Highlights

• WAM Capital recorded an FY26 operating loss as weaker small and mid-cap holdings weighed heavily on investment portfolio performance.
• The company maintained its FY26 distribution at 15.5 cents per share, supported by accumulated profit reserves despite lower net tangible assets.
• Management has set a reduced FY27 dividend target as it seeks to rebuild reserves and preserve the company’s capital base.

FY26 Results Reflect Difficult Market Conditions

WAM Capital Limited (ASX: WAM) released its Appendix 4E and 2026 Annual Report on 28 August 2026, covering the year ended 30 June 2026. The listed investment company reported an operating loss before tax of AU$186.7 million, compared to a profit of AU$304.0 million in FY25. The after-tax result shifted to a loss of AU$125.9 million, from a profit of AU$219.6 million a year earlier.

Portfolio Performance Weighs on NTA

WAM Capital’s investment portfolio declined 10.5% during FY26, while the S&P/ASX All Ordinaries Accumulation Index gained 5.7% and the S&P/ASX Small Ordinaries Accumulation Index advanced 8.1%. Management attributed the weaker result to sector positioning, stock selection and challenging conditions for undervalued small and medium-sized companies. Pre-tax net tangible assets fell to AU$1.22 per share at 30 June 2026 from AU$1.57 a year earlier, while post-tax NTA decreased to AU$1.40 from AU$1.67. Despite the portfolio decline, total shareholder return including franking credits was 7.8%, helped by the share price moving from a discount to a premium relative to NTA.

Dividend Maintained Despite Earnings Pressure

The Board declared a 7.75-cent-per-share final dividend, 60% franked, taking total FY26 distributions to 15.5 cents per share. The final payment is scheduled for 21 October 2026. Following the distribution, the profits reserve is expected to stand at 5.6 cents per share.

Outlook

For FY27, WAM Capital has established a full-year dividend target of 8.0 cents per share, comprising two intended payments of 4.0 cents each. The target is not guaranteed and depends on positive portfolio performance generating sufficient profits. Management expects improving conditions for selected technology, healthcare, retail and property companies, although investment execution will remain critical after FY26’s underperformance.

Note- All data presented is based on information available at the time of writing.

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