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Highlights
- ASX anticipates higher costs into FY26
- Legal and tech outlays drive expense forecasts
- Long-term focus on margin and ROE up
Australian Securities Exchange (ASX:ASX) has forecast a notable uptick in expenses for the 2026 fiscal year, driven primarily by increased investment in technology, legal costs, and strategic program delivery. The announcement was shared ahead of its investor forum and reflects the bourse operator’s continued focus on infrastructure modernisation and compliance readiness.
Expense Outlook and Capex Trends
For the current financial year (FY25), ASX expects total expense growth to align with its existing guidance, landing near the mid-point of its projected 6%–9% range. Operating expenses are also projected to settle around the middle of the 4%–7% range.
Capital expenditure (capex) for FY25 remains within the previously indicated band of $170 million to $180 million. For FY26, total expenses are expected to increase more sharply, guided between 8% and 11%. Operating expense growth is expected to persist within the 4% to 7% range, mirroring FY25 but on a larger expense base.
Key cost drivers in FY26 include software licensing charges, continued efforts under the new Accelerate Program, and legal costs stemming from ongoing regulatory scrutiny by ASIC. The capex projection for FY26 mirrors FY25, staying in the $170 million–$180 million range. ASX has signaled a slight reduction in capex from FY27, guiding a range of $160 million to $180 million.
Strategic Programs and Operational Focus
The Accelerate Program is a newly introduced initiative intended to bolster ASX’s capabilities in operational risk management, customer engagement, and business resilience. ASX’s leadership highlighted the importance of these initiatives in building a foundation for long-term growth.
CEO Helen Lofthouse acknowledged the steady delivery of key objectives, especially in technology upgrades and stakeholder interaction. However, she also stressed that work remains to reinforce the company’s operational risk posture and resilience mechanisms.
Long-Term Financial Targets
ASX reiterated its medium-term ambition to enhance its EBITDA margin and maintain a strong underlying return on equity (ROE), targeted between 13% and 14.5%. These metrics are central to the exchange’s roadmap for sustainable value creation.
Investors focused on ASX dividend stocks may find these developments significant, especially as capital allocation remains a key element of ASX’s broader strategy.
With its foundational investments and modernisation initiatives, ASX’s positioning within the S&P/ASX200 remains pivotal as it navigates upcoming regulatory and operational challenges while seeking to optimise shareholder returns.
