Challenger posts $468M profit and dividends in FY26

• Challenger reported a normalised net profit after tax of $468 million for the 2026 fiscal year, alongside a statutory net profit of $506 million.
• The company increased its full-year ordinary dividend to 31.5 cents per share and expanded its share buyback programme to $450 million.
• Management stated that the financial results reflect ongoing execution of its growth strategy, increased annuity sales, and expanded retirement market partnerships.

Challenger (ASX:CGF) reported a normalised net profit after tax of $468 million for the 2026 fiscal year alongside a statutory net profit of $506 million.

EPS climbed to 68.1 cents per share, up 3% and in-line with earnings guidance.

"Our FY26 result reflects the successful execution of our strategy and the growing momentum across our business. We delivered strong earnings, increased annuity sales and continued to invest in the strategic priorities that will support Challenger’s future growth," said Challenger Managing Director and CEO Nick Hamilton.

The company also lifted its full-year ordinary dividend by 7% to 31.5 cents per share, added a special dividend of 1.5 cents per share, and upsized its on-market share buy-back to $450 million.

Following the announcement, the Challenger share price was up at $10.36.

Challenger's share buy-back programme has today been upsized to $450 million, comprising the previously announced $150 million on-market share buy-back and an additional $300 million, subject to market conditions and regulatory approval.

For FY27, Challenger's core basic EPS guidance is a range of between 45 cents per share and 49 cents per share. The midpoint of the FY27 core EPS guidance is 6% higher than the FY26 core EPS of 44.2 cents per share.