Altus Group Reports Q4 & Fiscal 2025 Financial Results & Quarterly Dividend

Core Insights - Altus Group Limited has increased its capital return objectives for 2026 to up to $800 million and has renewed its normal course issuer bid (NCIB) [1][16][18] - The company reported strong financial results for Q4 2025, with a revenue increase of 3.6% year-over-year, and a significant rise in adjusted EBITDA by 26.9% [5][4] - The company is implementing changes to its organizational structure and go-to-market approach, aiming for cost savings and simplification of its portfolio [3][9] Financial Performance - Q4 2025 revenue was C$131.9 million, up from C$126.4 million in Q4 2024, representing a 3.6% increase [5] - Recurring revenue for Q4 2025 was C$107.7 million, a 5.7% increase from C$101.1 million in Q4 2024 [5] - Adjusted EBITDA for Q4 2025 was C$37.0 million, up 26.9% from C$28.8 million in Q4 2024, with an adjusted EBITDA margin of 28.0% [5][4] Business Outlook - For fiscal 2026, the company expects revenue growth of 4-6%, with recurring revenue growth of 5-7% [9][10] - The adjusted EBITDA margin is anticipated to expand by 350-450 basis points [9] - The guidance does not currently include the planned divestiture of the Development Advisory business or other non-core products [11] Capital Return Initiatives - The Board has approved a cash dividend of C$0.15 per common share for Q1 2026, payable on April 15, 2026 [13] - The company plans to return up to an additional C$300 million to shareholders within the first half of 2026, alongside the increased capital return objectives [16][17] - The NCIB allows for the purchase of up to 3,248,929 common shares over the next 12 months, representing approximately 10% of its public float [19][20] Organizational Changes - The company is making targeted changes to its organizational structure and has initiated cost actions expected to generate millions in annual savings [3][9] - Altus Group has begun simplifying its portfolio, including the announced sale of its Appraisals business [3][11]