The IGO Ltd (ASX: IGO) share price is on watch today after the company returned to profitability in FY26, posting a net profit after tax (NPAT) of $145.3 million and announcing a fully franked final dividend of 5 cents per share.

What did IGO Ltd report?

• Total revenue of $462.9 million (down 12% from FY25)
• NPAT of $145.3 million (FY25: $954.6 million loss)
• Underlying EBITDA of $285.9 million (FY25: $43.0 million loss)
• Operating cash flow of $132.4 million (up 209%)
• Final fully franked dividend of 5 cents per share ($38 million total)
• Group cash at $386.5 million and undrawn $300 million corporate debt facility

What else do investors need to know?

IGO’s performance bounced back as profits from its Greenbushes and Nova operations, plus improved returns from the Tianqi Lithium Energy Australia joint venture, drove earnings higher. Cost and capital management also played a big part in the turnaround, with free cash flow jumping 176% to $134 million.

The company completed the sale of the Forrestania nickel operation to Medallion Metals and announced a deal to divest its Nova operation to Global Lithium Resources, further simplifying the business and re-aligning strategic priorities towards lithium and copper. Key leadership changes occurred, with Dr Vanessa Guthrie AO taking over as Chair and several other board appointments and departures.

What did IGO Ltd management say?

IGO’s CEO, Ivan Vella, said:

We are proud of what IGO delivered in FY26 – across safety, operational performance and financial returns. The Group returned to profitability, generated positive underlying free cash flow and ended the year with a strong balance sheet, reflecting the benefits of disciplined execution across the portfolio… Looking ahead, our priorities remain clear: safe and reliable operations at Nova, continued support for Greenbushes and Kwinana, and focused growth through exploration, BioHeap and selective inorganic opportunities where value creation and alignment with our strategy is clear.

What’s next for IGO Ltd?

In FY27, IGO expects to close the Nova divestment and focus on growth opportunities in copper and lithium. Guidance points to steady Greenbushes production, lower costs, and increased lithium hydroxide output at Kwinana, though some operational challenges remain.

The company maintains a strong financial position, with $386.5 million in cash and a significant undrawn debt facility, which should support disciplined growth and investment in its targeted commodity areas.

IGO Ltd share price snapshot

The IGO share price has been a strong performer over the past 12 months, beating the S&P/ASX 200 index (ASX: XJO) with a gain of over 50%.

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The post IGO Ltd swings to $145 million FY26 profit, pays 5c dividend 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 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.