Tower (ASX:TWR) updates FY24 guidance and anticipates significant increase in underlying NPAT

Tower (ASX:TWR) has updated its earnings guidance on underlying net profit after tax (underlying NPAT) for the year ending 30 September 2024. The company anticipates FY24 full year underlying NPAT to be around $83m, up from greater than $45m as previously advised, due to no large events being recorded in the financial year and stronger-than-expected business performance, particularly in claims.

Executive Commentary on FY24 Guidance Update

Tower's previous market guidance assumed full utilisation of the FY24 large events allowance which was conservatively set at $45m. As no large events were recorded in the financial year, the unused allowance has increased expected underlying NPAT by $32m ($45m less tax). Reported profit is expected to be around $74m after allowing for an increase in payments related to customer remediations and associated costs, including those related to regulatory action.

Summary of Tower's FY24 Guidance Update

Tower (ASX:TWR) has updated its FY24 guidance, expecting a significant increase in underlying NPAT to around $83m, up from greater than $45m as previously advised. This is attributed to no large events being recorded in the financial year and stronger-than-expected business performance, particularly in claims. Tower will provide full details of its FY24 performance in its financial results announcement on 28 November. The reported profit is expected to be around $74m after allowing for an increase in payments related to customer remediations and associated costs, including those related to regulatory action. The company's outlook for FY24 appears positive, with a focus on delivering strong financial performance and addressing customer remediations and associated costs effectively.