ASX Limited (ASX:ASX) Announces Investor Forum 2025 and Financial Guidance
Strategic Progress
ASX Limited is advancing its five-year FY28 New Era strategy, focusing on its technology modernisation program and engaging customers and stakeholders.
Financial Guidance
For FY25, total expense growth is expected between 6% and 9%, and operating expense growth between 4% and 7%. For FY26, total expense growth is projected between 8% and 11%, with operating expense growth remaining between 4% and 7%. Capital expenditure for FY25 and FY26 is guided to a narrowed range of $170-$180 million, with plans to reduce after FY27. ASX aims to maintain a dividend payout ratio of 80-90% of underlying net profit after tax and target EBITDA margin expansion over the medium term, with an underlying ROE target range of 13.0% to 14.5%.
Operational Highlights
ASX continues progress on replacing CHESS, targeting go-live for Release 1 in Q4 FY26. The Cash Market Trading project is in its final stages, and the ASX24 platform has been upgraded to improve interest rate futures liquidity. The company has developed a new pricing policy for Clearing, Settlement and Issuer Services and established the Accelerate Program to enhance operational risk management and resilience. Disciplined expense management initiatives are expected to save approximately $17 million by FY26. Listings activity has attracted net new capital of $24.7 billion YTD to 31 May 2025. ASX launched three environmental futures contracts, Wallumbilla natural gas futures, and the ASX Colo OnDemand infrastructure service.
Executive Comments
Managing Director and CEO Helen Lofthouse stated, “It’s pleasing to be at the stage in our strategy where we can show steady progress of key deliverables. This is particularly the case for our technology modernisation program and in the way we’ve been engaging with our customers and stakeholders.” Ms Lofthouse also commented, “Our revenue growth ambition and ongoing focus on expense management are drivers of the financial measure of success for ASX, and we are targeting EBITDA margin percentage expansion over the medium term.” “We continue to execute against our strategy, and our operating expenses and capex requirements are reflective of where we are in our five year plan. The investments we are making today are building the capabilities to drive revenue growth and underpin shareholder value in the longer term,” Ms Lofthouse added.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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