Soul Patts Posts 15% Revenue Growth as Brickworks Returns to Profit in FY25

Merger Completion and Market Impact

In a landmark move for the Australian investment landscape, Washington H. Soul Pattinson and Company Limited (Soul Patts) and Brickworks Limited have successfully merged, consolidating a 56-year cross-shareholding into a streamlined, diversified investment powerhouse. The merger, effective from September 2025, has created a group with enhanced scale and financial strength, now trading under the Soul Patts ticker SOL on the ASX.

This strategic union simplifies a complex ownership structure and positions the combined entity to leverage diversified portfolios spanning property development, building products, and a broad investment portfolio.

Soul Patts FY25 Standalone Financials

Soul Patts reported standalone FY25 results prior to the merger’s implementation, with revenue climbing 15% to $954.6 million. This growth was driven by strong performances in private equity, credit portfolios, and dividend income, despite some offsetting factors such as lower other revenue streams.

However, statutory net profit after tax declined by 27% to $364.2 million, reflecting merger-related implementation costs and a mixed portfolio performance. Notably, regular net profit after tax showed a modest increase, underscoring the underlying business resilience. The company declared a fully franked final dividend of 59 cents per share, continuing its commitment to shareholder returns.

Brickworks’ Financial Turnaround and Operational Highlights

Brickworks reported a significant turnaround with a statutory profit of $30 million for FY25, a stark contrast to the prior year’s loss of $119 million. This improvement was largely attributed to positive non-cash property revaluations and operational discipline within its building products divisions, despite subdued market conditions in Australia and North America.

The property division saw a 252% increase in EBITDA to $167 million, supported by ongoing development projects such as the Oakdale East Amazon facility and strong rental income growth. Meanwhile, the Australian building products segment maintained stable margins, while the North American operations faced challenges due to market softness and competition.

Brickworks declared a fully franked final dividend of 48.4 cents per share, reflecting confidence in its cash flow and capital management.

Post-Merger Integration and Capital Management

Following the merger, Brickworks was delisted from the ASX, and the new combined entity commenced trading on 24 September 2025. The merger facilitated a partial repayment of Brickworks’ $509 million debt facilities, funded by proceeds from the Topco equity raising and a subordinated shareholder loan.

The combined group benefits from a strengthened balance sheet and diversified asset base, with significant liquidity available for future investments. Management has emphasized the long-term growth prospects supported by a diversified portfolio and operational synergies expected from the merger.

Sustainability and Governance Focus

Both companies have underscored their commitment to sustainability, with Brickworks advancing carbon reduction targets and receiving top ESG ratings, including Sustainalytics and MSCI AAA ratings. Soul Patts continues to maintain a diversified portfolio with a long-term investment horizon, emphasizing capital growth and regular dividends.

The merged group’s leadership team, including newly appointed directors and executives, is focused on integrating operations while maintaining strong governance and risk management frameworks.