The LGI Ltd (ASX: LGI) share price is in focus as the company delivered a 17% lift in net revenue to $39.8 million and a 35% jump in net profit after tax (NPAT) to $8.8 million for FY26.

What did LGI report?

• Net revenue of $39.8 million, up 17% versus prior year
• Statutory and underlying EBITDA of $21.8 million, up 26%
• NPAT of $8.8 million, up 35%
• Biogas flows reached 170.2 million m³, up 33%
• Renewable energy generation totalled 140.8 GWh, up 29%
• Fully-franked total dividend of 2.6 cents per share, up 4%

What else do investors need to know?

LGI expanded its emissions reduction footprint by launching eight new carbon abatement projects during FY26, growing its contracted site portfolio by 9% year on year. The company also completed a $56.3 million capital raising, boosting its high-conviction project pipeline to exceed 80MW in capacity.

LGI renegotiated and expanded its debt facility to $82.5 million, a 66% increase over the previous limit, providing additional balance sheet flexibility. Importantly, its operational platform delivered a realised electricity price around 35% above the market average, highlighting strong risk management and demand for its offering.

What did LGI management say?

Chief Executive Officer Jarryd Doran said:

In FY26 we outperformed all our key operational drivers with year-on-year biogas recovery increasing by 33%, ACCU’s created increasing 18%, and a 29% increase in renewable energy from our fleet of power stations.

In summary, the Company’s strong operational performance was reflected in our financial results whereby we increased Net Revenue by 17%, and our Underlying EBITDA increased approximately 26%, delivering against our previously stated guided range.

Overall, FY26 was an exceptional team result, and testament to our strong business model. In particular, we demonstrated our ability to flex ACCU creation volumes, helping mitigate the electricity market dynamics observed throughout the year.

Looking forward, our efforts during the year in registering and commencing carbon abatement across 8 new sites lays important foundations for continued growth. Together with our completed capital raising in October 2025, we look forward to continuing to deliver against our strategy of expanding our pipeline of generation capacity to beyond 80MW.

What’s next for LGI?

LGI is targeting further growth, with construction underway on its Canberra and Belrose battery projects set to boost total managed capacity to at least 45MW in FY27. Management expects biogas and carbon credits to deliver around 10% compound annual growth for the next three years, and is focused on rolling out flexible, scalable renewable energy projects.

The company is continuing to progress several development approvals and grid connections for high-conviction pipeline projects. With its enhanced capital base and expanded debt facility, LGI aims to execute on its strategy to reach more than 80MW of renewable energy capacity.

LGI share price snapshot

Over the past 12 months, LGI shares have declined 39%, trailing the All Ordinaries Index (ASX: XAO).

View Original Announcement

The post LGI posts FY26 earnings growth and expands renewable energy portfolio appeared first on The Motley Fool Australia.

More reading

• ASX 200 utilities shares gained 7% while the broader market fell heavily last week
• 3 ASX shares to buy as the market gathers pace: experts

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 LGI Limited. 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 Alkane Resources Ltd (ASX: ALK) share price is in focus today, after the company declared its first-ever fully franked final dividend of 2 cents per share for FY26 and announced a $50 million on-market share buy-back.

What did Alkane Resources report?

• Maiden fully franked final dividend of 2.0 cents per share for FY26
• Dividend record date: 8 September 2026; payment date: 1 October 2026
• Board approval of up to $50 million on-market share buy-back over the next 12 months
• Closing FY26 with cash, bullion and listed investments of A$454 million
• Record production, revenue and profit following merger with Mandalay Resources

What else do investors need to know?

Alkane Resources’ maiden dividend reflects a strong financial performance and aims to reward long-term shareholders, marking a new chapter for the gold and antimony producer. The buy-back will be executed on-market at the company’s discretion and is expected to represent less than 3% of total shares on issue, not requiring shareholder approval.

The announcement comes after a transformational year in which Alkane merged with Mandalay Resources, combining three operating mines across Australia and Sweden. The company continues with active near-mine exploration and holds a robust pipeline of potential growth projects, including its Boda-Kaiser Project.

What did Alkane Resources management say?

Alkane Resources’ CEO, Nic Earner, commented:

In conjunction with our maiden 2.0cps fully franked dividend announced today, the Share Buy-Back is a clear signal of confidence in Alkane’s ability to generate future cash flows and return capital to shareholders.

FY26 was a transformational year – we completed the merger of equals with Mandalay Resources, brought together three operating mines across two continents, and delivered record production, revenue and profit in our first year as a combined group, closing the year with cash, bullion and listed investments of A$454 million.

As the business evolves, our capital management strategies evolve in unison. A maiden dividend and a Share Buy-Back together reward our shareholders while preserving the balance sheet strength to continue funding organic growth across the portfolio.

What’s next for Alkane Resources?

Looking ahead, Alkane will focus on disciplined capital allocation, ongoing organic growth and delivering value through its diversified asset base. Management has earmarked reinvestment in the business as its top priority, followed by increased shareholder returns, and maintaining balance sheet strength.

Resource expansion activities at its existing mines and progressing the Boda-Kaiser Project will remain key strategic pillars. Investors can expect updates as these growth initiatives advance.

Alkane Resources share price snapshot

The Alkane Resources share price has significantly outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with an impressive gain of 90%.

View Original Announcement

The post Alkane Resources declares maiden dividend and $50m share buy-back after strong FY26 appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy with gains of up to 75%

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.

Medibank Private Ltd (ASX: MPL) shares could be one of the most underrated options for passive income on the ASX because of its dividend yield, in my view.

Medibank is the largest private health insurer in Australia, through two brands – Medibank and ahm.

For a variety of reasons, I believe Medibank may be one of the most underrated ASX dividend shares within the S&P/ASX 200 Index (ASX: XJO).

Regular dividend growth

I think one of the most important factors when it comes to passive income is consistency.

If I’m investing in something primarily for the passive income, then I want to have a high level of certainty that the dividends will continue flowing in all economic conditions, including when times become leaner.

There’s no guarantee of dividend payments, of course – they are not term deposits or annuities.

But I think some businesses are more likely to deliver regular payouts than others. Firstly, some businesses may already have a long dividend growth record they want to continue. Second, specific ASX shares operate in sectors that provide more predictable, defensive earnings. Healthcare is fairly defensive.

Medibank has increased its dividend every financial year (except for FY20) since its listing in FY15. It has a good track record of regularly increasing the payout.

In FY26, the business decided to hike its annual dividend per share by 6.7% to 19.2 cents. Earnings per share (EPS) jumped 27.5% to 23.2 cents, while underlying EPS grew 2.9% to 23.1 cents.

Good dividend yield

If Medibank continues to increase its payout each year, the dividend yield for long-term shareholders could keep improving.

The company’s 6.7% increase in the dividend was pleasing, considering the dividend yield was already at a pleasing level.

At the time of writing, and based on the current Medibank share price, the business has a FY26 grossed-up dividend yield of 6%, including franking credits. I expect the annual payout will grow in FY27.

Good outlook for growth in FY27

The ASX dividend share has provided outlook commentary suggesting further earnings improvement in the 2027 financial year.

Medibank said it aims to grow its resident policyholder market share in a disciplined way, including improved momentum for the Medibank brand. It also expects the FY27 resident private health insurance gross margin to be broadly consistent with FY27.

Non-resident private health insurance gross profit is expected to deliver solid growth in FY27.

With the compelling Medibank health division, segment profit growth is expected to be approximately 25% in FY27, partly due to a full-year contribution from Better Medical.

The ASX dividend share also expects to pursue further acquisition opportunities, which could help grow and diversify the overall business.

Overall, I think Medibank shares and its dividend yield are a compelling investment that I’d be happy to own for the long term.

The post Why I’d buy Medibank shares for the dividend yield appeared first on The Motley Fool Australia.

More reading

• Medibank FY26 earnings: Profit and dividend rise
• 5 things to watch on the ASX 200 on Thursday
• Forget CBA shares! Buy these ASX dividend shares instead for passive income

Motley Fool contributor Tristan Harrison 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.