Tower Limited (TWR) Earnings Call Transcripts

Tower Limited's Latest Earnings Call - May 20, 2026

In the first half of fiscal year 2026, Tower Limited (TWR:NZ) reported an underlying net profit after tax of $36.8 million, a decline from $61.7 million in the prior year, primarily due to increased weather-related claims and pricing pressures. Revenue growth was modest at 1%, with management adjusting guidance for gross written premium (GWP) growth to low-single-digits from a previous target of 5% to 10%. The company declared an interim dividend of $0.05 per share, reflecting its commitment to shareholder returns despite the challenging operating environment.

Reported metrics

Guidance from management

For FY '26, Tower now expects GWP to grow by low-single-digits, down from previous guidance of 5-10%. Underlying NPAT is anticipated to be between $55 million and $65 million, with a large events allowance maintained at $45 million.

What management said

Yes, nothing material at this stage. You could maybe say that we're starting to see a small benefit in May, but it's still early days. And so whether that's real or whether that's just sort of April was an interesting month with a lot of holidays, too, in New Zealand. But yes, there is -- maybe we're starting to see a little bit of a benefit from that in May. But again if we'll react as and when we see it, too.

Thank you, everybody, for joining us this morning. I hope we've answered not just the questions of the people that asked them, but also in doing so, a number of other questions. As Paul said, we are proud of the performance that we have had over the first 6 months of the year and are looking forward to the next 6 months. Thank you, everybody.

What analysts pressed on

Analysts expressed concerns regarding the downward revision of GWP guidance and the impact of ongoing pricing pressures. There were also inquiries about the company's ability to manage remediation costs and the potential for future large events impacting profitability.

Main topics on the call

• Revenue Growth and Guidance Adjustment — Tower's GWP growth was only 1% for the half, leading management to revise their guidance down to low-single-digits from 5-10%. CEO Paul Johnston stated, "It's remained a particularly challenging economic environment out ...
• Increased Weather-Related Claims — The company experienced a significant rise in claims due to weather events, with large event costs reaching $18.5 million compared to just $3 million in the prior period. This increase was attributed to "4 large events i...
• Customer Growth and Policy Retention — Despite the challenges, Tower welcomed 15,000 new customers, achieving a 9% growth in house policies. This aligns with their strategy to grow their home portfolio, which is crucial for retention. Paul Johnston noted, "We...
• Technological Investments and Efficiency Gains — Tower continues to invest in technology, with improvements in their AI-enabled contact center leading to a 15% reduction in customer interaction time. Johnston emphasized, "Our digital and technology investments continue...

Read the full Tower Limited transcript (May 20, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 18 Tower Limited earnings call transcripts on record, spanning February 13, 2020 to May 20, 2026. Based on this history, Tower Limited reports semi-annually. The most recent call on file is dated May 20, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

TWR

Exchange

NZSE

Country

NZ

Sector

Financials

Industry

Insurance

Calls on record

18

First call

February 13, 2020

Most recent

May 20, 2026

Reporting cadence

semi-annually