HMC Capital share price on watch as FY26 earnings meet guidance, FY27 growth targeted

The HMC Capital Ltd (ASX: HMC) share price is in focus today after the company posted operating EPS of 40.4 cents per share (pre-tax) for FY26, meeting its guidance, and reported a 22% lift in recurring funds management revenue to $165.5 million.

What did HMC Capital report?

• Operating EPS (pre-tax) of 40.4 cents per share, in line with FY26 guidance
• Underlying EPS (pre-tax) of 30.2 cents, excluding discontinued operations
• Fee-generating AUM grew 15% to $16.9 billion
• Recurring funds management revenue up 22% to $165.5 million
• FY26 dividend declared at 12.0 cents per share
• Tangible assets and undrawn debt capacity of $1.9 billion

What else do investors need to know?

During FY26, HMC Capital expanded across all major verticals. Real estate fee-generating AUM increased to $9.0 billion, bolstered by solid growth in unlisted property strategies and ongoing deployment opportunities. In private credit, fee-generating AUM rose to $2.3 billion, supported by fresh institutional mandates and strong net inflows. The digital infrastructure and energy platforms also contributed to higher management revenues and strengthened the balance sheet, with key partnerships helping to fund future growth and development.

The company’s more focused strategy, which included capital recycling and building platforms with institutional backing, has positioned it for continued expansion. Management highlights a robust pipeline and a strong balance sheet, supporting additional investment opportunities in FY27.

What did HMC Capital management say?

HMC Managing Director and Group CEO, David Di Pilla, said:

During FY26, HMC made substantial progress against our strategic priorities to simplify, scale and strengthen our operations and position the business to create long-term value for security holders.

The Group secured significant new institutional capital commitments across Private Credit and Energy, continued to grow our Real Estate platform and advanced strategic capital recycling initiatives within Digital Infrastructure. These actions have given us dry powder to continue to grow… With significant liquidity and a proven ability to attract institutional capital, we are focused on deploying capital into opportunities that can drive higher returns and long-term recurring earnings growth.

What’s next for HMC Capital?

Looking to FY27, HMC Capital is targeting at least 16% growth in underlying earnings, with guidance for underlying EPS of at least 35 cents per share. This forecast is underpinned by more than 30% expected growth in recurring funds management revenue, a 35% rise in distributions from its co-investments, and further cost efficiencies.

The board has laid down an FY27 dividend guidance of 15 cents per share, a 25% increase on FY26, supported by the company’s growth in recurring earnings and ongoing capital recycling initiatives.

HMC Capital share price snapshot

The HMC Capital share price has struggled over the past 12 months, underperforming the S&P/ASX 200 index (ASX: XJO) with a decline of almost 25%.

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The post HMC Capital share price on watch as FY26 earnings meet guidance, FY27 growth targeted appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 no position in any of the stocks mentioned. 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.