ASX Ltd posts solid 1H26 results, trims dividend as costs rise

The ASX Ltd (ASX: ASX) share price is in focus after the company posted strong half-year results, with operating revenue up 11.2% to $602.8 million and underlying net profit after tax (NPAT) increasing 3.9% to $263.6 million.

What did ASX Ltd report?

• Operating revenue of $602.8 million, up 11.2% on 1H25
• Statutory and underlying NPAT of $263.6 million, up 8.3% and 3.9% respectively
• Total expenses of $264.3 million, up 20.0%
• Underlying return on equity steady at 13.5%
• Interim dividend of 101.8 cents per share, down 8.5% and fully franked
• All four business lines contributed to the result, highlighting a diversified portfolio

What else do investors need to know?

ASX’s expense growth was higher this half, partly due to costs related to the ASIC Inquiry and investments in major transformation programs, including technology upgrades and the Accelerate initiative. Excluding ASIC-related costs, core business expenses rose by 12.1%.

There were several product launches in the half, such as gold ETF options and new environmental futures contracts, supporting customers as Australia’s markets evolve toward sustainability and energy transition. The company is also preparing for the switchover to a new clearing platform (CHESS Release 1), now targeted for April 2026.

What did ASX Ltd management say?

ASX Managing Director and CEO Helen Lofthouse said:

ASX achieved strong revenue growth of 11.2% to $602.8 million in the half and we continued to deliver key business outcomes during the period. Revenue performance was driven by high volumes for cash market trading, clearing and settlement, and interest rate futures. It was particularly pleasing to see all four business units contributing to our result, underscoring the value of ASX’s diversified business model.

What’s next for ASX Ltd?

Looking ahead, ASX is focused on implementing its Commitments plan following the ASIC Inquiry, including strengthening governance and risk management, and raising an additional $150 million in capital by June 2027. The dividend payout ratio has been trimmed and a discounted dividend reinvestment plan introduced for at least the next three payments.

The company is preparing for the launch of its new clearing platform and expects capital expenditure for FY26 and FY27 to remain within previous guidance. Higher operating expenses are anticipated, mainly due to regulatory and program-related investments.

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The post ASX Ltd posts solid 1H26 results, trims dividend as costs rise 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 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.