The SkyCity Entertainment Group Ltd (ASX: SKC) share price is in focus after the company reported underlying revenue of $822.7 million, nearly flat year on year, and underlying NPAT dropping to $38 million.

What did SkyCity Entertainment Group report?

• Underlying revenue: $822.7 million, down 0.3% on FY25
• Underlying EBITDA: $181.6 million, down 22.3%
• Underlying NPAT: $38 million, down 46.9%
• Reported NPAT: $18.2 million, down 37.6%
• Net debt: $591 million (net debt/EBITDA of 3.1x)
• No final dividend declared for FY26

What else do investors need to know?

SkyCity completed the sale of two Auckland properties for $74.5 million, with settlement due in September 2026. This forms part of an asset monetisation program expected to deliver up to $300 million in gross proceeds by December, with proceeds earmarked for debt reduction.

The NZICC opened in February 2026 and hosted 141 events in its first months, attracting around 100,000 visitors. A strong events pipeline is in place for FY27, with a projected 350,000 visitations.

A cost-out program is underway, expected to deliver $30 million in annual benefits in FY27 and $70 million by FY28. The program includes a restructure and operational reset, affecting predominantly New Zealand-based corporate roles.

What did SkyCity Entertainment Group management say?

Jason Walbridge, Chief Executive Officer, said:

In FY26, we implemented carded play across our New Zealand casinos, opened the NZICC, advanced our asset monetisation, exceeded our cost-out targets, continued preparing for the regulated New Zealand online gambling market, and settled in principle the outstanding major regulatory issues in Adelaide.

What’s next for SkyCity Entertainment Group?

No earnings guidance has been provided for FY27 given continuing macro uncertainty. However, the company expects $30 million in cost savings for the year ahead, partly offset by higher online costs as the New Zealand regulated online casino market opens in 2027. Capital expenditure is forecast between $80 million and $100 million, excluding potential online licence costs.

Management is focused on completing asset sales, lowering net debt, and delivering its cost-out and digital priorities. When positive cash flow returns, the company intends to reinstate dividends to shareholders.

SkyCity Entertainment Group share price snapshot

Over the past 12 months, the SkyCity Entertainment Group share price has underperformed both the S&P/ASX 200 index (ASX: XJO) and the wider travel and leisure sector, reflecting earnings pressure and regulatory challenges.

View Original Announcement

The post SkyCity shares on watch as FY26 profit falls but cost-out strategy advances appeared first on The Motley Fool Australia.

More reading

• MA Financial delivers record 1H26 earnings and lifts dividend
• Sonic Healthcare share price in focus on FY26 profit jump and digital push
• Ridley: FY26 profit jumps on fertiliser boost
• IPH Ltd FY26 earnings: resilient profit growth and higher dividend
• 2 ASX shares tipped to grow 40% or more in the next 12 months

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Universal Store Holdings Ltd (ASX: UNI) share price is in focus after the company reported a 12.9% rise in revenue to $376.1 million for FY26, with underlying NPAT up 16.3% to $40.5 million.

What did Universal Store report?

• Revenue of $376.1 million, up 12.9% from FY25
• Underlying net profit after tax (NPAT) of $40.5 million, up 16.3%
• Statutory NPAT of $18.2 million, down 21.6% due to non-cash impairments
• Gross margin of 62.5%, up 1.4 percentage points
• Underlying EBIT of $64.0 million, up 17.2%
• Final fully franked dividend of 17 cents per share (FY total dividends: 43.0 cps)

What else do investors need to know?

The group opened 13 new stores in FY26, ending the year with 123 physical locations across its Universal Store, Perfect Stranger, and THRILLS banners. Like-for-like growth was robust in Universal Store (+8.1%) and Perfect Stranger (+13.0%), though CTC (THRILLS) wholesale sales declined further, leading to $23.8 million in non-cash impairments.

Online sales rose 10.8% to $49.2 million, making up 13.1% of total revenue. Universal Store Holdings finished the year with a strong cash balance of $23.3 million and no bank debt, maintaining significant headroom on all covenants.

What’s next for Universal Store?

Universal Store plans to continue expanding its retail footprint, especially for Universal Store and Perfect Stranger, with a similar pace of store rollouts expected in FY27. The THRILLS retail and online strategy will remain a priority as the business focuses more on direct-to-customer channels.

Investments in digital, supply chain, and team capability will continue as the group aims for sustainable long-term growth. The board has also flagged upcoming changes in leadership, with George Do set to take over as CEO in November 2026.

Universal Store share price snapshot

Over the past 12 months, Universal Store shares have declined 21%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post Universal Store FY26 results: Sales, profit up as store rollout continues appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares with dividend yields above 8%
• How much is needed in superannuation to target a $12,000 monthly passive income?
• I’d buy 11,295 shares of this ASX stock to aim for $400 a month of passive income
• How much is needed in superannuation to target a $80,000 annual passive income?
• How much is needed in superannuation to target a $7,000 monthly passive income?

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

CSL Ltd (ASX: CSL) shares have surged 23% across the past two trading days to $166.48, lifting their monthly gain to 34%.

After plunging from $228.30 in October to a low of $90, the recovery is gathering serious pace. Yet CSL remains down 4% year to date and 32% over 12 months.

Can the rebound last?

Why are CSL shares surging?

The big catalyst was CSL’s FY26 result, released on Tuesday.

At first glance, the numbers looked ugly. CSL reported a US$2.6 billion net loss after tax. But that loss wasn’t an operating disaster.

It reflected US$7.1 billion of pre-tax impairments and another US$799 million in restructuring costs, largely non-cash. Most of the impairments related to CSL Vifor intangibles and under-utilised property, plant and equipment.

Investors had already been warned. In May, CSL flagged roughly US$5 billion of impairments and cut its FY26 guidance.

Strip away those exceptional items and the picture looks much healthier. Underlying NPATA came in at US$3.1 billion, down just 2%, while revenue slipped 1% to US$15.8 billion — still ahead of analyst expectations.

That gave investors in CSL shares something they had been waiting for: a reset year, a cleaner balance sheet and guidance that finally beat expectations.

CSL Behring remains the powerhouse. Its plasma division generated US$11.4 billion in revenue, down 1%, while immunoglobulin revenue held steady at US$6.2 billion. That’s crucial to the bull case.

CSL Vifor grew revenue 3% to US$2.4 billion, while Seqirus struggled, with revenue falling 8% to US$2 billion.

Meanwhile, CSL’s transformation program delivered US$176 million of cost savings, and management committed US$1.5 billion to expand US plasma collection capacity.

Guidance is driving the recovery

Here’s where things get interesting. CSL expects underlying NPAT to grow approximately 5% in FY27. Consensus had been closer to 2%.

After 18 months of downgraded expectations, that upgrade was a welcome surprise for shareholders in CSL shares. Behring is expected to deliver mid-single-digit growth, with immunoglobulins growing at a mid-to-high single-digit rate.

The weak spot remains Vifor, where revenue is expected to fall about 25% as iron generics arrive.

Are CSL shares fully valued?

Not everyone is convinced the rally can continue. Bell Potter retained its hold rating but lifted its price target from $120 to $150, suggesting CSL shares are now fully valued.

The broker said:

Based on the new underlying NPAT metric, CSL trades on a PE multiple of ~19x FY26 and ~18x FY27 earnings, with flat revenue growth and low-to-mid single digit earnings growth expected for FY27. While the result today suggests the worst (by way of earnings declines) is in the rear-view for CSL, we find it difficult to justify a greater premium than is now being attributed relative to global biopharma peers.

So, while CSL’s recovery looks encouraging, the shares have already priced in plenty of optimism. The next challenge is proving that earnings growth can accelerate enough to justify the rally.

The post CSL shares are flying higher. Is it too late to buy? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: BHP, CSL, and HUB24 shares
• How much are CSL shares worth? 4 brokers have their say
• 3 ASX 200 shares I’d buy for the next decade
• Here are the top 10 ASX 200 shares today
• CSL shares: 1 number that investors shouldn’t ignore

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.