guided to FY26 underlying NPAT of $315 million–325 million and EBITA of $650 million–665 million. At the midpoint, this represents a 0.9% and 6.2% beat on analyst expectations, respectively.
The company cited ongoing organic growth, acquisitions in Australia and abroad, and an expected 3–5% increase in domestic insurance premium pricing as key drivers of earnings momentum.
Steadfast continues to pursue international expansion, following its December 2024 acquisition of UK broker H.W. Wood (now HWS Specialty) and the post-year-end majority stake in US-based Novum Underwriting Partners.