Broadridge(US:BR)2026-02-03 12:59Revenue Growth - Recurring revenues increased by 9% to $1,070 million in Q2 FY'26, with constant currency growth at 8%[2] - Total revenues rose 8% to $1,714 million, while operating income decreased by 2% to $206 million[2] - Distribution revenues increased by 14% to $553 million, driven by higher communication volumes and a postage rate increase[8] - Wealth and Investment Management revenue rose 17%, driven by 11 percentage points from the SIS acquisition and 6 percentage points of organic growth[23] - Total revenues for the six months ended December 31, 2025, reached $3,303.3 million, an increase of 10% from $3,012.1 million in 2024[47] - Recurring revenues for the total company increased by 9% to $2,047.6 million for the six months ended December 31, 2025, compared to $1,880.5 million in 2024[51] - The company experienced a 14% increase in distribution revenues for the three months ended December 31, 2025, reaching $553.2 million compared to $484.5 million in 2024[51] Earnings Performance - Diluted EPS surged 102% to $2.42, and Adjusted EPS increased by 2% to $1.59[2] - Net earnings doubled to $285 million, while Adjusted Net earnings rose by 1% to $187 million[8] - Earnings before income taxes increased by $194.2 million, or 110.0%, to $370.2 million compared to $176.0 million in the prior year[40] - Net earnings for the six months ended December 31, 2025, were $450.0 million, up 102.5% from $222.2 million in the same period of 2024[40] - Basic earnings per share for the three months ended December 31, 2025, were $2.44, compared to $1.22 for the same period in 2024, reflecting a 100.0% increase[40] - Net earnings (GAAP) for the six months ended December 31, 2025, were $450.0 million, significantly higher than $222.2 million for the same period in 2024, marking an increase of 102.5%[57] - Adjusted net earnings (Non-GAAP) rose to $364.7 million for the six months ended December 31, 2025, compared to $302.7 million in 2024, an increase of 20.5%[57] Guidance and Projections - The company raised its FY'26 Adjusted EPS growth guidance to 9-12%[4] - Closed sales for FY'26 are projected to be between $290 million and $330 million[4] - The company expects FY26 adjusted operating income margin (Non-GAAP) to be between 20% and 21%[64] - The guidance for FY26 diluted earnings per share (GAAP) growth is projected to be between 32% and 36%[64] - Forward-looking statements indicate expectations for fiscal year 2026 financial guidance and three-year objectives, subject to risks and uncertainties[31] Operating Expenses and Cash Flow - Operating expenses increased by 12% to $1,096 million, driven by higher distribution and technology-related costs[12] - The company reported a net cash flow from operating activities of $367.1 million for the six months ended December 31, 2025, compared to $111.2 million in 2024[45] - Free cash flow (Non-GAAP) for the six months ended December 31, 2025, was $318.5 million, a substantial increase from $56.3 million in the same period of 2024[59] - Free cash flow is defined as net cash flows from operating activities less capital expenditures and software purchases, providing liquidity for dividends and strategic acquisitions[28] Acquisitions and Strategic Moves - The company completed the acquisition of Acolin Group for approximately $70 million, enhancing its cross-border fund distribution capabilities[18] - The total estimated pre-tax costs related to the closure of a production facility are approximately $20 million, expected to be completed in Q3 of fiscal year 2026[57] Segment Performance - Investor Communication Solutions segment revenues increased by 9% to $2,363.2 million for the six months ended December 31, 2025, compared to $2,164.8 million in 2024[51] - Global Technology and Operations segment revenues also grew by 11% to $940.1 million for the six months ended December 31, 2025, up from $847.2 million in 2024[51] Currency Impact - The impact of foreign currency exchange on recurring revenue growth is expected to be approximately -1% for FY26[64] - The effect of exchange rate changes on cash and cash equivalents resulted in a positive adjustment of $2.9 million for the six months ended December 31, 2025[45]