Soul Patts Shares Break to Record High: Is A$45 Now Support?

Soul Patts shares (ASX: SOL) are trading at all-time highs of A$45.64, up 22.06% year-to-date, as markets digest a potent combination of robust half-year earnings, accelerating net asset value growth, and a structural transformation that is reshaping Australia’s oldest listed investment house into a diversified multi-asset platform.

The Soul Patts share price is at the ATH into today’s open at A$45.64, marking the fifth consecutive hold above the psychologically important A$45 level and cementing what technical analysis followers are pointing to as a potential new support zone that could set up a more meaningful move. The SOL share price has surged 22.06% since the start of the year, with the breakout above prior resistance around A$44–45 exhibiting characteristics of a cup-and-handle continuation pattern on the charts.

What has driven Soul Patts shares to highs?

The catalyst for the rally at Soul Patts was an impressive half-year FY26 result, with the print on 26 March revealing net asset value growth of 9.7% for the six months to 31 January 2026, outpacing the company’s benchmark by a substantial 6.6 percentage points. Regular net profit after tax, which excludes major non-recurring items, rose approximately 6–7% to A$304 million, driven by stronger trading gains and improved property contributions that more than offset weaker earnings from the company’s New Hope coal exposure amid softer thermal coal prices.

Net cash flow from investments climbed 15.4% to A$334 million, providing management with the firepower to lift the interim dividend by 9.1% to A$0.48 per share. The payout extends Soul Patts’ remarkable 123-year uninterrupted dividend record and marks more than two decades of consecutive annual dividend growth, a track record that underpins the stock’s appeal to income-focused portfolios.

The results also highlight Soul Patts’ ongoing strategic pivot from a concentrated listed equities investor into a diversified investment house spanning listed stocks, private equity, property, credit, and real assets. This transformation accelerated following the court-approved merger with Brickworks in mid-2026, which created a combined vehicle with enhanced scale, balance-sheet strength, and access to high-quality infrastructure-style cash flows. The integration of Milton Corporation and the Brickworks combination have repositioned Soul Patts as what management now explicitly describes as a pure diversified investment company.

Portfolio management actions over the past year underscore this evolution.

Soul Patts has been systematically reducing its large stake in TPG Telecom, offloading approximately A$650 million of stock in 2025–26 to recycle capital away from a structurally challenged telecommunications asset. Simultaneously, the company has demonstrated its ability to structure complex, yield-plus-upside deals, exemplified by a US$30 million senior secured convertible note facility extended to Peninsula Energy in May–June 2026 to finance the Lance uranium project. The transaction, executed through Soul Patts affiliate SP Financing 1 Pty Ltd, combines secured debt with equity optionality, showcasing the company’s flexibility as a capital allocator willing to pursue contrarian opportunities in higher-beta sectors.

Valuation and Setup

Price Targets

At current levels, Soul Patts commands a market cap of A$17.34 billion and trades on a trailing price-to-earnings ratio of roughly 7.12 times, based on trailing twelve-month earnings per share of around A$6.40. The modest earnings multiple, combined with a growing dividend yield and the company’s proven long-term compounding record, forms the core of the bull case. Soul Patts’ total shareholder returns remain compelling, with five-year annualised TSR of approximately 10%, fifteen-year TSR of 11%, and twenty-five-year TSR of 13% as of 31 January 2026.

The technical picture suggests that if A$45 continues to hold on a closing basis over the coming sessions, the level is likely to be validated as genuine support, potentially opening the door to a measured move higher based on the depth of the prior consolidation base.

Bulls argue that the breakout reflects markets finally assigning a higher multiple to the transformed business model, with the combination of strong NAV growth, rising cash flows, and disciplined capital allocation justifying further upside from current levels.

However, after a gain of more than 20%, the stock is now in a phased of price discovery above a multi-month range, one which carries the risk of a shakeout or failed breakout if macro sentiment deteriorates or if upcoming portfolio updates disappoint.

Markets will be closely watching whether Soul Patts can continue to hold A$45 in the sessions ahead, and whether management can continue to demonstrate the disciplined, opportunistic capital allocation that has defined the company’s century-plus history. The balance between defensive compounding and the pursuit of higher-return, higher-risk opportunities will likely determine whether the current breakout marks the start of a new secular leg or simply a catch-up to fundamentals that leaves limited room for further near-term gains.