XPS Pensions Group delivered full-year results for fiscal 2026 that exceeded market forecasts, driven by stronger-than-expected advisory activity and expansion in its insurance consulting operations.
The consulting firm reported adjusted earnings per share of .24 for the year, ahead of the .21 average forecast compiled from 10 analysts. Total revenue reached .70 million, marginally beating the consensus figure of .74 million. Adjusted EBITDA was reported at .70 million, above the analyst expectation of .29 million, and pretax profit for the period was .70 million.
On a year-over-year basis, group revenue rose 13%. The advisory division led the top-line advance with a 20% increase in revenues - a performance the company attributed to regulatory changes that have pushed demand for advisory support, along with growth in risk transfer and GMP-related services and additional work for insurance clients. Administrative services also expanded, with administration revenue up 5%, supported by GMP and project work and the onboarding of new clients.
The company said its insurance consulting business has strengthened following the integration of the Polaris acquisition. Management indicated that the deal created incremental opportunities and revenue streams from insurer clients, contributing to the overall performance for the year.
Looking ahead, XPS expects growth to continue in fiscal 2027 and beyond in line with board expectations. The company highlighted sustained demand for its services resulting from regulatory developments and available surplus extraction options as the primary ongoing drivers. Separately, XPS noted that the Metropolitan Police Pension Scheme contract is slated to begin operations in late fiscal 2027, which will broaden the firm s exposure within the public sector client base.
Below are key takeaways from the results and commentary provided by the company:
- Beat on core metrics - Adjusted EPS of .24, revenue of .70 million and adjusted EBITDA of .70 million all exceeded analyst averages.
- Advisory-led growth - Advisory revenues grew 20%, driven by regulatory change, risk transfer activity and GMP services, alongside support to insurance clients.
- Insurance consulting expansion - The Polaris acquisition has been integrated and the insurance consulting business has expanded, producing additional insurer-related revenues.
Management commentary and forward guidance highlighted continued demand tied to regulatory drivers and surplus extraction options, and confirmed the timeline for the Metropolitan Police Pension Scheme contract to commence in late fiscal 2027.