The Mineral Resources Ltd (ASX: MIN) share price is in focus today after the company reported its strongest-ever financial result, with record revenue of $6.5 billion and underlying NPAT up 831% to $822 million.

What did Mineral Resources report?

• Revenue: $6.5 billion, up 44% on FY25
• Underlying EBITDA: $2.6 billion, up 183%
• Underlying NPAT: $822 million, up 831% year on year
• Reported NPAT: $1.2 billion, up 236%
• Free cash flow: $849 million, up 141%
• Fully franked final dividend: $0.83 per share, reinstated after nil in FY25

What else do investors need to know?

The record performance was driven by growth in the Mining Services division, the ramp-up of Onslow Iron to nameplate capacity, and improved results in lithium operations—helped by higher prices and volumes in the second half. The company’s net debt fell by $1.1 billion to $4.3 billion, with liquidity doubling to $2.4 billion.

Mineral Resources expects the proposed transaction with POSCO, once completed, to reduce net debt further and provide additional funds for growth initiatives. The company is guiding Mining Services volumes to increase by 9% to 14% in FY27, with growth supported by the Onslow Iron project and ramp-ups at other key assets.

What did Mineral Resources management say?

Chris Ellison, Managing Director, said:

The past 12 months stand among the most significant in MinRes’ history. Record operational and financial results reflect years of strategic investment, positioning the company to enter its third listed decade with a stronger foundation than at any point in our 20-year journey on the ASX.

What’s next for Mineral Resources?

Looking to FY27, Mineral Resources expects growth across every operating division, particularly in Mining Services, which is underpinned by long-term contracts and recurring revenue. The company will focus on delivering new brownfield investments and further ramping up iron ore, lithium, and energy projects.

Completion of the POSCO deal is anticipated to unlock further balance sheet strength and disciplined growth. Governance improvements and leadership succession strategies are now embedded, with the company emphasising a disciplined approach to capital allocation for its next growth phase.

Mineral Resources share price snapshot

The Mineral Resources share price has been on fire over the past 12 months, outperforming the S&P/ASX 200 index (ASX: XJO) with a gain of almost 80%.

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The post Mineral Resources share price on watch as record earnings, dividend highlight FY26 appeared first on The Motley Fool Australia.

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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 RBA interest rate has jumped this year, allowing savers to achieve term deposit interest rates that start with a 5. However, I’d prefer to invest in certain ASX dividend shares for a couple of key reasons.

Firstly, I’d highlight that this is probably (close to) the peak interest rate for this cycle of rate rises. That means this could be the best interest rate that savers can get and term deposit rates in 12 months could be lower if there are RBA rate cuts next year.

Secondly, we can pick ASX dividend shares that already have a dividend yield similar to (or better than) the term deposit rate, as well as payout growth. Term deposits are stuck paying the same rate, though it is a guaranteed cash return.

As time goes on, I’d expect a good ASX dividend share to pay an increasingly better cash return than term deposits.

Let’s look at two ideas based on the above thought process, with dividend yields of more than 5%.

WCM Global Growth Ltd (ASX: WQG)

This business is a listed investment company (LIC). I really like the LIC structure because it allows for a diversified portfolio to generate investment profits, which can pay a steadily growing dividend.

WCM Global Growth owns a portfolio of between 20 to 40 quality global stocks that have expanding economic moats (strengthening competitive advantages) and business cultures that help unlock the improvement of the economic moat.

With its portfolio net return of an average of more than 15% per year since inception in June 2017, the ASX dividend has consistently increased its annual dividend per share every year since 2019.

It recently upgraded its quarterly dividend guidance to 9.85 cents per share over the next 12 months, which translates into a grossed-up dividend yield of 6.6%, including franking credits, at the time of writing.

Future Generation Australia Ltd (ASX: FGX)

Future Generation Australia is another LIC that focuses on ASX shares.

It’s invested in the funds of 16 different leading fund managers, providing significant diversification. Future Generation Australia is indirectly invested in more than 430 underlying shares, delivering strong diversification.

One of the reasons why I like this investment is that it has a much smaller allocation to the large ASX blue-chip shares than the overall ASX share market, so I believe the Future Generation Australia portfolio gives more exposure to ASX growth shares, which could perform more strongly over the long-term.

These fund managers are all working pro bono – for free – to enable Future Generation Australia to donate 1% of its net assets each year to youth-focused charities.

This ASX dividend share started paying shareholders dividends in 2015 and has increased its annual payout every year since then. Its guided FY26 payout of 7.6 cents per share translates into a grossed-up dividend yield of 8%, including franking credits, at the time of writing.

The post Forget term deposits! I’d buy these ASX dividend shares instead appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and Wcm Global Growth. 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.

WiseTech Global Ltd (ASX: WTC) shares were under pressure on Wednesday.

The logistics software company’s shares ended the session 10% lower at $40.89.

Is this a buying opportunity for investors? Let’s see what Bell Potter is saying about the fallen star.

What is the broker saying?

Bell Potter notes that WiseTech delivered a result that was in line with its forecasts but slightly below consensus estimates. It said:

FY26 revenue and EBITDA of US$1,396m and US$558m were in line with our forecasts of US$1,394m and US$561m but slightly below VA consensus of US$1,406m and US$569m. NPAT of US$179m was 11% ahead of our forecast of US$160m and driven by a lower tax rate (19% vs BPe 25%). Cash flow was strong with underlying OCF up 46% and a conversion rate of 100%. The final dividend of US8.8c ff was ahead of our forecast of US8.0c and was driven by the beat in EPS.

Looking ahead, management’s guidance for FY 2027 was better than it expected according to the broker. But once again, it was softer than consensus estimates. It adds:

WiseTech provided FY27 revenue guidance of US$1.48 – 1.54bn which was consistent with our forecast of US$1.53bn but slightly below VA consensus of US$1.55bn. The company shifted to providing EBITDA guidance on an underlying basis and gave a range of US$725 – 780m which was consistent with VA consensus of US$761m. This implied guidance for the underlying EBITDA margin of 49-51%.

In response, Bell Potter has made both upgrades and downgrades to its near-term estimates. The broker explains:

We have downgraded our FY27 and FY28 revenue forecasts by c.2% and now forecast FY27 revenue of US$1,507m which is around the middle of the guidance range. We have, however, upgraded our FY27 underlying EBITDA forecast by 3% but left our FY28 forecast close to unchanged. We now forecast FY27 underlying EBITDA of US$745m which is more towards the lower end of the guidance range. That is, we forecast a margin of 49.4% which is towards the low end of the range.

Should you buy WiseTech shares?

According to the note, Bell Potter has retained its buy rating on WiseTech shares with a trimmed price target of $65.00 (from $71.75).

Based on its current share price, this implies potential upside of almost 60% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

In our view the issue with the result was the guidance and, in particular, the expected 45%/55% H1/H2 split in CargoWise revenue this year which implies mid single digit growth in H1 and strong double digit growth in H2. While we reflect this skew in our forecasts, we adjust for the risk in our valuation by reducing the multiples we apply in the PE ratio and EV/EBITDA and also increasing the WACC we apply in the DCF. The net result is a 9% decrease in our TP to $65.00 and we retain the BUY.

The post Why cheap WiseTech shares could rise almost 60% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.