The Arena REIT (ASX: ARF) share price is in focus today after the company posted an 8% lift in net operating profit to $79.1 million and hiked its distribution per security by 5.5% for FY2026.

What did Arena REIT report?

• Net operating profit (distributable income) of $79.1 million, up 8% on FY2025
• Statutory net profit of $132 million, up 62% year over year
• Operating earnings per security (EPS) of 19.60 cents, up 5.7%
• Distributions per security (DPS) of 19.25 cents, up 5.5%
• Total assets grew to $2.0 billion, up 8%
• Net Asset Value (NAV) per security rose to $3.60, up 4%

What else do investors need to know?

Arena finished the year with a strong balance sheet, reporting low gearing of 24.5% and a 100% portfolio occupancy rate. The company’s portfolio of 307 properties posted a valuation uplift of $47.4 million, with a weighted average lease expiry of 17.5 years.

The Edge Early Learning portfolio, comprising 31 properties (14% of Arena’s annual rental income), has hit some turbulence after Edge failed to pay August rent. Arena has issued default notices and taken steps to protect its income and assets, including signing new lease agreements for two newly developed centres. Management has also reaffirmed that its legal rights and security arrangements are in place.

Arena saw active portfolio management during FY2026: eleven early learning centre (ELC) properties were divested for $53.5 million at a premium, while the company completed $87 million in development projects and maintains a pipeline of 29 projects.

What did Arena REIT management say?

Managing Director Justin Bailey commented:

FY2026 delivered strong growth in earnings, distributions and net assets, underpinned by contracted rental growth, development completions and active portfolio management. Throughout the year we continued to improve portfolio quality through disciplined capital allocation, development activity and targeted divestments.

What’s next for Arena REIT?

Arena is guiding for a FY2027 distribution of at least 18.0 cents per security. This conservative outlook factors in the uncertainty around the Edge portfolio and assumes no income from those properties beyond the existing security pool.

Looking ahead, Arena says it will focus on resolving the Edge Early Learning situation, carefully managing its portfolio through the current market environment, and progressing its development pipeline. The company also continues to prioritise a strong balance sheet and disciplined investment decisions.

Arena REIT share price snapshot

The Arena REIT share price has significantly underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of 40%.

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The post Arena REIT FY2026 earnings: profit up 8%, distributions higher 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 TPG Telecom Ltd (ASX: TPG) share price will be in focus today after the telco reported a 1% lift in half-year EBITDA to $821 million and raised its interim dividend to 10 cents per share.

What did TPG Telecom report?

• Service revenue up 0.5% to $2,071 million
• Mobile service revenue up 3.1% driven by 64,000 more mobile subscribers
• EBITDA up 1% to $821 million (up 4.5% pro forma)
• NPAT of $35 million, up from $32 million last year
• Operating free cash flow of $199 million, up 16.4% pro forma
• Interim dividend increased to 10 cents per share, 25% franked

What else do investors need to know?

TPG Telecom highlighted continued growth in its mobile business, propelled by its digital-first brands and network expansion, helping boost average revenue per user to $35.21. Home broadband revenue slipped by 1.9% amid fierce competition, but the business expects further subscriber improvement in the second half of FY26.

The company has realised gains from selling its fibre and enterprise assets to Vocus Group in 2025, allowing for lower borrowing costs and a stronger balance sheet. Its fixed wireless business also returned to growth, supported by new standalone 5G offerings.

What did TPG Telecom management say?

Iñaki Berroeta, CEO and Managing Director, said:

TPG Telecom delivered a strong first-half result, demonstrating the benefits of network sharing and the strength of our multi-brand strategy, along with disciplined delivery, and a continued focus on value for our customers and shareholders. We are executing our strategy with discipline, improving profitability and generating strong cash flows.

The benefits of our simplified operating structure and ongoing network and IT systems enhancements are supporting improving business performance and shareholder returns. With clear strategic foundations in place, we remain focused on delivering sustainable long-term value. TPG Telecom is well-positioned for the years ahead as we deliver ongoing growth in free cash flow, earnings per share and return on capital.

What’s next for TPG Telecom?

The board has reaffirmed its FY26 guidance, targeting EBITDA between $1,665 million and $1,735 million, and capital expenditure of around $750 million. Management expects ongoing improvements in free cash flow as past investments in network and IT start to pay off, along with further momentum from mobile subscriber growth and digital-first strategies.

TPG Telecom says it will keep prioritising sustainable growth and increasing dividends in line with profit and cash flow over time. The company continues with its operational simplification and cost controls to drive long-term shareholder value.

TPG Telecom share price snapshot

The TPG Telecom share price has significantly underperformed the S&P/ASX 200 Index (ASX: XJO) over the past 12 months with a decline of around 33%.

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The post TPG Telecom shares on watch as earnings and dividend edge higher in HY26 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.

Two ASX shares enjoyed a strong rise yesterday following the release of earnings results and study results. 

Cuscal Ltd (ASX: CCL) shares rose almost 8% yesterday, while AVITA Medical Inc (ASX: AVH) rose 4%. 

This prompted fresh buy ratings from the team at Bell Potter, as well as upgraded price targets. 

What did the companies announce?

Cuscal shares rose strongly yesterday following the release of full-year results. The company reported a 49% jump in statutory NPAT to $42.7 million for FY26, boosted by acquisitions of Indue and Paymark.

Underlying NPAT was up 20% to $46.2 million, while underlying net operating income rose 20% to $347.7 million. Aggregate transaction volumes grew 12% over the year and the final dividend of 7 cents takes the full-year dividend to 11.5 cents per share. 

Following yesterday’s rise, Cuscal shares are now up 93% over the last year. 

Meanwhile, investors were gobbling up AVITA Medical shares after the announcement of its study results. 

According to the release, it has produced evidence that its PermeaDerm treatment may replace expensive cadaveric skin grafts with a product that works similarly, costs ~70% less, and is far easier to prepare.

The full releases from both companies can be found here: 

• Cuscal full-year results 
• AVITA clinical study announcement.

Upgraded outlook for Cuscal following earnings results 

Following the full-year results, the team at Bell Potter provided upgraded guidance for Cuscal shares. 

The broker said the underlying FY26 NPAT came in at $46.2 million, ahead of expectations. 

Bell Potter also said the balance sheet remains healthy, and noted the final dividend was increased to 7 cents per share fully franked. 

For FY27, management is guiding to mid-20% volume and underlying NPAT growth. Although acquiring growth is expected to be weaker, Bell Potter sees this as implying organic earnings growth of more than 10%, with volumes having picked up since June.

Based on this guidance, the broker retained its buy recommendation and raised its price target to $6.50 (previously $5.80). 

From yesterday’s closing price, this indicates an upside potential of almost 16%. 

Big upside for AVITA Medical

Bell Potter has also raised its outlook for AVITA Medical shares following its study results. 

Bell Potter is more bullish on the company because its products are showing strong cost and clinical benefits. 

PermeaDerm significantly reduced treatment costs and preparation time while achieving similar healing results to cadaver skin, although it is still a small part of AVH’s revenue.

The bigger story is RECELL (AVITA’s main product), where revenue growth is picking up, reimbursement uncertainty is improving, and cash burn is moderating. 

Bell Potter believes the broader product range could also help it sell more products into existing hospitals.

Based on this guidance, the broker retained its buy recommendation on the company and raised its price target to $3.70 (previously $2.10). 

This indicates a 36% upside from current levels. 

The post Broker puts fresh buy ratings and tips 36% upside for these earnings results winners  appeared first on The Motley Fool Australia.

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• Guess which ASX stock could rise 35%
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Motley Fool contributor Aaron Bell 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 Avita Medical. The Motley Fool Australia has recommended Avita Medical. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.