AUB Group posts half-year profit, lifts FY26 guidance

The AUB Group Ltd (ASX: AUB) share price is in focus today after the company reported a 14% lift in underlying NPAT to $90.4 million and raised its FY26 profit guidance.

What did AUB Group report?

• Underlying NPAT rose 14% to $90.4 million (1HFY25: $79.3 million)
• Reported NPAT up to $35.3 million (1HFY25: $26.4 million)
• Underlying earnings per share: 77.54 cents (up from 68.07 cents)
• Fully franked interim dividend of 27.0 cents per share (1HFY25: 25.0 cps)
• FY26 underlying NPAT guidance upgraded to $220–230 million, representing 9.9%–14.9% growth over FY25

What else do investors need to know?

AUB Group reported strong profit growth across most divisions, especially in Australian broking (up 11.4%) and international operations (up 29%), thanks to acquisition activity and higher average commission income per client. However, New Zealand broking profit dipped 12.8% due to weak corporate market conditions and ongoing investment in gaining market share.

Capital management remains solid, with a leverage ratio of 2.49x and $143.5 million in accessible cash and undrawn debt at 31 December 2025. The interim dividend will be paid on 2 April 2026, but the dividend reinvestment plan is still suspended.

Nick Dryden has been appointed as Chief Financial Officer, having served previously as deputy CFO and interim CFO.

What did AUB Group management say?

AUB Group CEO and Managing Director, Michael Emmett, said:

The Group delivered another strong profit result in 1H26, with robust earnings growth in most Divisions. This was despite a disappointing performance in New Zealand and unfavourable currency headwinds from continued weakening of the US Dollar. I would like to thank our teams, member businesses and insurer partners for their commitment and execution. Above all, I thank our customers for their trust and their reliance on our advice for their insurance needs.

What’s next for AUB Group?

The company has upgraded its FY26 underlying NPAT guidance to between $220 million and $230 million, assuming the completion of its Prestige acquisition no later than 1 May 2026 and growth in AUB 360 and Pacific Indemnity. AUB Group expects ongoing profit and margin growth through bolt-on acquisitions and organic expansion.

Foreign exchange remains a watchpoint, but the company has certain hedges in place for the remainder of FY26. Strategic investments and careful capital management remain a focus for the year ahead.

AUB Group share price snapshot

Over the past 12 months, AUB Group shares have declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

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The post AUB Group posts half-year profit, lifts FY26 guidance appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Aub Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.