Perpetual posts higher FY26 profit and readies for business sale

The Perpetual Ltd (ASX: PPT) share price is in focus as the company reports a 6% rise in underlying profit after tax (UPAT) to $217 million and declares a final unfranked dividend of 63 cents per share.

What did Perpetual report?

• FY26 operating revenue of $1,374.2 million (flat year-on-year)
• UPAT of $217.0 million, up 6% from FY25
• Statutory net profit after tax (NPAT) of $88.9 million, recovering from a $58.2 million loss in FY25
• Corporate Trust profit before tax up 9% to $98.8 million
• Final dividend of 63 cents per share (unfranked); total FY26 dividends $1.22 per share (65% payout ratio)
• Annualised cost savings of $72.6 million delivered under the Simplification Program

What else do investors need to know?

Perpetual signed a binding agreement in March 2026 to sell its Wealth Management division to Bain Capital. This move is a key part of the company’s simplification strategy, with the transaction expected to complete in the final quarter of 2026, subject to regulatory approvals.

The group continued to reduce debt, lowering gross debt by 15% over the past year to $629.3 million. Proceeds from the Wealth Management sale are expected to further strengthen the balance sheet, supporting future investment in Asset Management and Corporate Trust.

Significant items after tax were $128.1 million, mainly related to transaction and separation costs from the Wealth Management sale, impairment charges, and costs tied to the ongoing Simplification Program.

What did Perpetual management say?

Perpetual CEO and Managing Director Bernard Reilly said:

FY26 was a positive year despite mixed market conditions. We delivered strong earnings growth and improved profitability against a backdrop of geopolitical uncertainty and corporate change, highlighting the benefits of our diversified business model.

What’s next for Perpetual?

Perpetual’s top priority is completing the sale of Wealth Management, marking a further step in its transition to a simpler organisation. After the sale, Perpetual plans to focus on its Asset Management and Corporate Trust businesses—aiming for consistent earnings, a stronger balance sheet, and greater financial flexibility.

Perpetual is also pursuing ongoing cost efficiencies and digital transformation in Corporate Trust and is targeting fresh product innovation and global growth in Asset Management, including a turnaround plan for its J O Hambro boutique.

Perpetual share price snapshot

The Perpetual share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of almost 12%.

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The post Perpetual posts higher FY26 profit and readies for business sale appeared first on The Motley Fool Australia.

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