The Guzman y Gomez Ltd (ASX: GYG) share price is in focus today after the company reported record underlying earnings for FY26 and completed its exit from US operations. Network sales rose 17.9% to $1.38 billion, while underlying EBITDA surged 28.7% to $85.0 million.

What did Guzman y Gomez report?

• Network sales jumped 17.9% year on year to $1,377.8 million
• Underlying EBITDA increased 28.7% to $85.0 million
• Statutory NPAT lifted 31.6% to $40.6 million; underlying NPAT up 29.7% to $53.4 million
• Opened 35 new restaurants during FY26, taking the total to 284 globally as at 30 June 2026
• Declared a fully franked full year dividend of 48.0 cents per share, including a special dividend
• Completed exit from US operations, with statutory group NPAT loss (inc. discontinued ops) of $(26.7) million

What else do investors need to know?

Guzman y Gomez maintained a strong balance sheet, finishing the year with $171 million in cash and no debt. The company deployed $100 million in share buybacks during the year and announced a further $100 million buyback.

Restaurant network expansion remains a key priority, with 117 Australian sites in the pipeline and plans to open 35 new Australian restaurants in FY27. Technology investment was highlighted, including deployment of AI tools to streamline kitchen operations.

GYG welcomed two new non-executive directors, George Wahby and Guy Fowler, whose appointments bring additional experience in scaling businesses. Their nominations are subject to shareholder approval later in 2026.

What did Guzman y Gomez management say?

Guzman Y Gomez’ founder and co-CEO, Steven Marks, said:

This year marks the twentieth anniversary since we opened our first GYG restaurant in Newtown, Sydney. I am incredibly proud of the growth we have delivered in that time, the people who have delivered it and the strength of the operating platform we have built.

Our Australia Segment has reported network sales of $1.4 billion, up 17.9% on last year, demonstrating continued consumer demand for clean, fresh, made-to-order food, loaded with flavour and prepared at speed. This momentum has translated into strong earnings growth, with underlying EBITDA up 28.7%, highlighting the strong operating leverage embedded in our business.

What’s next for Guzman y Gomez?

Looking ahead to FY27, Guzman y Gomez is targeting the opening of 35 new restaurants in Australia and expects underlying EBITDA margin as a percentage of network sales to expand to 6.7–6.9%. Early trading in FY27 is positive, with strong comp sales growth reported.

Over the medium term, GYG aims for continued network expansion, steady comp sales growth, margin improvement from drive-thru penetration, and ongoing investment in digital and operational efficiencies. The company continues to target underlying EBITDA margin of around 10% of network sales.

Guzman y Gomez share price snapshot

The Guzman Y Gomez share price has been among the worst performers on the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of almost 20%.

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The post Guzman y Gomez delivers record FY26 results, launches new buyback 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 MGX Resources Ltd (ASX: MGX) share price is in focus as the company reported a net loss after tax of $30.2 million and completed a major transition from iron ore to gold during FY26.

What did MGX Resources report?

• Sales revenue of $204.0 million, down from $330.5 million the previous year
• Iron ore sales of 2.68 million tonnes, including 1.81 million tonnes of low-grade material
• Profit before tax and impairments was $29.1 million
• Reported net loss after tax of $30.2 million, narrowing from $82.2 million loss in FY25
• Cash and investments of $412.1 million at 30 June 2026
• Koolan Island divestment agreement for at least $20.2 million plus revenue share and rehabilitation cost assumption

What else do investors need to know?

The year was a turning point for MGX Resources as it repositioned its business from iron ore towards precious metals. The company completed the Koolan Island low-grade iron ore sales program, generating positive cash flow and fully funding site rehabilitation and wind-down activities.

MGX executed a binding agreement to divest Koolan Island to Crestlink, helping preserve its strong, debt-free balance sheet. The company also acquired a 50% interest in the Central Tanami Project Joint Venture, fast-tracking its entry into Australian gold production.

What did MGX Resources management say?

MGX Resources CEO Peter Kerr said:

MGX completed a successful transitional year with the low-grade sales program at Koolan Island surpassing expectations to generate positive cashflow to fully fund site rehabilitation and ramp-down activities

Together with the recently announced agreement to divest Koolan Island to logistics proponent Crestlink, this helped MGX preserve its strong debt-free balance sheet which will enable the business to focus on accelerating the high-grade Central Tanami Gold Project towards a development decision.

MGX is well positioned to utilise its hard-earned iron ore cash reserves to realise substantial shareholder value as it seeks to create a new high-quality Australian gold production business.

What’s next for MGX Resources?

Looking ahead, MGX will focus on completing the Koolan Island divestment and fully transitioning operations to gold. The company is accelerating work at the Central Tanami Gold Project, including resource definition drilling, infrastructure upgrades, and pushing towards a development decision.

MGX plans to leverage its significant cash reserves and mining expertise to develop the Tanami project and grow its footprint in Australian gold production.

MGX Resources share price snapshot

Over the past 12 months, MGX Resources shares have declined 8%, trailing the All Ordinaries Index (ASX: XJO), which is flat over the same period.

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The post MGX Resources narrows FY26 loss as it moves from iron ore to gold appeared first on The Motley Fool Australia.

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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 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 James Hardie Industries plc (ASX: JHX) share price is in focus today after the company announced the divestiture of its European operations, including the sale of Fermacell to Holcim for €840 million (around $980 million USD).

The deal is expected to speed up debt reduction and support the return of capital to shareholders, with a new $250 million share repurchase program also unveiled.

What did James Hardie report?

• Firm has agreed to sell its European sustainable walling and flooring business Fermacell to Holcim for €840 million in cash.
• Proceeds will be used to repay about $600 million in debt and to fund a $250 million share buyback.
• The transaction is expected to be accretive to the company’s margin profile and return on invested capital (ROIC) post-completion.
• James Hardie also plans to close its European fiber cement operations, sharpening focus on its core growth markets.
• The deal is targeted to close in the first half of calendar 2027, subject to regulatory and employee procedures.

What else do investors need to know?

James Hardie’s strategic shift is part of a broader plan to align its portfolio with long-term growth opportunities and market leadership in core regions. The funds from the Fermacell sale will reduce James Hardie’s net leverage toward a target of below 2.0x by September 2027.

Additionally, the Board’s $250 million share buyback authorisation demonstrates a commitment to delivering shareholder returns. The closure of the European fiber cement business, while significant, also signals a more focused approach to investment and innovation in key growth markets such as North America and Asia-Pacific.

What did James Hardie management say?

James Hardie’s CEO, Aaron Erter, commented:

The strategic divestiture of our European operations and the intended closure of the European fiber cement business will enable us to focus on our highest growth and return opportunities. We believe this divestiture will strengthen our balance sheet, deliver compelling value for our shareholders and position the Fermacell business for long-term success under Holcim’s ownership. We are deeply grateful to our talented team members across Europe, whose expertise and hard work have made meaningful contributions to James Hardie, and we are committed to supporting impacted European fiber cement employees.

What’s next for James Hardie?

James Hardie expects the transaction to be completed in the first half of 2027, pending usual closing conditions. The focus post-sale will be on reducing debt further and potentially more capital management initiatives, including share buybacks.

The divestment and business closure will allow James Hardie to direct resources toward markets and segments with the most potential for sustainable growth and improved returns. Management has indicated a continued appetite for innovation and investment in these core markets.

James Hardie share price snapshot

It has been a strong 12 months for the James Hardie share price. During this time, the company’s shares have outperformed the S&P/ASX 200 index (ASX: XJO) with a gain of almost 50%.

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The post James Hardie sells European business, launches share buyback 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.