AUS
NZ
UK
CA
USA
IND
Highlights
- Australian Ethical Investment reported a 19% YoY rise in operating revenue in FY25, supported by growth in funds under management.
- In FY25, underlying profit attributable to shareholders increased by 29% YoY.
- FY25 funds under management closed at AUD 13.94 billion, up 34% YoY from FY24.
Australian Ethical Investment Limited (ASX:AEF) is an ASX-listed company that manages a wide range of ethically focused investment schemes and trustee of the Australian Ethical Retail Superannuation Fund. In the full-year for the period ended June 2025 (FY25), the company recorded growth across key financial metrics, supported by expanding funds under management (FUM) base and continued demand for responsible and values-aligned investment products.
Financial Performance for FY25
Australian Ethical reported total revenue of AUD 119.38 million for FY25, marking a 19% YoY increase from AUD 100.49 million in the previous financial year. The improvement was driven primarily by higher average FUM, partially moderated by a lower blended revenue margin following the Altius acquisition.
Underlying profit after tax attributable to shareholders reached AUD 23.80 million in FY25, a 29% YoY rise compared with FY24. Closing FUM expanded to AUD 13.94 billion, reflecting 34% YoY growth.
The company noted that the Altius acquisition contributed AUD 1.15 million in EBITDA on an annualised basis. Operational efficiency also improved, with the cost-to-income ratio reduced to 71.4%, compared with 73.7% in FY24.
Outlook Supported by Growth in Responsible Investing
The company expects profit expansion to continue into FY26, supported by organic FUM growth driven by compulsory superannuation rate increases, improved retention of members, and rising demand in the values-aligned middle-market channel. New revenue opportunities are anticipated from broadened private markets and fixed-income offerings, with potential for future international equity initiatives.
The company also expects FY26 to mark the completion of several major strategic initiatives started in FY25, including platform upgrades and capability enhancements intended to prepare the business for its next phase of development.
Recent Regulatory Update
On 27 November 2025, AEF announced that the Australian Prudential Regulation Authority (APRA) imposed additional licence conditions on Australian Ethical Superannuation Pty Ltd (AES). These conditions require the appointment of an independent expert to review certain related-party arrangements with its parent company.
AES stated that the conditions have been accepted and noted that member outcomes remain unaffected. The fund highlighted recent governance improvements, including board renewal activities, enhanced conflict-management measures and strengthened validation processes, all implemented over the past year.
Key Financial
During FY25, EBITDA margin improved to 30.4%, up from 27.3% YoY in FY24. Return on equity rose to 57.2% in FY25, compared with 40.5% a year earlier. However, asset turnover and current ratio metrics recorded declines, with asset turnover falling to 2.0x from 2.31x, and the current ratio easing to 1.97x from 2.04x.
Share Performance of AEF
AEF shares closed at AUD 5.27 on 2 December 2025. The stock has declined 15.95% over the past week and is down 24.61% across the last month. Despite these short-term losses, AEF shows a 5.40% gain over the past year. AEF’s 52-week high stands at AUD 8.31, recorded on 28 August 2025, while the 52-week low is AUD 4.53, reached on 6 February 2025.
Support and Resistance Summary
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 02 December 2025. The reference data in this report has been partly sourced from EODHD/Others.
Technical Indicators Defined:
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Disclaimer
This article has been prepared by Kalkine Media, echoed on the website kalkinemedia.com/au and associated pages, based on the information obtained and collated from the subscription reports prepared by Kalkine Pty. Ltd. [ABN 34 154 808 312; AFSL no. 425376] on Kalkine.com.au (and associated pages). The principal purpose of the content is to provide factual information only for educational purposes. None of the content in this article, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video is or is intended to be, advisory in nature. The content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including but not limited to, in respect of any particular security, transaction, or investment strategy, and must not be relied upon by you as such. The content is provided without any express or implied warranties of any kind. Kalkine Media, and its related bodies corporate, agents, and employees (Kalkine Group) cannot and do not warrant the accuracy, completeness, timeliness, merchantability, or fitness for a particular purpose of the content or the website, and to the extent permitted by law, Kalkine Group hereby disclaims any and all such express or implied warranties. Kalkine Group shall NOT be held liable for any investment or trading losses you may incur by using the information shared on our website.
