Jardine Matheson posts 9% growth in H1 underlying profit to US$735 million

[SINGAPORE] Jardine Matheson Holdings (JMH) reported a 9 per cent growth in underlying profit for the first half ended Jun 30 to US$735 million, from US$676 million in the previous corresponding period.

On the adjusted basis, higher contributions from Jardine Pacific, Hongkong Land, DFI Retail, and lower financing costs, more than offset challenging conditions in Astra’s mining solutions business, said the group in a bourse filing on Thursday (Jul 30).

Its board has declared an interim dividend of US$0.65 per share, up 8 per cent from US$0.60 in H1 2025. The dividend will be paid on Oct 14.

Revenue for the period dropped 7 per cent to US$15.9 billion from US$17.1 billion a year prior. Reported earnings rose 3 per cent to US$542 million in H1 2026 from S$528 million a year ago.

The group said it has made progress in recycling capital, exiting below-hurdle assets and deploying capital toward businesses – existing and new – that improve its quality of earnings.

“In H1, JMH and its portfolio companies recycled US$1.5 billion in capital, and reinvested and committed to invest US$3.2 billion to support investment opportunities in businesses. We expect to make significant progress in H2 2026 on further capital recycling,” said the group.

In a separate bourse filing on Thursday, JMH’s subsidiary Jardine Cycle & Carriage (JC&C) proposed a special dividend of approximately US$0.73 per share, comprising a cash distribution and an in-specie distribution of its remaining Toyota Motor shares. This forms part of the group’s strategy to simplify its portfolio, unlock value, and enhance shareholder returns.

JMH’s full-year profit guidance remains unchanged and is in line with 2025, adjusted for business disposals and the reclassification of an associate, said chief executive officer Lincoln Pan. He added that full-year JMH dividend is expected to grow 5 per cent to US$2.47 per share.

Astra International’s contribution to JMH’s underlying net profit fell 8 per cent to US$358 million. Excluding non-recurring items, its net profit declined 7 per cent year on year to 14.8 trillion rupiah amid softer domestic economic conditions.

“While there is much work ahead together with Astra, we expect H2 2026 to see modest improvements in macroeconomic conditions, stronger performance in the mining solutions and heavy equipment segment, supported in part by the Martabe gold mine returning to operation in the second quarter,” said Pan.

Hongkong Land’s contribution to JMH’s underlying net profit was 14 per cent higher year on year at US$140 million, due to lower net financing charges. Meanwhile, DFI Retail’s contribution rose 11 per cent on year to US$90 million due to improved operating profit and lower financing costs.

“Underlying earnings and free cash flow remain robust and our strong execution of recycling initiatives across the portfolio positions Jardines well for further investment activities in the next 12 months,” said Pan.

He added: “Our focus as we enter H2 is to continue driving total shareholder returns, improving cash flow across our portfolio, portfolio simplification and importantly, integrating I-MED Radiology Network into our portfolio.”

JMH acquired I-MED Radiology Network earlier this year for A$3.4 billion.

Shares of JMH closed 0.6 per cent or US$0.40 lower at US$67.59 on Thursday, before the release of its results.