HMC Capital Ltd’s shares surged 16.38% to AUD 3.41 on Thursday after the group reported FY2026 operating earnings before tax of AUD 166.8 million, in line with guidance, while raising its FY2027 outlook and dividend forecast.
The company’s operating earnings per share (EPS) came in at AUD 0.404, with a comparable figure of AUD 0.437 after adjusting for discontinued operations. Funds management EBITDA reached AUD 88.5 million, while recurring funds management revenue climbed 22% year-over-year to AUD 165.5 million. Fee-generating assets under management (AUM) expanded 15% to AUD 16.9 billion, a figure that has grown at a compound annual rate of roughly 52% since 2021.
Management fee revenue rose 23% to AUD 159.3 million, though transaction and performance revenue declined to AUD 41.2 million. Net tangible assets stood at AUD 1.2 billion, translating to AUD 2.95 per share. Gearing remained conservative at 10.7% as of June 2026, down from 11.5% in December 2025, while liquidity and investment capacity totaled approximately AUD 1.9 billion, including AUD 500 million of undrawn debt capacity.
HMC declared a final dividend of AUD 0.06 per share, bringing the full-year payout to AUD 0.12 per share. For FY2027, the company guided underlying earnings to at least AUD 0.35 per share, representing a 16% increase from FY2026 on a reported basis. Excluding a AUD 35 million energy transition fee capital charge earned in FY2026, the growth rate rises to 60%. Dividend guidance for FY2027 was lifted 25% to AUD 0.15 per share.
Growth is expected to be driven by a more than 30% increase in recurring funds management revenue and a 35% rise in co-investment distributions from DGT, HCW, and HDN. The company also anticipates 100% conversion of underlying earnings to cash and flat or slightly lower costs. No cash tax is expected in FY2027.
HMC’s principal investments weighting is set to rise from around 35% to 50% over time through capital recycling, with an incremental AUD 25 million to AUD 50 million per annum of underlying earnings anticipated.
Across its verticals, real estate contributed nearly AUD 90 million in management and transaction fee revenue in FY2026, with unlisted real estate AUM growing 15% to AUD 2.9 billion. The HealthCo Healthcare & Wellness REIT (HCW) dividend guidance for FY2027 was reinstated at AUD 0.06 per share, subject to Healthscope’s resolution, with 100% of Healthscope rent paid through August 2026.
Private credit AUM grew 17% to AUD 2.3 billion in FY2026, supported by AUD 1.35 billion in new institutional mandates, taking committed AUM to AUD 3.3 billion. The flagship core fund returned 8.7% over the prior 12 months with no principal losses, while the average loan-to-value ratio in the pooled fund stood at 58% against a 70% target maximum.
Digital infrastructure unit DGT delivered underlying EBITDA of AUD 127 million, ahead of its AUD 125 million guidance, and generated AUD 35 million in management fee revenue. The SYD1 expansion project completed its initial 20-megawatt deployment, with letters of intent secured for the remaining 52 megawatts, targeting delivery across FY2027 and FY2028. The Adelaide1 brownfield expansion adds 15 megawatts.
Energy platform Illuma Energy, ranked among the top 10 in Australia’s National Electricity Market, reported AUD 1.5 billion in AUM across wind, solar, and battery storage. Operating capacity reached 652 megawatts, with 85% contracted, and a development pipeline of around 5 gigawatts across 19 projects. The unit secured a AUD 603 million institutional partnership with KKR and a AUD 248 million capital commitment for its first Battery Energy Storage System project, reducing HMC’s invested capital to around AUD 200 million.
