L1 Group's Post-Merger Success
L1 Group Reports Doubled EBITDA and Strong Profit Growth Post-Merger, Declares Dividend
Key Points
Statutory profit after tax attributable to ordinary shareholders rose to $145.242 million, up 79% year-on-year, with total revenue and other income for the year ended 30 June 2026 totaling $963.079 million, highlighting a solid top-line expansion beyond the underlying metrics.
Merger-related cost synergies realised of about $32 million as at 30 June 2026 exceeded the earlier target range of $30–$35 million, and the company upgraded its annualised run-rate synergy target to approximately $43 million by FY27.
Funds under management reached about US$19.1 billion, up around 17%, with L1 Capital and its affiliates accounting for roughly 73% of FUM at year-end (up from 55% at the time of the merger).
Flagship investment performance was strong, with the L1 Long Short Strategy delivering a 45.4% return in FY2026.
Net inflows improved across FY2026, with net flows turning positive quarter-by-quarter and indicating improving investor confidence post-merger.
L1 Group (ASX: L1G) delivered a blockbuster FY2026, with underlying net profit after tax surging 97% to $188.8 million and underlying EBITDA jumping 102% to $287.4 million, according to Kalkine Media. The results reflect the first full year of combined operations following the merger of Platinum Asset Management and L1 Capital.
The company also declared a final fully franked ordinary dividend of 2 cents per share, alongside six months of dividends for Z Class Shares, as reported by Kalkine Media. Funds under management hit $19.1 billion, up 17% from the prior year.
Revenue Doubles as Merger Integration Powers Earnings
Total underlying revenue grew 49% to $385.9 million for the year ended 30 June 2026, while operating expenses fell about 15%, according to Grafa. That combination drove the near-doubling of EBITDA. Statutory profit after tax attributable to ordinary shareholders came in at $145.2 million, up 79% year-on-year, per Kalkine.
A one-off $79.3 million performance fee from closing the unlisted L1 Wholesale Gold Fund gave results an extra boost. Total revenue including all income reached $963.1 million for the year, far above the underlying figure, as noted by Market Screener.
Merger Synergies Beat Target, New Goal Set at $43 Million
L1 Group realized $31.7 million in merger cost synergies during FY2026. That already sits within the original $30–$35 million target range, according to Grafa. The company then upgraded its annualized run-rate synergy target to $43 million by FY2027.
The integration is also reshaping the FUM mix. L1 Capital and its affiliates now account for 73% of total funds under management. That is up sharply from 55% at the time of the merger, showing how the combined group's center of gravity has shifted.
Flagship Fund Returns 45% as Investor Flows Turn Positive
Investment performance was a standout in FY2026. The L1 Long Short Strategy delivered a 45.4% return for the year, per Kalkine. Strong returns like that are key to rebuilding investor confidence after any merger-driven uncertainty.
Net flows improved quarter by quarter through FY2026, turning positive as the year went on. That trend points to growing trust from investors. With $19.1 billion in FUM and momentum building, the group enters FY2027 in a stronger position than it started FY2026.
Fully Franked Dividend and ASX Filings Signal Confidence
L1 Group declared a final ordinary dividend of 2 cents per share, fully franked. Fully franked means the company has already paid tax on those earnings, so shareholders get a tax credit. The company also paid six months of dividends for Z Class Shares, according to Kalkine Media.
The company filed its Appendix 4E, Appendix 4G, and full governance statements with the ASX on 17 August 2026. An active dividend reinvestment plan remains in place. The filings underscore a push for transparency as the merged group cements its identity, per Kalkine Media.
Sentiment
Mostly PositivePublishers
12
Articles
5
Reach
17
