The Reece Ltd (ASX: REH) share price is in focus after full-year FY26 sales revenue rose 4.5% to $9.38 billion, but net profit slipped 2.8% to $308 million.

What did Reece Ltd report?

• Sales revenue up 4.5% to $9,378 million
• EBITDA flat at $901 million
• EBIT down 2.6% to $534 million
• Net profit after tax (NPAT) down 2.8% to $308 million
• Final dividend of 13.40 cents per share, fully franked
• Return on capital up five basis points to 11.9%

What else do investors need to know?

Reece’s Australian and New Zealand business delivered renewed momentum, with sales up 8.3% to $4.2 billion thanks to recovering volumes and investment in team capability. This was partly offset by softer conditions in the US, where ongoing weakness in residential new construction pressured growth despite a network expansion to 25 new branches.

Investors should note net debt increased to $744 million, mainly due to continued network growth and share buyback funding. However, the company’s net leverage ratio remains conservative at 1.0x. Group capital expenditure was $174 million, supporting organic growth and digital transformation.

What did Reece Ltd management say?

Peter Wilson, Chairman & CEO, said:

FY26 was a year of improved momentum in our ANZ business as volumes recovered, while a weak residential housing market saw softer growth in the US. Throughout the year we focused on delivering our customer promise, progressing our innovation agenda and building out digital capabilities – all of which help us continue building a stronger business.

What’s next for Reece Ltd?

In FY27, Reece expects continued momentum in Australia and New Zealand, supported by a strong project pipeline. In the US, the outlook is more subdued as residential construction remains a tough market, while the non-residential sector has been more stable.

Interest rate sensitivity and housing affordability pressures may create ongoing challenges, but management is optimistic about the long-term market fundamentals and the group’s ability to lead on innovation, digital initiatives, and branch expansion.

Reece share price snapshot

The Reece share price has been among the best performers on the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of around 40%.

View Original Announcement

The post Reece FY26 earnings: Revenue up, profit edges lower appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: SGH, Reece, Genesis Minerals shares

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 major names in the consumer staples and discretionary sectors released full-year results late last week. 

Inghams Group Ltd (ASX: ING), which supplies poultry products, notably to major Australian supermarkets Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL), and quick-service restaurants including McDonald’s and KFC, saw its share price sink 7% on Friday. 

On the positive side, fast/casual franchise Guzman y Gomez Ltd (ASX: GYG) shares soared over 11% following its full-year announcement. 

Full results can be found here: 

• Inghams full-year results
• GYG full-year results

Following these results, the team at Bell Potter released updated guidance on both Inghams and GYG shares. 

Here is what the broker had to say. 

Inghams results in line with guidance 

Bell Potter said the company reported a FY26 underlying EBITDAL broadly in line with expectations and guidance at $186.4 million. 

However, Bell Potter sees pressure from wholesale and grain, with FY27 guidance of $190 to $220 million EBITDAL coming in below its $213.5 million estimate and broadly in line with consensus. 

The outlook assumes 2.5-4% volume growth, 4-5% general cost inflation excluding feed, and a further $40–50m increase in feed costs, highlighting ongoing cost pressures that are expected to constrain earnings growth in FY27.

Looking ahead, the broker sees little upside for Inghams shares over the next 12 months. 

The broker has a gold recommendation and $2.10 price target. 

Inghams shares closed last week trading at $2.06. 

GYG shares fairly priced

Bell Potter saw GYG’s FY26 result as broadly in line with expectations, with comparable sales growth of 5.3% and Australian underlying EBITDA of $85m, up 28.7% YoY and consistent with prior guidance. 

The key positive surprise was a much higher 48cps dividend, including a 14.4cps special dividend, supported by the exit from loss-making US operations, a lower share count following the buyback and a higher earnings base. 

GYG added 35 net stores during the year, in line with Australian guidance. 

For FY27, management expects comparable sales growth to remain in the mid-single digits and EBITDA margins to improve from 6.2% to 6.7-6.9%, driven largely by the full-year contribution from recently opened restaurants. 

Looking ahead, Bell Potter sees GYG shares as fairly priced after Friday’s 11% gain. 

The broker has a hold recommendation and $27.30 price target on GYG shares. 

While we think GYG is a clear leader in the QSR space after displaying strong comp sales growth, margin expansion, and further network growth opportunities, we see near-term cost headwinds and a consumer slow-down as a risk to FY27 guidance and view the current multiple as fairly valued. While we increase our PT ~11%, it is only a modest premium to the share price, so we downgrade to HOLD.

The post Are Inghams and GYG shares a buy, hold or sell following earnings results appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why I’d still buy Guzman Y Gomez shares after its big rise
• Everything you need to know about the Guzman Y Gomez dividend
• Why Guzman Y Gomez, Pro Medicus and James Hardie shares are turning heads on Friday
• Inghams Group FY26 earnings: volume growth, headwinds, and FY27 outlook

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 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.

The Aussie Broadband Ltd (ASX: ABB) share price is in focus after the company delivered a 19.6% jump in underlying EBITDA, reaching $165.3 million, and grew revenue by 9.2% to $1,295.4 million for FY26.

What did Aussie Broadband report?

• Underlying EBITDA of $165.3 million, up 19.6% on last year
• Revenue rose 9.2% to $1,295.4 million
• On-net broadband connections surpassed 1.11 million, up 41%
• Operating cash flow increased 42.5% to $167.2 million
• Fully franked final dividend of 3.6 cents per share, total FY26 dividend 6.0 cents (up 50%)
• Underlying NPAT rose 41.8% to $52.4 million

What else do investors need to know?

Aussie Broadband repositioned its portfolio with several strategic moves, including completing the acquisition of AGL Telco and Nexgen, and finalising the migration of More and Tangerine connections. These deals have expanded the company’s customer base and capabilities, strengthening its platform for future growth.

The company also completed divestments of Buddy Telco and Digital Sense, sharpening its focus on core telecommunications services. Its net leverage ratio fell to 0.9x, providing flexibility for ongoing investment or acquisitions. Aussie Broadband has also launched a share buyback of up to $115 million, highlighting confidence in its financial position.

Growth in mobile services continued, with a 22% boost in mobile connections and the launch of new features like international roaming and eSIM. The outlook remains positive, as the company maintained customer retention despite intense competition and recent price increases.

What did Aussie Broadband management say?

Group CEO Brian Maher said:

FY26 was a defining year for Aussie Broadband. Our premium telco offering continued to attract customers and partners, delivering organic connections growth, strategic customer wins and strong financial performance despite a competitive market backdrop. We grew revenue while improving operating leverage, resulting in EBITDA margin expansion and accelerated earnings growth… The migration of More and Tangerine connections and the acquisitions of AGL Telco and Nexgen have increased our scale, broadened our customer base and enhanced our ability to meet the evolving needs of customers across all segments.

What’s next for Aussie Broadband?

Looking ahead, Aussie Broadband expects to deliver underlying EBITDA between $205 million and $215 million in FY27—growth of 24% to 30%. The company’s focus now moves from acquisitions to unlocking benefits from its enhanced scale and broader customer acquisition channels.

Continued momentum is anticipated, with the migration of AGL Telco services on track to complete in the second quarter of FY27. Capex for FY27 is forecast between $60 million and $65 million, as the company invests to support future organic and inorganic growth.

Aussie Broadband share price snapshot

Over the past 12 months, Aussie Broadband shares have declined 6%, trailing the All Ordinaries Index (ASX: XAO), which is flat over the same period.

View Original Announcement

The post Aussie Broadband FY26 earnings: double-digit growth and new acquisitions appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Aussie Broadband, James Hardie, Macquarie shares

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 positions in and has recommended Aussie Broadband. The Motley Fool Australia has recommended Aussie Broadband. 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.