Magellan Financial Group FY26 operating profit drops to $145M

• Magellan Financial Group reports full-year results following its merger with Barrenjoey Capital Partners.
• Operating profit fell 9% to $145 million at the core asset management business.
• Strong profit growth from investment banking partner Barrenjoey partially offset ongoing outflows in heritage global equity funds.

Magellan Financial Group (ASX:MFG) announced a full-year operating profit after tax of $145 million for the period ended June 30, marking a 9% decline from the previous year.

The result was driven by a 13% reduction in management fee revenue following net outflows from the group's heritage Global Equities funds.

Total assets under management dropped 7% across the twelve-month period to finish at $36.7 billion.

"The combined group delivered pro forma revenue of $778 million for the year and maintains a balance sheet with meaningful headroom for growth," the company said in a statement.

Statutory net profit after tax declined 47% to $88 million after recording $38 million in fair value losses on fund investments and $11 million in merger expenses.

On a combined pro forma basis including Barrenjoey, the group generated total revenue of $778 million and an operating profit after tax of $215 million.

Following the announcement, the Magellan Financial Group share price was down at $9.69.

The business declared a final fully franked dividend of 25.5 cents per share based on second-half earnings across the combined entity.