Judo Capital Loses $660 Million After Cutting FY26 Profit Outlook 40%

3 articles · Updated · ABC News · Jun 25

Judo Capital shed about $660 million in market value, plunging 40% in one session and shrinking from a $1.6 billion company to roughly $940 million after a trading update rattled investors.
FY26 pre-tax profit guidance was cut to $163 million-$169 million from $180 million-$190 million as the lender lifted bad-debt provisions, with cost-of-risk expectations rising to $116 million-$122 million.
J.P. Morgan said the higher credit costs appeared tied to conditions at three unnamed borrowers, but warned that offered only limited comfort given Judo's recent run of disappointing credit-quality updates.
FY27 guidance of $210 million-$220 million implies about 30% profit growth and Judo said stronger net interest margins should offset credit costs, yet analysts still expect earnings downgrades of 8% for FY26 and 15% for FY27.
The selloff helped drag the ASX lower, with the benchmark index down 0.7% as mining, energy and banking stocks also weakened.