Steadfast upgrades earnings outlook

17 February 2023

Steadfast has raised its earnings guidance to take into account how its business has performed since the start of the 2022/23 financial year.

The broking group now expects full-year underlying earnings before interest, tax, depreciation and amortisation (EBITA) to fall between $420 million and $430 million. Its previous forecast was in the range of $400-420 million.

Its underlying net profit after tax has been revised to $198-208 million from $190-202 million.

Steadfast says in a brief market update the revised outlook is based on management’s review of the preliminary results for the seven months to January.

The update comes ahead of the release next Wednesday of Steadfast’s first-half results for the six months to December.

Steadfast previously said in an update last October that underlying EBITDA for the September quarter was about 24% better than a year earlier and ahead of projections.

CEO Robert Kelly said higher premium rates after recent catastrophes, along with volume growth, were driving earnings higher.