Author: openjargon

Whitehaven Coal Ltd (ASX: WHC) shares are lower on Thursday after the company released its half-year FY26 results and confirmed its latest dividend.

At the time of writing, the Whitehaven share price is down 5.57% to $7.97. By comparison, the S&P/ASX 200 Index (ASX: XJO) is currently 1.1% higher.

Although profits fell on weaker coal prices, income investors will focus on Whitehaven’s latest dividend and buyback announcement.

Here’s what you need to know.

Whitehaven’s dividend at a glance

Whitehaven has declared a fully franked interim dividend of 4 cents per share.

Key dates for investors are:

• Ex-dividend date: 26 February 2026

• Record date: 27 February 2026

• Payment date: 13 March 2026

The dividend represents a cash outlay of around $32 million.

In addition, Whitehaven intends to allocate up to $32 million to an on-market share buyback. This takes the potential total capital returns for the half to about $64 million.

Why were profits weaker?

The softer result was mainly due to lower coal prices, which weighed on earnings. Benchmark thermal and metallurgical coal prices have eased significantly from the highs of the past 2 years.

For the half, Whitehaven reported:

• Revenue of $2.5 billion

• Underlying EBITDA of $446 million, down from $960 million a year ago

• Average coal price of $189 per tonne, down 19%

Production volumes were broadly steady. However, lower realised prices squeezed margins and reduced profit compared to last year.

Whitehaven also reported an underlying net loss after tax of $19 million. After including certain one-off items, statutory net profit came in at $69 million.

The balance sheet remains strong

Even with lower prices, Whitehaven’s financial position still looks healthy.

At 31 December 2025, the company had:

• $1.09 billion in cash

• $1.5 billion in total available liquidity

• Net debt of $710 million

• Gearing of 11%

It also generated $387 million in operating cash flow during the half.

Whitehaven has a solid cash buffer and manageable debt. That puts it in a position to keep returning money to shareholders, even if coal prices remain lower for a period.

What investors should take away?

Whitehaven aims to return between 40% and 60% of underlying profit to shareholders across the cycle. In the first half, capital returns were above that target range.

The share price fall today suggests investors may have expected stronger earnings or a larger dividend.

Still, the company has delivered a fully franked dividend and signalled further support through a buyback. Future payouts will depend heavily on coal prices.

The post Whitehaven shares tumble 5% after results. Here’s what investors need to know about its dividend appeared first on The Motley Fool Australia.

More reading

• Whitehaven Coal posts H1 FY26 profit, declares 4c dividend as guidance maintained
• Mining Mammoths: Are Whitehaven Coal, Rio Tinto or BHP shares a buy ahead of earnings results?
• Is there any more upside for Whitehaven Coal shares according to Ord Minnett?
• Here are the top 10 ASX 200 shares today
• Why Imricor, Ioneer, Star, and Whitehaven Coal shares are falling today

Motley Fool contributor Aaron Teboneras 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.

Shares in Lovisa Holdings Ltd (ASX: LOV) are the second-worst performer on the S&P/ASX 200 Index (ASX: XJO) on Thursday after a profit result that missed analysts’ expectations by a wide margin.

The question is, are the shares still worth buying, or is the bad news only going to get worse?

In terms of the longer-term share price outlook, it’s fair to say analysts are split.

Mixed profit result

But first, let’s look at the results.

Lovisa, in a statement to the ASX on Thursday morning, said revenue was up 23.3% to $500.7 million, with comparable store sales up 2.2%.

The company’s underlying net profit came in at $69.6 million, up 21.5%, while the net profit including one-offs was $58.4 million.

The company also boosted its interim dividend to 53 cents, 50% franked, up from 50 cents.

Global Chief Executive Officer John Cheston said regarding the result:

Lovisa has once again been able to deliver strong growth in the underlying global Lovisa business, with the highlight another exceptional gross margin performance and the continued momentum in the store rollout through the period. I would like to share my appreciation to the global team for their hard work in delivering these outstanding results.

Tarnished result

While the company’s numbers look good on the face of it, it gave little prominence to the loss made by its Jewells division, which posted an EBIT loss of $10.8 million for the half, with this detail published only as a footnote to the profit report.

The company said Jewells was in the start-up phase, and hence the underlying results did not include its contributions.

Lovisa said its balance sheet was strong and its cash flow was good.

The company went on to say:

Lovisa generated cash from operations before interest and tax of $183.8m and is in a strong position to deliver future store growth. The strong cash flow and balance sheet position has enabled the Board to announce an interim dividend of 53.0 cents, 50% franked, representing 100% distribution of first half reported earnings. The Board will continue to assess dividend levels each half year and determine the appropriate level of dividend based on profitability, cash flow and future growth capex requirements of the company and the structure of the balance sheet.

Lovisa opened 85 new stores in the half, bringing the total number to 1095 in more than 50 markets.

Commenting on trading so far this calendar year, the company said comparable store sales were up 1.6%.

Analysts’ views mixed

We canvassed the views of three brokers, and they have widely differing price targets on Lovisa shares.

What they did agree on was that the first half result was a wide miss to consensus estimates, with Jarden saying net profit was 14% below consensus, including the Jewells losses.

Jarden has maintained an overweight rating on the shares and a $40.90 price target compared with $27.64 on Thursday, down 10.9%.

UBS has a price target of $33 on the shares, while RBC Capital Markets has an underperform rating on the stock and a price target of $26.

The RBC team said removing the Jewells results from underlying results might be viewed cynically by investors, given its financials were included in previous results.  

The post Lovisa shares are getting hammered on a profit miss, but is the stock still a buy? appeared first on The Motley Fool Australia.

More reading

• Why Goodman, Lovisa, Medibank, and Zip shares are falling today
• Lovisa reveals higher revenue and interim dividend in FY26 half-year
• Here are the top 10 ASX 200 shares today
• 5 top ASX 200 shares I would buy with $5,000
• 3 stellar ASX growth shares that could rise 25% to 50%

Motley Fool contributor Cameron England 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 Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Goodman Group (ASX: GMG) shares are under a lot of pressure on Thursday.

In afternoon trade, the industrial property giant’s shares are down 7% to $28.88.

Why are Goodman shares sinking today?

Investors have been selling the company’s shares today following the release of its half-year results.

For the six months ended 31 December, Goodman reported a 1.5% decline in operating profit to $1.2 billion and an 8.3% decline in operating earnings per share (OEPS) to 58.5 cents.

What else did it report?

A key theme of the result was accelerating data centre activity.

Work in progress (WIP) rose to $14.4 billion across 51 projects, with data centres now accounting for 73% of total development WIP. Goodman’s global power bank increased to 6.0 GW across 16 major cities, with around 0.5 GW of power expected to be in development by June 2026.

Management advised that it expects WIP to increase to approximately $18 billion by the end of FY 2026, reflecting growing customer demand for digital infrastructure.

However, management noted that development earnings are expected to be skewed toward the second half of FY 2026. That timing could be weighing on sentiment and Goodman shares today.

Why the market reaction?

While the result was operationally solid, a few factors may be behind the decline.

Firstly, Goodman has a habit of upgrading its guidance as the financial year progresses. It is possible that the market was anticipating an upgrade today.

However, there was no upgrade to its FY 2026 OEPS guidance. Management continues to expect OEPS growth of 9%.

Furthermore, with its OEPS down 8.3% in the first half, the market may not even be confident that Goodman will be able to achieve its current guidance, let alone upgrade it.

Nevertheless, the company’s CEO, Greg Goodman, remains confident. He said:

Demand for digital infrastructure in our markets is expected to materially exceed supply over the foreseeable future. Goodman has a significant opportunity to develop into this strong demand, given our metropolitan sites, significant power bank, strong capital position and expertise in complex infrastructure. The scale and locations of our powered land bank is rare. Construction-ready powered sites take many years to acquire, plan, secure power, undertake infrastructure works, and ultimately deliver.

Demand for logistics is increasing, with commencements expected to accelerate over the next 12 months. Together these are expected to drive our growing development activity. The Group is targeting FY26 operating EPS growth of 9.0%.

The post Why are Goodman shares sinking 7% today? appeared first on The Motley Fool Australia.

More reading

• Why Goodman, Lovisa, Medibank, and Zip shares are falling today
• Goodman Group posts $1.2b profit and expands data centre pipeline
• What happens if you invest $10,000 in ASX shares and leave it alone for 20 years?
• 3 ASX shares I’d buy and hold through market volatility
• 3 blue-chip ASX 200 shares I would buy and hold

Motley Fool contributor James Mickleboro has positions in Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Buying ASX shares and concerned about the impact of potentially further increases in interest rates?

You’re not alone.

Though it’s worth noting that the All Ordinaries Index (ASX: XAO) has gained 2.9% since 2 February, the day before the Reserve Bank of Australia increased the official cash rate.

As you’re likely aware, on 3 February, the RBA pulled the trigger and lifted the benchmark interest rate by 0.25% to 3.85%.

That marked the first tightening since 8 November 2023, when the central bank boosted the cash rate to 4.35% to tamp down hot-running inflation.

But, after delivering three rate cuts in 2025, the RBA reversed course at its maiden meeting in 2026 amid resurgent inflation.

Commenting on its decision on the day, the RBA noted:

The board has been closely monitoring the economy and judges that some of the increase in inflation reflects greater capacity pressures. As a result, the board considers that inflation is likely to remain above target for some time.

Which brings us back to our headline question.

Should investors buying ASX shares do so with expectations of more rate hikes ahead?

What should ASX investors expect from interest rates in 2026?

Nomura’s Andrew Ticehurst said the three rate cuts in 2025 helped to boost the recent strong jobs figures and stoked the uptick in inflation.

Ticehurst believes ASX investors should expect one more interest rate hike from the RBA in 2026 before the central bank holds steady (courtesy of The Australian Financial Review).

According to Ticehurst:

Monetary policy is now tighter, fiscal policy is likely to be tightened a little bit, and the Australian dollar has risen as well. They’re all moving in a way which is going to cause growth momentum to slow this year.

The RBA is talking hawkishly now … we’ve seen them change tack quite quickly over the past six months, but if the data does soften up a little bit over the next three or four months, you’ll see their language change again.

Jarden’s Micaela Fuchila, on the other hand, believes that ASX investors have seen the last RBA interest rate boost of the current cycle.

Fuchila said the jump in the Aussie dollar and increasing bond yields should help to keep inflation in the 2.7% to 2.9% range, within the RBA’s 2% to 3% target band.

As for this month’s rate hike, Fuchila noted:

There were fundamental changes around the consumer in particular. We had things that we hadn’t seen in a long time, a lot of savings in consumers’ balance sheets. 2025 was a year when we had a Goldilocks scenario for the consumer for the first time.

The post Buying ASX shares? Here’s what these top analysts expect from interest rates in 2026 appeared first on The Motley Fool Australia.

More reading

• Lovisa shares are getting hammered on a profit miss, but is the stock still a buy?
• Why are Goodman shares sinking 7% today?
• The analysts are in agreement, this tech company’s shares are a buy
• ASX 200 lifts to record high amid strong earnings and new jobs data
• Why Goodman, Lovisa, Medibank, and Zip shares are falling today

Motley Fool contributor Bernd Struben 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.

Shares in Superloop Ltd (ASX: SLC) piled on the gains this week after the company announced a solid profit result as well as a $165 million acquisition.

But despite the shares piling on more than 10% gains after the company’s announcements, the three analysts we’ve canvassed all agree there’s more upside to this stock.

Firstly, let’s look at what the company announced this week.

Solid earnings jump

On the numbers, Superloop announced that its underlying EBITDA jumped 46% to $55.8 million, while net profit was $5.1 million, compared with a loss of $7.8 million for the same period last year.

The company added 74,000 new customers in the half, a 21% gain, bringing total customers to 805,000.

Superloop also upgraded its underlying EBITDA outlook for the full year to $112 to $120 million, up from $109 to $117 million.

Managing Director Paul Tyler said regarding the results:

Superloop has delivered fantastic results for the first of half of FY26, including record organic Consumer customer growth, an increase in revenue of 23%, and an increase of 46% in underlying EBITDA to $55.8 million, leading to net profit after tax of $5.1 million for the half. Both the Consumer segment and the Wholesale segment achieved strong revenue growth, 29% and 28% respectively. Consumer added a record 49,000 customers during the half, and Wholesale experienced accelerated growth in the last two months, setting the business up for a strong second half.   

New acquisition

The other news the company announced was the purchase of last mile internet provider Lightning Broadband, with that deal bringing with it a fibre to the premises network of 24,000 built lots nationally and a further 30,000 contracted lots.

Superloop said it expected synergies of $5 million to be achieved within three years, and the buyout was priced at 15 times Lightning’s estimated 2027 earnings.

Mr Tyler said the deal was a crucial step in building out Superloop’s “smart communities” asset base.

He added:

The combination of Lightning Broadband with Superloop’s existing Smart Communities portfolio, including the acquisition of Frontier Networks during the first half, creates a serious challenger to incumbents. With a combined built and contracted book of approximately 170,000 lots, we have clear visibility of long-term sustainable growth.” “Lightning Broadband’s strength in multi-dwelling units complements our expertise in broadacre, build-to-rent and Purpose-Built Student Accommodation. Our existing fibre network, including 2,500km of metropolitan footprint, enables direct connection to Lightning Broadband buildings, driving cost synergies and increasing network resilience.

Shares looking cheap

So what do the analysts think of all this?

We looked at research notes published by Macquarie, Morgan Stanley, and UBS, and they’re all in agreement.

Both Macquarie and UBS have a 12-month price target of $3.50 on Superloop shares, while Morgan Stanley has a price target of $3.60.

This compares with just $2.85 currently.

Morgan Stanley said they were attracted to the company “as the low-cost operator, especially in selling a commoditised but essential service like broadband”.

They added:

Given the high incremental margins outlined above, we feel Superloop is well positioned to respond to any price competition.

UBS said the first half result was “pleasing”, beating consensus estimates across the board.

Meanwhile, Macquarie said the company “materially outperformed market expectations” in its consumer and wholesale businesses.

The post The analysts are in agreement, this tech company’s shares are a buy appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Superloop shares rocket on major acquisition and strong profits
• Superloop flags $4 million margin risk from AGL telecom business exit
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Cameron England 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) set a new record high at 9,118.3 points at lunchtime on Thursday.

Today’s intraday peak beat the last record set on 21 October last year.

The new high follows robust results from some of Australia’s largest companies, as earnings season continues today.

Strongly rising oil prices overnight have also lifted the ASX 200 today on concerns that US military action in Iran may be imminent.

At the time of writing, the ASX 200 is 9,102.5 points, up 1.06%.

Let’s review some of today’s strongest results.

Shares driving the ASX 200 higher today

ASX 200 communications is the top-performing market sector after Telstra Group Ltd (ASX: TLS) shares hit a 9-year high.

Telstra shares rose 5.6% to $5.24 after the telco reported a 10% lift in its underlying net profit after tax (NPAT) to $1.2 billion for 1H FY26.

ASX 200 industrial sector heavyweight Brambles Ltd (ASX: BXB) saw its shares lift 6.4% to an intraday high of $25 per share.

Brambles reported a 7% increase in its underlying and operating profit (constant currency) to US$792 million for 1H FY26.

ASX 200 healthcare large-cap Sonic Healthcare Ltd (ASX: SHL) ripped 14% to an intraday peak of $24.14 per share. 

The pathology and radiology services provider reported an 11% increase in NPAT to $262 million for 1H FY26.

ASX 200 financial sector mid-cap Hub24 Ltd (ASX: HUB) skyrocketed 21% to an intraday high of $104.21 per share.

The wealth management platform provider revealed an 80% lift in statutory NPAT and increased its interim dividend by 50%.

Hub24 shares are the fastest risers on the ASX 200 today.

Energy is the second strongest sector on Thursday, primarily due to higher oil prices.

Analysts at Trading Economics said:

Reports indicated that any US military action would likely unfold as a weeks-long campaign, with Israel’s government advocating an outcome aimed at regime change in the Islamic Republic. 

Unemployment remains at 4.1%

The ASX 200 hit a new record despite stronger-than-expected jobs data released today.

This morning, the Australian Bureau of Statistics revealed that unemployment stayed steady in January at 4.1%.

The ABS said the number of workers rose by 18,000. This was comprised of 50,000 new full-time jobs and 33,000 fewer part-time jobs.

According to reporting in the Australian Financial Review (AFR), the consensus market expectation was 4.2% and 20,000 new jobs.

Generally speaking, strong jobs data adds to the case for further interest rate hikes to combat resurgent inflation.

The Reserve Bank of Australia lifted the cash rate for the first time in more than two years this month.

The post ASX 200 lifts to record high amid strong earnings and new jobs data appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Bronwyn Allen 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 Hub24. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Hub24 and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having another strong session on Thursday. In afternoon trade, the benchmark is up 1.1% to 9,107.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Goodman Group (ASX: GMG)

The Goodman share price is down almost 7% to $28.96. Investors have been selling this industrial property giant’s shares following the release of its half-year results. Goodman reported an operating profit of $1.2 billion thanks to a combination of new developments, 95.9% portfolio occupancy, and like-for-like net property income growth of 4.2%. Looking ahead, management reiterated a target of 9% growth in FY 2026 operating earnings per share. However, it notes that this remains subject to stable market conditions. It is possible that the market was expecting an upgrade to its guidance.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is down 11% to $27.60. This is despite the fashion jewellery retailer releasing its half-year results and reporting a 23.3% increase in revenue to $500.7 million and a 21.5% jump in underlying net profit to $69.6 million. However, Lovisa’s statutory net profit after tax, which includes its Jewells investment, was up just 2.6% to $58.4 million. The Jewells business recorded a loss of $11.2 million for the period.

Medibank Private Ltd (ASX: MPL)

The Medibank share price is down 6.5% to $4.48. This morning, the private health insurer released its half-year results and reported a 0.3% decline in underlying net profit after tax to $297.8 million. The main drag on its performance was its net investment income, which fell 17.1% to $94.9 million. Despite this, the Medibank board elected to increase its interim dividend to 8.3 cents per share. Medibank’s CEO, David Koczkar, said: “This is another good result for the Medibank Group, reflecting strong customer engagement and positive progress in driving the health transition forward. We have delivered on our growth commitments, with improved momentum in our health insurance business and strong growth in Medibank Health.”

Zip Co Ltd (ASX: ZIP)

The Zip share price is down 38% to $1.74. Investors have been selling the buy now pay later provider’s shares following the release of its half-year results. Although Zip delivered a record result, investors appear concerned by a number of metrics. Zip’s revenue margin edged lower to 7.9%, net bad debts increased slightly to 1.73% of TTV, and its second-half cash EBTDA is expected to be broadly in line with the first half. This suggests that profit growth may moderate from here rather than accelerate further.

The post Why Goodman, Lovisa, Medibank, and Zip shares are falling today appeared first on The Motley Fool Australia.

More reading

• Medibank just raised its dividend. Here’s what you need to know
• Zip shares crash 33% on results day
• Goodman Group posts $1.2b profit and expands data centre pipeline
• Zip reports record 1H FY26 cash earnings and upgrades guidance
• Lovisa reveals higher revenue and interim dividend in FY26 half-year

Motley Fool contributor James Mickleboro has positions in Goodman Group and Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Lovisa. The Motley Fool Australia has recommended Goodman Group and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owners of Wesfarmers Ltd (ASX: WES) shares can get excited because the passive income payment is noticeably up compared to last year. The Wesfarmers dividend increase is funded by a good rise in earnings in the FY26 first-half result.

The company reported that revenue grew 3.1% to $24.2 billion, and operating profit (EBIT) climbed 8.4% to $2.5 billion. The net profit after tax (NPAT) and earnings per share (EPS) both climbed by 9.3%, to $1.6 billion and $1.41, respectively.

Let’s look at what’s happening with the payout.

Wesfarmers dividend

The Kmart and Bunnings owner decided to declare an increased interim dividend per share of $1.02 per share, up 7.4%. The payout is fully franked.

This payment represents a dividend payout ratio of 72% of the EPS, which balances rewarding shareholders with retaining some profit to reinvest in its operations.

The board of directors decided on the level of the dividend based on the available franking credits, current earnings, cash flows, future cash flow requirements and targeted credit (balance sheet) metrics.

Wesfarmers also said it’s maintaining a focus on maximising the value of franking credits for shareholders.

When will the payout hit bank accounts?

Owners of Wesfarmers shares will receive the interim dividend on 31 March 2026, which is not that far away.

If investors want to receive this payment, they need to own shares by the ex-dividend date of 24 February 2026. That means investors need to buy shares by the end of the previous trading day, which is 23 February 2026 (next Monday).

Investors can also decide to take part in the dividend re-investment plan (DRP) if they want to receive the Wesfarmers dividend as new shares rather than cash. Shareholders who want to take part in the DRP must elect to do so by 8pm on 26 February 2026.

The DRP price for Wesfarmers shares will be calculated based on the 15 trading days between 2 March 2026 to 20 March 2026. There won’t be a discount for any shares issued.

Outlook for further Wesfarmers dividend growth

The business said that sales growth has started well in the second half of FY26, with Bunnings and Officeworks delivering sales growth that was broadly in line with the first half of FY26, while Kmart Group sales growth was stronger compared to the first half.

I think it’s also helpful that the lithium operations are producing resources now, it’s not just a burden on the company’s cash flows in the setup phase.

Overall, there are promising signs for further dividend growth in FY26.

The post Everything you need to know about the latest Wesfarmers dividend appeared first on The Motley Fool Australia.

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• Are Wesfarmers shares a good buy for passive income?
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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 positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in SkyCity Entertainment Group Ltd (ASX: SKC) are sliding on Thursday after the casino operator released its interim results.

At the time of writing, the SkyCity share price is down 5.33% to 71 cents. The stock is now hovering near the lower end of its 52-week range, reflecting a tough year for shareholders.

Here’s what the company reported for the 6 months ended 31 December 2025.

Revenue dips and earnings fall

SkyCity delivered group revenue of $411.7 million, down 2.4% on the prior corresponding period.

Underlying EBITDA came in at $85.5 million, a decline of 28.4%, while underlying net profit after tax (NPAT) fell 67.5% to $14.4 million.

On a statutory basis, reported net profit after tax was $12.1 million, up from $6.1 million a year ago, largely due to one-off items in the prior period.

Management said the result reflects a “transitional” half, with regulatory changes, cost pressures, and investment weighing on margins.

No interim dividend was declared.

Regulatory changes and higher costs dent earnings

A major change during the half was the rollout of mandatory carded play across SkyCity’s New Zealand casinos from July 2025.

While management says this supports long-term sustainability and provides better customer data, it had a short-term impact on gaming revenue and EBITDA per visitation.

The company also flagged higher compliance costs, including continued investment in anti-money laundering systems and host responsibility frameworks.

In Adelaide, earnings were affected by compliance-related costs, gaming tax, and legal matters. Management confirmed a carded play system is expected to be implemented there from December 2026.

Convention centre opens as debt levels stay in focus

There was one major milestone during the period. The New Zealand International Convention Centre officially opened in February, with strong forward bookings for FY26 and FY27.

SkyCity expects the convention centre to support improved performance in the second-half, alongside cost-out initiatives and the absence of some one-off costs.

On the balance sheet, total net debt sits at $594 million, with net debt to EBITDA of 2.83x. The group said covenant ratios remain within banking limits.

Average debt borrowing costs fell to 5.4%, and liquidity headroom remains solid, with more than $340 million in funding headroom.

What’s the FY26 outlook?

SkyCity reaffirmed its FY26 guidance, originally provided in August and reconfirmed at the annual general meeting (AGM).

The company expects:

• FY26 underlying EBITDA of $190 million to $210 million

• Reported EBITDA of $170 million to $190 million

• No dividends to be paid in FY26

Management said FY26 will continue to be a transition year as it finalises key projects and navigates short-term headwinds. The goal is to reset the business and lay the groundwork for improved earnings beyond FY26.

The company is also preparing for the potential launch of online casino gaming in New Zealand, which could go live from December 2026, pending regulatory approval.

Foolish takeaway

SkyCity’s half-year result was broadly in line with expectations, but earnings still remain under pressure.

With no dividend and debt still sitting high, it’s not hard to see why the share price has slipped.

The post ASX casino stock sinks 5% after profit plunges 67% appeared first on The Motley Fool Australia.

More reading

• Why Goodman, Lovisa, Medibank, and Zip shares are falling today
• Everything you need to know about the latest Wesfarmers dividend
• Why Hub24, Sonic, Telstra, and Universal Store shares are racing higher today
• How mainstream adoption is now hammering the Bitcoin price
• Articore shares fly 11% higher following half-year result

Motley Fool contributor Aaron Teboneras 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1.05% to 9,102.8 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are racing higher:

Hub24 Ltd (ASX: HUB)

The Hub24 share price is up 13% to $97.73. This follows the release of the investment platform provider’s half-year results. Hub24 reported a 26% increase in revenue to $245.9 million and a 60% jump in underlying net profit after tax to $68.3 million. The company’s managing director and CEO, Andrew Alcock, commented: “These results demonstrate our continued momentum, with record net inflows and strong progress in delivering our strategy to create value for customers and shareholders. Our recognition again as Australia’s best platform reflects our commitment to delivering innovative solutions that enable advisers to support the needs of their clients throughout their life stages and empower better financial futures for more Australians, which is now more important than ever.”

Sonic Healthcare Ltd (ASX: SHL)

The Sonic Healthcare share price is up 13% to $24.03. Investors have been buying the healthcare company’s shares following the release of its half-year results. Sonic posted a 17% increase in revenue to $5.45 billion and an 11% lift in net profit to $262 million. This allowed the company’s board to declare an interim dividend of 45 cents per share, which was up 2.3% on last year. Sonic Healthcare’s CEO, Dr Jim Newcombe, said: “Sonic Healthcare’s first half result demonstrated the strength and global diversity of the group’s operations. We consistently deliver high-value medicine to our global communities and are a trusted partner for doctors, patients and healthcare systems.”

Telstra Group Ltd (ASX: TLS)

The Telstra share price is up 5% to $5.21. This has been driven by the release of a solid half-year result from the telco giant this morning. For the six months ended 31 December, Telstra reported a 14% increase in cash EBIT. This underpinned an increase in its interim dividend to 10.5 cents per share (from 9.5 cents per share). Telstra’s CEO, Vicki Brady, said: “We delivered ongoing growth in earnings, reflecting momentum across our business, strong cost control and disciplined capital management.”

Universal Store Holdings Ltd (ASX: UNI)

The Universal Store share price is up 6.5% to $8.95. Investors have been buying the youth fashion retailer’s shares after it impressed with its half-year results. Universal Store posted a 14.2% increase in sales over the prior corresponding period to $209.6 million. Growing even stronger was the company’s underlying net profit, which was up 22% to $28.3 million.

The post Why Hub24, Sonic, Telstra, and Universal Store shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• Everything you need to know about the latest Telstra dividend
• Universal Store trading higher as profits beat expectations
• Why Sonic Healthcare shares are rocketing 12% on blockbuster half-year results
• HUB24 delivers 1HFY26 earnings and raises FY27 growth target
• Telstra lifts earnings and dividend, expands buy-back for 1H26

Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Hub24, Sonic Healthcare, and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.