Soul Patts delivered a total shareholder return of 16.8% in FY26, substantially outperforming the ASX200’s 6.0% return. This marked the company’s continued trajectory of long-term outperformance, with the 5-year pre-tax NAV return reaching 11.5% per annum, exceeding the index by 3.5% annually. The result reflects active portfolio management and a strategic pivot away from pure equity concentration that has defined the company’s approach in recent years.
The $15 billion merger with Brickworks, completed in September 2025, reshaped the company’s balance sheet and asset base. Post-tax NAV per share grew 27.2% to $8.15, though this included a significant $0.8 billion in tax assets acquired through the merger transaction. Stripping out these one-off gains, the underlying pre-tax NAV return per share of 10.2% still outperformed the market by 4.2%, demonstrating that the operational benefits are real beyond the accounting gains.
The dividend narrative remains compelling. Soul Patts extended its streak to 28 consecutive years of dividend growth, declaring a final dividend of 63 cents per share, up 6.8% on the prior year. Over five years, dividend per share has grown at a 12.4% compound annual rate, far exceeding the 1.1% growth in ASX200 dividends over the same period. Net cash flows from investments grew 11.5% to $572 million, reflecting strong cash generation across the portfolio despite volatile markets. This cash generation underpins the sustainability of the dividend, though the payout ratio provides breathing room for reinvestment if opportunities arise.
Portfolio diversification has been a key feature of recent strategy. Listed equities have been dynamically reduced from 90% of the portfolio at the end of FY21 to a more balanced mix today. The company now holds $2.0 billion in global private partnerships, with a further $1.0 billion committed but undrawn, while $2.7 billion is allocated to fixed income to manage group liquidity. When the ASX has posted negative monthly returns, Soul Patts has historically performed 1.8% better per month, suggesting its defensive positioning provides genuine downside protection.
The $13.7 billion pre-tax NAV and $2.7 billion in net cash and liquid investments provide significant firepower to deploy into opportunities the company identifies as defensive and uncorrelated. Upcoming quarters will reveal whether the company can convert these assets into acquisitions or partnerships that sustain the long-term outperformance track record. Investors should monitor the deployment pace and composition of new investments, particularly the allocation between fixed income and opportunistic equity purchases. This announcement is price sensitive and has been flagged as material to the ASX.
View the full ASX announcement (PDF)
About Washington H. Soul Pattinson and Company Limited (ASX: SOL)
Washington H. Soul Pattinson and Company Limited is an Australian investment holding company with a diverse portfolio spanning listed and private companies, emerging companies, real assets, and credit investments. The company operates across multiple sectors including natural resources, telecommunications, agriculture, property, and financial services through major holdings such as TPG Telecom and New Hope Corporation. With origins dating back to 1903, it is one of Australia’s oldest publicly listed companies and manages approximately AUD 14 billion in net assets.
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