McMillan Shakespeare delivers record FY26 result with underlying EPS up 13.8%
In its FY26 full-year results presentation delivered on 28 August 2026, McMillan Shakespeare reported a record Underlying Net Profit After Tax and Amortisation (UNPATA) of $107.9m, up 13.8%, alongside record Underlying Earnings Per Share (EPS) of $1.55, also up 13.8%.
Revenue reached $602.1m, up 6.8%, while the operating margin expanded 250bps to 41.5% and Return on Capital Employed (ROCE) reached 62.1%. The company declared a fully franked full-year dividend of $1.32 per share, representing a dividend yield of 6.6%, based on FY26 declared dividends and the 30-day VWAP to 21 August 2026.
Management attributed the result to customer growth across all three segments combined with productivity-driven operating leverage. Results are stated on a Continuing operations basis and are no longer Normalised.
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FY26 financial results at a glance
The “record” designation applies to UNPATA and Underlying EPS, each representing a record annual figure for the company. Margin expansion featured prominently, with the operating margin up 250bps, EBITDA margin up 193bps, and the cost-to-income ratio down 250bps to 58.5%.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue | $602.1m | $563.9m | ↑6.8% |
| EBITDA | $180.7m | $158.3m | ↑14.1% |
| UNPATA | $107.9m | $94.8m | ↑13.8% |
| Statutory NPAT (Cont. Ops) | $106.7m | $95.8m | ↑11.4% |
| Underlying EPS | $1.55 | $1.36 | ↑13.8% |
| ROCE | 62.1% | 61.0% | ↑83bps |
Management commentary
The presentation framed the result around strategy execution delivering superior customer experiences, enhanced distribution, and improved operating margins, with attractive returns for shareholders reflected in the ROCE of 62.1% and fully franked dividend of $1.32 per share.
Segment performance drove the result
Group Remuneration Services (GRS)
GRS was the primary growth engine, with revenue of $351.0m (↑11.2%) and EBITDA of $137.2m (↑24.8%). Its operating margin rose 498bps to 42.8%.
Salary packages reached 402k (↑7.1%) and novated leases grew to 90k (↑13.5%). Segment UNPATA came in at $82.5m, up 24.9%.
Asset Management Services (AMS)
AMS revenue was $188.4m (↑1.3%), with the operating margin remaining strong at 53.6% and fleet units rising to 16k (↑3.3%). EBITDA softened 4.8%. WDV and remarketing units decreased, reflecting slowing client fleet replacement cycles.
The segment also absorbed a $0.7m one-off cost to establish business process outsourcing (BPO) and consolidate car yards for future efficiencies.
Plan and Support Services (PSS)
As the #2 Plan Manager, PSS grew customers to 44k (↑3.0%) and revenue to $59.8m (↑5.9%), despite the NDIS removal of set-up fees on 1 July 2025. The segment invested $1.1m in enhanced fraud detection and verification capabilities.
What “operating leverage” means for MMS investors
Operating leverage occurs when revenue grows faster than costs, so profits rise disproportionately. When a business adds customers without adding equivalent expense, each additional dollar of revenue converts more efficiently into profit.
The FY26 result illustrated this dynamic. Full-time equivalents (FTEs) fell to 1,263 (a reduction of 75) while customers per FTE rose to 437 (up 54). Revenue grew 6.8% while operating expenses grew only 2.8%.
For investors, this productivity gap drove the 250bps margin expansion and record EPS, pointing to a scalable, digitally-enabled model. Management noted AI and data-enabled productivity gains, including a 13% reduction in average handling time within GRS operations.
Balance sheet strength and shareholder returns
The company reported a low-leverage balance sheet, with net debt to EBITDA at 0.4x (from 0.5x) and interest cover of 11.9x (from 10.3x). Cash at bank stood at $95.9m.
Underlying cash conversion remained strong at 111%, excluding a temporary tax timing difference. This reflected elevated FY26 tax instalments as Temporary Full Expensing benefits revert, a timing item rather than an operational deterioration.
On dividends, the company declared an interim dividend of 62cps and a final dividend of 70cps, totalling $1.32 fully franked, representing a yield of 6.6%.
Key dates for the final dividend:
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Ex-dividend: Thursday 10 September 2026
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Record date: Friday 11 September 2026
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Payment date: Friday 25 September 2026
Three-year track record since setting strategy in 2023
The presentation highlighted a compounding growth trajectory since the strategy was set in 2023:
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Revenue: $464.0m → $602.1m (+9.1% CAGR)
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UNPATA: $66.4m → $107.9m (+17.6% CAGR)
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Underlying EPS: $0.92 → $1.55 (+18.9% CAGR)
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ROCE: 35.7% → 62.1% (↑26.4 percentage points)
This trajectory reflects consistent execution against the “Making Matters Simple” strategy. The company also noted its MSCI ESG rating was upgraded to ‘AAA’ from ‘AA’ in March 2026.
FY27 outlook: entering from a position of strength
Management outlined a supportive environment for FY27, noting July 2026 novated lease sales momentum up 8%. Certainty on the electric vehicle (EV) Fringe Benefits Tax (FBT) exemption and a shifting preference toward EVs across novated and fleet were flagged as tailwinds, alongside continued demand for salary packaging amid cost-of-living and inflationary pressures.
Remarketing income is expected to reflect elevated EV demand and softer demand for internal combustion engine (ICE) used vehicles. As the second largest and well-positioned Plan Management provider, the company noted continuing engagement with government on emerging NDIS reforms.
The presentation reaffirmed ongoing execution of three strategic priorities: excelling in customer and partner experience, delivering simplified and scalable solutions, and driving technology and capability enablement.
The company enters FY27 as a scaled, digitally-enabled provider with high ROCE, strong margins, and a fully franked yield, supported by continued momentum across its segments.
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