Earnings call transcript: nib Holdings posts stronger FY 2026 profit, shares fall on outlook

nib Holdings reported a 9.1% increase in underlying operating profit and a 6.2% rise in revenue for the FY 2026, but its shares tumbled 8.38% to $6.78 as investors focused on slower policyholder growth, higher acquisition costs, and a cautious outlook for the upcoming year. Net profit after tax fell 5.9% to AUD 186.9 million, while free cash flow turned positive, reaching AUD 27 million.

Management projected group underlying operating profit to range between AUD 265 million and AUD 285 million for FY 2027, excluding nib Travel. The company's dividend payout target was raised to 65% to 75%, and a final dividend, including a special payout, was declared. Despite the stronger FY 2026 results, shares fell sharply, indicating investors' concerns about growth and margin risks.