UK's XPS Pensions FY profit beats estimates as regulatory changes drive advisory demand
UK's XPS Pensions FY profit beats estimates as regulatory changes drive advisory demand
Overview
UK pensions consulting firm's FY 2026 revenue rose 13%, slightly beating analyst expectations
Adjusted EPS for FY 2026 beat analyst expectations
Adjusted EBITDA for the year beat analyst expectations
Outlook
XPS expects further growth in FY 2027 and beyond in line with Board expectations
Company sees high demand for services driven by regulatory changes and surplus extraction options
Metropolitan Police Pension Scheme contract to go live in late FY 2027, expanding public sector client base
Result Drivers
ADVISORY DEMAND - 20% growth in advisory revenues was driven by regulatory changes, high demand for risk transfer and GMP services, and support for insurance clients
ADMINISTRATION PROJECTS - Administration revenue growth of 5% was supported by strong demand for GMP and other project work, as well as onboarding new client wins
INSURANCE CONSULTING EXPANSION - Integration of the Polaris acquisition and continued investment in insurance consulting led to increased opportunities and revenues from insurers
Company press release: ID:nRSR7445Ia
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Slight Beat* | GBP 262.70 mln | GBP 261.74 mln (10 Analysts) |
FY Adjusted EPS | Beat | GBP 0.24 | GBP 0.21 (10 Analysts) |
FY Adjusted EBITDA | Beat | GBP 75.70 mln | GBP 74.29 mln (9 Analysts) |
FY Pretax Profit |
| GBP 38.70 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy"
Wall Street's median 12-month price target for XPS Pensions Group PLC is GBp460.00, about 45.1% above its June 17 closing price of GBp317.00
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)