HMC Capital Ltd
(FRA:8320)
€
1.95
-0.040 (-2.01%)
Market Cap: 850.94 Mil
Enterprise Value: 1.03 Bil
PE Ratio: 0
PB Ratio: 0.89
GF Score: 65/100 
Full Year 2026 HMC Capital Ltd Earnings Call Transcript
Aug 26, 2026 / 12:00AM GMT
Release Date Price:
€1.95
(+14.04%)
Key Points
Positve
- HMC Capital Ltd (HMCLF) delivered FY26 operating EPS of $0.404, in line with guidance, and declared a final dividend of $0.06, bringing the full-year dividend to $0.12.
- Fee-generating AUM grew 15% to $16.9 billion, with recurring funds management revenue up 22% to $165.5 million, driven by strong growth in institutional capital partnerships.
- The balance sheet was materially strengthened through capital recycling, ending the year with approximately $1.9 billion in liquidity and investment capacity, including $500 million in undrawn debt.
- Secured $1.35 billion in new institutional mandates for private credit, including a strategic partnership with TPG Credit, positioning the platform for significant AUM growth.
- The energy platform, Illuma Energy, completed a $603 million institutional partnership with KKR, validating the platform and providing capital for future developments, with a clear pathway to $3 billion+ AUM.
- Digital infrastructure (DGT) delivered strong FY26 results with underlying EBITDA of $127 million, ahead of guidance, and is progressing 67 MW of new capacity with a pathway to $250 million stabilized Australian EBITDA.
- The company has over $5 billion in growth opportunities across all verticals, including $2 billion in real estate dry powder and $1 billion+ in private credit investment capacity.
- FY27 guidance of at least $0.35 EPS represents 60% growth year-on-year (excluding the one-off energy transition fee), underpinned by over 30% growth in recurring funds management revenue and fixed cost leverage.
- The company expects 100% cash conversion of underlying earnings in FY27, with no cash tax expected, and has increased dividend guidance to $0.15 per share, up 25%.
- Private credit platform has been upgraded to institutional-grade with independent valuations, dynamic provisioning, and a strong track record of zero principal losses, attracting global capital.
Negative
- Transaction and performance revenue declined to $41.2 million, reflecting the absence of larger transaction revenue recorded in FY25.
- Private credit loan origination volumes slowed in the second half of FY26 due to a disciplined approach in response to evolving market conditions, impacting financial results.
- The company is winding down its US digital operations (StratCap USA), which will incur costs in FY27 and is reported as a discontinued operation.
- Distribution income declined, reflecting no distributions received from HCW during the period, and the company faces ongoing uncertainty regarding the Healthscope situation.
- Interest expenses increased to $22.8 million due to senior debt drawn to warehouse energy transition assets.
- The company recorded a fair value loss of $55 million in the HMC Capital Partners fund, partially offsetting gains from the energy platform.
- The company's guidance excludes any upside from capital recycling, large transactions, and one-off gains, indicating potential volatility in future earnings.
- The company is reducing its co-investment stakes in DGT and HCW, which may result in negative contributions to underlying EPS if sold below NTA.
- The energy platform's contribution to underlying earnings is limited as it is a long-term investment, with realizations expected only in the future.
- The company faces market dislocation in the residential real estate market, which, while creating opportunities, also poses challenges for some managers and may impact deployment.
Operator
Thank you for standing by and welcome to the HMC Capital Limited FY26 full-year results briefing. (Operator Instructions)
I'd now like to hand the conference over to Mr. David Di Pilla, Group Managing Director and Chief Executive Officer. Please go ahead.
David Di Pilla
HMC Capital Limited - Chief Executive Officer, Managing Director, Executive Director
Good morning and thank you for joining today's call. With me on the call this morning are Group CFO, Will MckMicking; and Group COO, Victoria Hardie.
I'll start the presentation on slide 5. Financial year '26 was a year of disciplined execution against our key strategic priorities, leaving the business well-positioned for growth in financial year '27. Firstly, we delivered financial results in line with our guidance.
Second, we made substantial progress on the strategic initiatives we outlined to simplify, scale, and strengthen the business. Over the last 12 months, we've sharpened our focus on the areas where we have the greatest competitive advantages and the strongest growth
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