Challenger full-year profit up 48% to $192m
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The news: Investment manager Challenger reported a statutory net profit of $192 million for the 2025 financial year, up 48% from $130 million a year ago, amid record retail lifetime annuity sales and record Japanese annuity sales.
The numbers: Normalised net profit after tax totalled $456 million for the year, up 9% year on year, and in line with the updated guidance of between $450 million and $465 million issued in April 2025. The guidance range was previously $440 million and $480 million at the time of the FY24 results.
Challenger posted record retail lifetime annuity sale of $1.1 billion, up 26% year on year, and record Japanese annuity sales of $984 million, up 39% year on year.
Assets under management (AUM) fell 3% to $123.9 billion from $127.1 billion a year earlier.
The Sydney-based group lifted its full-year dividend by about 11% to 29.5 cents per share fully franked, from 26.5 cents in FY24. Analysts had expected a full-year dividend of 28.9 cents per share, according to Visible Alpha data.
For FY26, Challenger is guiding normalised basic earnings per share in the range of 66 and 72 cents per share. The mid-point represents a 4% increase on FY25. Challenger is moving to normalised basic earnings per share from normalised NPAT because "it is a better reflection of shareholder returns".
The context: Challenger managing director and CEO Nick Hamilton said the company hit record retail lifetime and Japanese annuity sales in FY25.
The company also entered new partnerships with superannuation funds, wealth managers and platforms, including Telstra Super, Aware Super, Commonwealth Super Corporation and NGS Super.
The source: ASX
