Half Year 2026 HMC Capital Ltd Earnings Call Transcript
Key Points
- HMC Capital Ltd (HMCLF) reported strong operational momentum with an increase in assets under management (AUM) to AUD 19.5 billion, up AUD 600 million since June.
- The company has a net liquidity position of AUD 1.6 billion, reflecting a strong and flexible balance sheet.
- A strategic partnership with KKR in the energy transition sector is expected to add significant fee-earning AUM in the second half of FY 2026.
- HMC Capital Ltd (HMCLF) declared an interim dividend of AUD 0.06, partially franked, consistent with its commitment to sustainable shareholder returns.
- The company is targeting a 20% return on equity in its energy transition projects, with committed equity in place for an AUD 800 million BESS project.
- The company experienced a lower contribution from performance fees and principal investment income due to adverse market conditions.
- Transaction and performance revenue decreased to AUD 4.2 million, reflecting the absence of larger transaction revenue compared to the previous year.
- Corporate expenses increased modestly as the company continued to invest in platform capability.
- The private equity segment reported an operating earnings loss before tax of AUD 3.1 million, primarily due to lower management fees.
- The company's share price has been volatile and does not reflect the management's view of the business outlook.
Good morning, thank you for joining today's call. With me on the call this morning is Group CFO, Will McMicking, and Group Head of Strategy, Misha Mohl. Before we commence, HMC Capital would like country throughout Australia and celebrate their diverse culture and community. We pay our respects to their elders, past and present, and extend that respect to all Aboriginal and Torres Strait Islander people today. I'll start the presentation this morning on slide first half financial year 26 results. Before we begin, I want to acknowledge the dislocation in our share price. Whilst the market has been volatile, the current share price does not reflect our view around the outlook for our business, specifically the durability of HMC's recurring earnings base, the visibility on AUM growth, nor the liquidity and resilience of our balance sheet.
Across the group, we are seeing strong operational momentum, expanding fee-earning AUM, and mission earning streams from our three newest verticals: private credit,
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