Author: openjargon

Well, as of last Friday, we’re halfway through what is colloquially known as ‘earnings season‘.

You probably know this, but companies that are listed on the ASX are required to lodge their accounts within two months of the end of their half- and full-year accounting periods.

What you may not know is that companies aren’t obliged to use the tax- or calendar years – they can pick whatever date they like. They just have to lodge their accounts within two months of that date.

In the event, the vast majority of companies use June 30 and December 31. Most run traditional financial years – July 1 to June 30. Some use calendar years: January 1 to December 31. Either way, their half-year or full-year results are due by the end of February.

And given it usually takes them a month or so to put all of the data (and annoyingly self-promotional ‘investor presentations’) together, we don’t tend to see them start publishing until this month.

And so, February (and August) become ‘earnings season’ – when almost all ASX companies give us that biannual look under the proverbial bonnet (no, not ‘hood’, thank you… and get off my lawn!)

And as of Friday, we’re halfway through the month. So, what have we learned?

Firstly, investors really, really hate surprises. Like, really.

There have been quite a few large falls of 20% or more when companies released results that weren’t in accordance with investor expectations.

Sometimes, that’s justified. Other times? Well, short-termism can be the enemy of long-term success. If your investment thesis relies on one six month period being ‘just so’, then you’re playing with fire.

On the other hand, if you are looking at a company’s long-term growth prospects, half a lap around the sun is far less consequential.

We’re definitely in the latter camp at The Motley Fool. Half-year results can absolutely be milestones, so we don’t disregard them, but our focus is clearly on the question: “What does this result say about the 5 and 10 year prospects”.

Sometimes, it says a lot. Good or bad. Sequential profit increases from quality companies are lovely. Unexpected losses can be a warning. But sometimes it’s the opposite! That’s why you have to look at the detail for yourself, rather than using share price movements to try to guess.

The best bit? If other investors overreact to temporary problems, but we think the long-term story is intact, we sometimes get the chance to take advantage of their pessimism and buy at cheap prices!

Second, growth comes from a multitude of places, and knowing which is which is vital when assessing a company’s long term prospects.

Compare Commonwealth Bank of Australia (ASX: CBA) and ANZ Group Holdings Ltd (ASX: ANZ), for example.

CommBank managed to grow profits by 6% by growing its lending and deposit bases, even as margins shrank a little.

ANZ’s year-on-year profit growth was the same, but it achieved that result largely by cutting costs.

Which result is better?

In the short term, money spends the same, no matter its source.

In the longer term, you ‘can’t cut your way to greatness’ as the old saw holds.

On this result alone, Commonwealth Bank shareholders should be happier than ANZ’s, because the former is on a significantly stronger growth path, which may bode well for the future.

That’s not to say ANZ can’t find growth from here. Or that the cost-cutting wasn’t justified. Just that compound returns tend to be better when a business can deliver on something I tend to look for: ‘being more relevant, to more customers, more often’.

Lastly, a perennial one: earnings season really should be called ‘expectations season’.

Because share prices don’t react to the actual results, but rather how those results compare to the market’s ‘expectations’.

Take a couple of energy companies: AGL Ltd (ASX: AGL) and Origin Energy Ltd (ASX: ORG). Both companies’ profits fell, compared to last year. And the share prices… rose.

Now a couple of retailers, Temple & Webster Ltd (ASX: TPW) and Nick Scali Ltd (ASX: NCK). Both grew revenue strongly. Temple & Webster’s profit fell, while Nick Scali’s rose. And both companies’ share prices… crashed.

Why?

In all four cases because the market expected something different to what the companies delivered.

By the way, don’t be sucked into thinking about companies on the basis of their share prices. Sometimes, the movement in the share price tracks the business performance. But less often, in the short term, than you might think.

Too often, you hear ‘Oh, XYZ is a great stock’. What those people mean is ‘the share price has been going up lately’.

Or, ‘ABC is a terrible stock’ when they mean the price has been falling.

It’s true that the investor returns have been good, and bad, respectively, in each case.

But they’re talking about a really abstract issue, here, often without knowing it.

They’re not really talking about the company at all – just its share price…

They’re comparing two arbitrary points in time…

And they’re comparing an average market expectation at those points.

Here’s why. Consider a company whose shares fell from $100 per share to $10. That’s unquestionably bad for those who paid $100 a share to buy it.

It’s had a bad year. But does that make it a ‘bad stock’? Only over that timeframe.

Now let’s say the shares go from $10 back to $100 and then to $200.

Is it now a ‘good stock’? Most would say yes.

But in both cases, all we’re really saying is that the crowd loved, then hated, then loved the company again.

Maybe justifiably, based on the company’s performance.

Or maybe not.

And here’s the thing: it’s all in the past anyway.

The only thing that matters is the future. Who cares if it is considered a ‘good stock’ or a ‘bad stock’ based on past activity (and past investor sentiment).

Investors hate tech companies at the moment. They loved them a year ago.

We’ve seen this movie before. The dot.com boom and crash, anyone? Or less remarked upon, the post-COVID tech boom and subsequent fall.

Banks are having a moment in the sun, after going nowhere for a few years, post-COVID.

Looking backward would have been somewhere between useless and expensive, if you’d used only past history to work out when to buy and sell.

So, as you look at the results of the past two weeks, and prepare for the next fortnight, here’s a quick list to keep in mind:

Ignore:

– ‘Great stocks’ and ‘bad stocks’

– Sentiment-driven share price moves

– Past share price performance

– Promotional company announcements that seek to selectively direct your attention

Focus on:

– The underlying earnings power of a business

– What the result tells you, if anything, about the long-term future

– The candour of management

– Whether today’s price (not last year’s price change) is attractive, based on the above

No, it’s not always easy to ignore the people yelling ‘the sky is falling’, or a soaring share price.

But that’s exactly what we have to do.

Your returns don’t come from ‘what just happened’, but from ‘what happens next’.

Invest accordingly.

Fool on!

The post What have we learned from Earnings Season so far? appeared first on The Motley Fool Australia.

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• Buy, sell or hold? Where to from here for plunging Nick Scali shares?

Motley Fool contributor Scott Phillips 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 Temple & Webster Group. The Motley Fool Australia has recommended Nick Scali and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Businesses in the utilities space could be appealing investments because they provide an essential services and can deliver a good payout. One useful contender would be AGL Energy Ltd (ASX: AGL) shares, with a promising dividend forecast out to 2030.

When a business trades on a relatively low price/earnings (P/E) ratio, it means that the dividend yield is naturally higher.

The energy space is in an interesting transitory period right now. Daytime energy is generally cheap because of solar power, while night-time power is much more expensively priced. It’s this dynamic that is already helping AGL’s earnings and could become even more pronounced in the coming years.

Broker UBS wrote the following in a recent note covering the AGL result:

AGL expects volatility to prevail into the LT [long-term] & owning low cost capacity assets with some operating flexibility to capture a greater share of higher price periods (ie. in partic. Loy Yang A & Bayswater Power stations) place AGL in a strong position to grow underlying EBITDA y/y to 2030—provided generation availability is maintained. We forecast underlying EBITDA & NPAT CAGR of 10% & 15% over FY26-30e.

The HY26 result confirmed that AGL’s battery portfolio is performing well ahead of its own expectations & reiterated that batteries can sustain post tax unlevered asset returns at the upper end of its 7-11% target range—despite accelerating growth in both utility scale & residential battery installs.

AGL again increased its planned devpt pipeline pushing leverage higher. We maintain some comfort that AGL ultimately controls the pace of devpt and is seeking opportunities to efficiently manage its balance sheet.

Let’s take a look at what analysts think owners of AGL shares could see in terms of passive income in the coming years.

FY26

The broker UBS is currently projecting that the business could slightly increase its annual payout per share in the 2026 financial year. I think that’s attractive because a higher payout is appealing, it suggests rising underlying earnings and that the board are confident about the future.

AGL is expected by UBS to deliver an annual payout of 49 cents per share in FY26, translating into a grossed-up dividend yield of 6.7%, including franking credits, at the time of writing.

FY27

The payout could rise again for shareholders in the 2027 financial year to a forecast annual dividend of 54 cents per share, which would be a year over year rise of 10%.

FY28

The 2028 financial year could see the dividend take a step backwards, according to UBS, with the projected profit also expected to reduce in that year.

The annual dividend per share for owners of AGL shares is expected to reduce to 47 cents in FY28.

FY29

The 2029 financial year could see the business deliver a much stronger payout of 57 cents per share, which would be pleasing for shareholders to see biggest payout in quite a few years.

FY30

The last year of this series of projections could be the best of all for dividend income.

UBS projects that AGL could pay an annual dividend per share of 84 cents in FY30. That would translate into a grossed-up dividend yield of 11.5%, including franking credits, at the time of writing.

This projected payout would represent growth of 71% between the projected payouts of FY26 and FY30.

UBS currently has a buy rating on AGL shares, with a price target of $11.

The post Here’s the dividend forecast out to 2030 for AGL shares appeared first on The Motley Fool Australia.

More reading

• What have we learned from Earnings Season so far?
• 2 ASX shares highly recommended to buy: Experts
• Utilities outperform as ASX 200 ascends to a 3-month high
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 stocks smashing the benchmark this week

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.

Warren Buffett has a simple message for everyday investors: stop trying to outsmart the market and just own it.

The legendary investor has long argued that most people are better off buying low-cost index funds, like the 3 ASX ETFs discussed below, and holding them for decades. No trading, no forecasting, no fads necessary. Just disciplined, long-term ownership of great businesses.

If you want to apply Buffett’s philosophy on the ASX today, you don’t need 20 ETFs. You don’t need thematic exposure to AI, uranium, or crypto. You just need a simple, diversified foundation.

Here are 3 ASX ETFs that could form a classic Warren Buffett-style portfolio.

Vanguard Australian Shares Index ETF (ASX: VAS)

This is your home-ground anchor. This $23 billion ASX ETF gives you exposure to around 300 of Australia’s largest listed companies and heavyweights like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA).

It also includes other banks, miners, healthcare leaders, and industrial giants that dominate the local market. It’s low cost, highly diversified, and built for long-term compounding.

Yes, the Australian market is concentrated in financials and resources. But it also delivers attractive dividend income and franking credits, which many local investors value. In a Buffett-style portfolio, VAS provides stability, income, and broad exposure to the domestic economy.

iShares Core S&P 500 ETF (ASX: IVV)

Buffett has repeatedly said that a simple S&P 500 Index (SP: .INX) fund is the best bet for most investors. This ASX EFT tracks 500 of the largest US companies. Think global leaders in technology such as Apple Inc (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT), healthcare, consumer brands, and financial services.

This ASX ETF gives you exposure to some of the most profitable and innovative businesses in the world. Over long periods, the US market has delivered powerful earnings growth and strong shareholder returns.

If you believe in the resilience of American enterprise, IVV deserves a major allocation in a Buffett-inspired portfolio.

Vanguard MSCI International Shares Index ETF (ASX: VGS)

This popular ASX ETF invests across developed markets outside Australia, including the US, Europe, and parts of Asia. It holds thousands of international companies, like tech giant Nvidia Corp (NASDAQ: NVDA) and the world’s largest food company, Nestlé S.A. (SWX: NESN). It spreads your risk across regions and industries. While the US often grabs the headlines, global diversification reduces reliance on a single economy and smooths returns over time.

Foolish Takeaway

Three ETFs. Broad diversification. Decades of compounding.

VAS gives you Australian exposure and income. IVV delivers concentrated exposure to the world’s largest and most dynamic economy. VGS broadens your global footprint across developed markets.

You could weight them however suits your risk tolerance, but many growth-focused investors might lean heavier toward IVV and VGS, with a smaller allocation to VAS for home bias and dividends.

The key isn’t picking the perfect percentage. It’s sticking with the strategy.

Buffett’s edge isn’t complexity — it’s discipline. Keep costs low. Reinvest dividends. Ignore market noise. Rebalance occasionally. And most importantly, stay invested when markets wobble.

That’s about as Buffett as it gets on the ASX.

The post 3 ASX ETFs for a classic Warren Buffet-style portfolio appeared first on The Motley Fool Australia.

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• Which is the better buy: the NDQ ETF or the VAS ETF?

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé. The Motley Fool Australia has recommended Apple, BHP Group, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The BHP Group Ltd (ASX: BHP) share price is in focus today after the mining giant reported half-year earnings to December 2025, highlighted by an 11% revenue increase to USD27.9 billion and a 28% lift in profit attributable to BHP shareholders to USD5.64 billion.

What did BHP Group report?

• Revenue rose 11% to USD27,902 million
• Attributable profit increased 28% to USD5,640 million
• Underlying EBITDA up 25% to USD15,462 million; margin improved to 58%
• Underlying attributable profit up 22% to USD6,202 million
• Net operating cash flow increased 13% to USD9,372 million
• Interim dividend lifted 46% to US 73 cents per share, fully franked

What else do investors need to know?

BHP’s copper division now contributes more than half of group EBITDA for the first time, reflecting robust demand and strong commodity prices. Copper production guidance for FY26 has been upgraded to 1.9–2.0 million tonnes, aided by record throughput at Escondida and solid performances in South Australia and Chile.

The company remains committed to investing in organic growth, with capital and exploration expenditure largely steady at over USD5.2 billion for the half. Management highlighted active asset portfolio initiatives, including a major silver streaming agreement at Antamina, which will unlock additional cash and improve financial flexibility. BHP also continues to progress the Jansen potash project in Canada, with first production still targeted for mid-2027.

What did BHP Group management say?

BHP Chief Executive Officer Mike Henry said:

We continue to prosecute our strategy of operational excellence, distinctive social value creation and growth in copper and potash… At a Group level, we again delivered a safe, reliable half, with resilient margins and cash flows that support disciplined investment and strong shareholder returns.

What’s next for BHP Group?

BHP remains optimistic about global economic growth, forecasting around 3% for calendar 2026. The company expects supportive demand for its key commodities, notably copper and iron ore, and is investing in both expansion of Tier 1 assets and greenfield projects like Jansen (potash) and Vicuña (copper, gold, silver).

Capital expenditure guidance is unchanged at around USD11 billion per annum for FY26 and FY27, with an average of USD10 billion per year between FY28 and FY30. BHP plans to continue unlocking portfolio value while maintaining focus on cost discipline and productivity, especially in response to a persistently higher cost environment.

BHP Group share price snapshot

Over the past 12 months, BHP Group shares have risen 23%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post BHP Group posts 28% profit jump and higher dividend in half-year earnings 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 recommended BHP Group. 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.

Australia’s education industry is undergoing a significant shift, shaped by policy change, cost-of-living pressure, and the acceleration of digitisation. These three players are all exposed to one or more of these factors in different ways. So, are they worth a look?   

Janison Education Group Ltd (ASX: JAN)

Janison is a provider of online assessment platforms and digital exams, including the national standardised NAPLAN and competitive ICAS tests. It also delivers the NSW Selective High School and Opportunity Class placement tests on a 5-year state government contract, secured in 2024.

It’s a small-cap stock trading around $0.21. In December, it attracted some investor interest, hitting a 12-month high, on the back of announcing a significant contract with the NZ Ministry of Education. The 5-year deal will see Janison deliver New Zealand’s new SMART online assessment tool to schools, at a value of $21 million.

In FY25, it did not reach profitability. However, it reported some positive indicators, including:

• 9% revenue growth over the prior corresponding period to $46.8 million
• Solid balance sheet with $11 million cash on hand and a 44% increase in operational cash flow
• EBIT improvement from $10.6 million loss to $7 million loss

The assessment market remains ripe for digitisation, and Janison has a track record of securing major contracts in the space. Based on its 2025 results, it’s a bit of a speculative play right now. That said, I think it has real potential for growth in 2026, so it’s going on my watchlist.  

G8 Education Ltd (ASX: GEM)

G8 is Australia’s largest provider of childcare, running over 400 centres nationwide. Amidst challenging conditions for the sector, the company has been rolling out its ‘network optimisation’ strategy, which includes divesting underperforming centres, to improve operational efficiency and financial performance.

While its centres have seen an uptick in quality, with 96% of assessed centres meeting or exceeding the National Quality Standard as at HY25, occupancy rates have continued a downward trend.

In HY25, centre occupancy rates declined 3.7 percentage points on the prior corresponding period, most likely driven by cost-of-living pressures. In addition, expectations of a seasonal occupancy uplift in October 2025 were not realised.

On 10 February 2026, the company released an announcement regarding a goodwill non-cash impairment of $350 million to be recognised in its full-year results, as well as the suspension of its final dividend for the year. In the same announcement, G8 reported that EBIT guidance for CY25 has not changed, suggesting management believes fundamental operations remain steady.  

Its share price tumbled in the ensuing week, falling from $0.63 on 9 February to $0.48 on 16 February. It will be interesting to see what it reports in its full-year results, to be announced next Monday.

As it stands, this one is a little too risky for me. But if you’re comfortable with a turnaround play and believe it can withstand significant headwinds, it may be cheap right now.   

IDP Education Ltd (ASX: IEL)

IDP Education is a leader in the international student market and co-owner and official provider of the IELTS English proficiency test.

IDP also delivers a range of international student services, from course advice to visa and accommodation support, to help students secure educational opportunities in Australia, Canada, Ireland, New Zealand, the UK, and the USA.

In FY25, IDP reported revenue of $888.2 million, a 14% year-on-year decline and a 29% decrease in student placements, likely driven by the tightening of policy in key markets, Australia and Canada.

The Australian Government initially proposed a hard international student cap of 270,000 for 2025, seeking to cut numbers by some 16% on 2023 figures. This was later replaced with a soft cap system, whereby educational institutions face penalties if they exceed allocations.

In Canada, the government plans to issue 408,000 study permits in 2026, with only 155,000 for newly arriving international students and the remainder for current and returning students. This represents a 7% drop from 2025 and a 16% drop from 2024.

Investors have naturally been cautious in this landscape, and IDP’s share price has fallen some 60% in the past year. But IDP has shown operational resilience and disciplined cost management in challenging conditions.

It has a solid multi-year strategic transformation plan in progress, and I think this is a business that can bounce back. If you’re comfortable with the prospect of continuing short-term volatility, I believe current prices present an attractive opportunity to invest in a quality business.

The post School’s in: Are these ASX education shares making the grade? appeared first on The Motley Fool Australia.

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Motley Fool contributor Melissa Maddison 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 Janison Education Group. 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 Sims Ltd (ASX: SGM) share price is in focus today after the company reported a 70.9% jump in underlying net profit after tax (NPAT) to $60 million and a 3.7% lift in sales revenue for the half year ended 31 December 2025.

What did Sims report?

• Underlying NPAT rose 70.9% to $60.0 million (HY25: $35.1 million)
• Sales revenue grew 3.7% to $3,778.6 million
• Underlying EBIT surged 65.9% to $121.1 million
• Statutory NPAT was a loss of $29.9 million, due to significant one-off items
• Interim dividend increased 40% to 14 cents per share
• Return on Invested Capital improved to 6.2%

What else do investors need to know?

Underlying performance was strong across most business units. Sims Lifecycle Services (SLS) delivered a 247.5% jump in underlying EBIT, driven by robust global demand for used DDR4 chips as hyperscale and AI data centre builds accelerate. Sims’ North America Metal (NAM) and Sims Adams Recycling (SAR) divisions both delivered higher trading margins and improved profitability, even as trading in processed scrap reduced sales volumes.

The Australian and New Zealand segment saw softer ferrous markets owing to high Chinese steel exports, but stronger non-ferrous trading offset some of the impact. Capital expenditure dipped while the company’s net debt position improved to $306.8 million.

What did Sims management say?

Group CEO and Managing Director Stephen Mikkelsen commented:

Underlying EBIT of $121.1 million is a good solid result in a difficult market and reflects the strength of our strategy and the disciplined execution of key initiatives.

SLS’s excellent first half is a reward for the effort and attention we have put into that division over the last five years, and it is satisfying to see the results coming through.

What’s next for Sims?

Sims expects continued strong demand for non-ferrous metals, benefiting margins in the US, Australia, and New Zealand. Structural supply pressure on DDR4 chips should support further profitability in SLS, as major technology shifts drive global demand for repurposed hardware.

However, management cautions that high Chinese steel exports will keep regional ferrous prices under pressure in the near-term. The company will continue to focus on disciplined cost management and investment in automation, logistics, and digital transformation to drive long-term growth.

Sims share price snapshot

Over the past 12 months, Sims shares have risen 51%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Sims FY26 half-year earnings: Profit surges, dividend rises 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 REA Group Ltd (ASX: REA) share price has been one of the hardest-hit S&P/ASX 200 Index (ASX: XJO) shares over the last few months. Since August 2025, it’s down around 37%, at the time of writing, as the chart below shows. That’s a big hit for one of Australia’s top shares.

This business is the owner of a number of impressive real estate-related businesses including realestate.com.au, realcommercial.com.au, PropTrack, flatmates.com.au and Mortgage Choice. It also has international investments including Indian and US real estate portal businesses.

I can see why the REA Group share price has fallen so much recently – artificial intelligence (AI) could lead to dramatic impacts to certain software businesses and REA Group could be caught up in that.

Plus, there is attention on the business with invigorated competition from Domain under new ownership. There’s also greater attention and pushback on realestate.com.au’s price increases.

It’s rare to be able to buy one of the ASX’s leading growth shares at such a discounted price.

Is this an attractive REA Group share price?

Broker UBS suggests that the “sell-off appears overdone as [the] AI narrative continues to dominate”.

UBS said while concerns are “valid”, it’s not seeing any meaningful evidence in the recent FY26 half-year result.

The broker said the valuation is attractive for a stock that’s continuing to deliver “resilient double-digit earnings growth” and it also called it the most AI defensive business of the online classifieds space.

In that result, the business reported buy yield growth of 14%, net profit growth of 9%, a dividend hike of 13% and a share buyback of up to $200 million.

REA Group is looking to utilise AI within its business to support the customer experience. UBS wrote:

Company commentary suggests while AI spend is increasing, it is a “new tool” to help optimise customer experience and substituting existing tech spend, rather than adding incremental pressure on costs growth.

Why is this one of Australia’s top shares to buy today?

UBS believes the business can deliver further yield growth and bigger profit margins, despite competitor discounting. This is a promising sign for the REA Group share price, in my view.

The broker said:

We remain confident on REA’s ability to achieve positive jaws in 2H26e due to less lumpy marketing and better listings environment as we cycle weaker comps (UBSe 2H26e +2.6%). Macro remains key risk into 2H, with another 1-2 RBA rate hikes pencilled in by our economics team, but this could drive upside risk to volumes as mortgage stress drives more stock to market.

We remain confident on REA’s ability to deliver double digit yield growth over next 3 years (UBSe +13%). For FY27e, we see a likely mid to high single digit price rise in FY27e plus mid single digit contribution from further penetration of Amax and Luxe. This is despite potential discounting behaviour from competitors.

Analysts are still expecting the business to deliver price rises in the coming years and it’s not actually worried by competitors or AI because REA Group still drives significant buyer leads and it has the biggest audience. Additionally, AI currently remains a very small part of REA Group traffic:

Industry feedback suggests REA still delivers largest number of buyer enquiry leads to agents, driven by continued growth in audiences (146.1m avg monthly visits in 1H26, vs 132.2m in FY25). Management noted traffic from AI remains <1% and recently declined (although early days), further suggesting strength in direct eye-balls to platform.

Using the forecast from UBS, the REA Group share price is valued at 35x FY26’s estimated earnings.

The post A rare opportunity to buy 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

More reading

• BHP Group posts 28% profit jump and higher dividend in half-year earnings
• Sims FY26 half-year earnings: Profit surges, dividend rises
• SEEK delivers double-digit growth and record dividend in FY26 half-year results
• Deterra Royalties declares record profit and bigger dividend for 1H26
• Judo Capital: profit surges 32% and loan growth outlook rises

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.

The SEEK Ltd (ASX: SEK) share price is in focus after the company posted strong half-year results, highlighted by a 21% lift in sales revenue and a record interim dividend.

What did SEEK report?

• Sales revenue rose 21% to $647 million
• Net revenue up 12% to $601 million
• EBITDA increased 19% to $267 million
• Adjusted profit jumped 35% to $104 million
• Reported loss of $178 million, impacted by a $356 million Zhaopin impairment
• Record fully franked interim dividend of 27 cents per share, up 13%

What else do investors need to know?

SEEK strengthened its lead in the Australian recruitment market, with its placement share now 4.9 times its nearest competitor. While paid job ad volumes in ANZ dipped slightly due to macroeconomic factors, AI-enabled product innovations boosted pricing and yield. Asia’s revenue growth was more modest at 4%, with volumes falling but yield climbing 17% on upgraded ad tiers.

On the cost front, SEEK continued investing heavily in AI technology, product development, and infrastructure, keeping operating costs well below revenue growth. The company completed the reacquisition of Sidekicker in May 2025, with Sidekicker’s results now included.

What did SEEK management say?

CEO and Managing Director Ian Narev said:

This was another half of demonstrable progress across all our strategic priorities. Our placement share lead in Australia grew to 4.9x our nearest competitor; and whilst Asia declined slightly, underlying marketplace metrics are strong and improving across the board. New products introduced last year are driving customer choice, and creating tangible value that hirers are willing to pay for. The resulting yield growth led to double digit revenue growth, even as macroeconomic conditions continued to impact volumes. We maintained our commitment to investment, at the same time as maintaining our commitment to operating leverage. By prioritising discretionary capital towards grow-the-business activity such as AI focussed product development and containing run-the-business costs, we kept cost growth well below revenue growth despite significant investment. The result was 19% EBITDA growth and 35% Adjusted Profit growth.

What’s next for SEEK?

SEEK has upgraded its full-year FY2026 guidance, now expecting net revenue of $1.19 billion to $1.23 billion and EBITDA of $530 million to $550 million. Revenue growth is predicted to remain in the low double digits, with continued focus on AI-driven product enhancements and improved marketplace execution. The SEEK Growth Fund is also moving to divest its stake in Employment Hero in 2026, which could unlock further value.

Management remains optimistic about SEEK’s data-led advantages and technology investment, despite a mixed short-term economic outlook in parts of Asia and Australia. The group is emphasising innovation, operating leverage, and sustained growth as it navigates evolving hiring landscapes.

SEEK share price snapshot

Over the past 12 months, SEEK shares have risen 8%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

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The post SEEK delivers double-digit growth and record dividend in FY26 half-year results appeared first on The Motley Fool Australia.

More reading

• Deterra Royalties declares record profit and bigger dividend for 1H26
• Judo Capital: profit surges 32% and loan growth outlook rises
• Ventia scores $107m defence contract boost: What investors need to know
• Challenger earnings: Statutory NPAT surges 369% in H1 FY26
• Reliance Worldwide half-year earnings: profit falls, dividend steady

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 Deterra Royalties Ltd (ASX: DRR) share price is in focus today after the company posted a record first half NPAT of $87.2 million, up 36% year-on-year, and declared a fully franked 12.4 cent interim dividend, up 38%.

What did Deterra Royalties report?

• Revenue from continuing operations: $117.2 million, up 12%
• Net profit after tax (NPAT): $87.2 million, up 36%
• Underlying EBITDA: $109.1 million (margin 93%), up 11%
• Net debt reduced to $148.8 million (from $308.5 million at end December 2024)
• Fully franked interim dividend of 12.4 cents per share (75% of NPAT), up 38%
• Divestment of non-core precious metal assets for around $124 million, achieving a ~28% pre-tax IRR

What else do investors need to know?

Deterra Royalties saw solid production from its cornerstone Mining Area C (MAC) iron ore asset, with first half output rising 6% to 72.6 million wet metric tonnes. The company also made substantial progress at its Thacker Pass lithium project in Nevada, including a US$435 million first drawdown of a U.S. Department of Energy loan and a further DOE equity investment in the project joint venture.

The divestment of non-core precious metals assets (acquired via the Trident Royalties transaction) allowed Deterra to pay down debt and strengthen liquidity, leaving $344 million in undrawn facilities for future opportunities. Net tangible assets per share improved, and the balance sheet remains conservative with gearing at just 6%.

What’s next for Deterra Royalties?

Looking ahead, Deterra will continue to focus on maximising returns from its MAC and Thacker Pass royalty streams, while keeping a close eye out for new royalty investment opportunities. The company plans to maintain its dividend payout at 75% of NPAT, supported by steady cash flows and a strong balance sheet.

Ongoing project development at Thacker Pass is progressing towards the late 2027 target for first lithium production, with detailed engineering now 80% complete. Deterra will also look to deploy its available debt capacity carefully as new value-accretive opportunities arise.

Deterra Royalties share price snapshot

Over the past 12 months, Deterra Royalties shares have declined 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

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The post Deterra Royalties declares record profit and bigger dividend for 1H26 appeared first on The Motley Fool Australia.

More reading

• SEEK delivers double-digit growth and record dividend in FY26 half-year results
• Judo Capital: profit surges 32% and loan growth outlook rises
• Ventia scores $107m defence contract boost: What investors need to know
• Challenger earnings: Statutory NPAT surges 369% in H1 FY26
• Reliance Worldwide half-year earnings: profit falls, dividend steady

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 Judo Capital Holdings Ltd (ASX:JDO) share price is in focus today after the specialist business lender reported a 32% jump in net profit after tax (NPAT) to $59.9 million for the half year ended 31 December 2025, alongside 7% growth in its loan book.

What did Judo Capital report?

• Statutory NPAT of $59.9 million, up 32% on the prior half and 46% year-on-year
• Profit before tax (PBT) rose to $86.5 million, up 26% half on half and 53% on the prior corresponding period
• Gross loans and advances (GLA) grew 7% since June to $13.4 billion, 15% higher year on year
• Net interest margin (NIM) held steady at 3.03%, with 2H26 NIM guidance upgraded to around 3.15%
• Cost-to-income (CTI) ratio improved to 48.5%, 890 basis points lower than a year ago
• Capital position remains strong, with CET1 ratio at 12.6%

What else do investors need to know?

Judo continues to grow its lending at rates above the broader banking system, supported by a customer-led value proposition and productivity gains. The bank’s deposit base also hit a new high of $10.9 billion, boosted by the launch of an intermediated at-call savings account, with further product innovation planned.

Asset quality remains stable, though there was a small rise in accounts more than 90 days past due, which the bank says relates to a handful of exposures across several sectors. Judo successfully completed a $150 million Tier 2 capital issue in October, underpinning continued growth without the need for more core equity.

What did Judo Capital management say?

CEO and Managing Director Chris Bayliss said:

Today’s result demonstrates that Judo continues to successfully execute against its clear and simple strategy. We are on track to achieving our existing FY26 guidance for significant profit growth, and realising the operating leverage inherent in our business model… Our passion to support SMEs continues to guide everything we do, and I’m very confident about the strength of our business as we move into the second half of the year and beyond.

What’s next for Judo Capital?

Judo reaffirmed its FY26 guidance, expecting profit before tax to land between $180 million and $190 million, and upgraded its loan growth range to $14.4–$14.7 billion. Management is targeting ongoing productivity improvements, further product launches, and deepening its focus in regional and agribusiness lending.

The bank expects operating leverage to improve further in the second half of FY26, with a cost-to-income ratio below 50% and an anticipated return on equity in the low-to-mid teens as it continues to scale.

Judo Capital share price snapshot

Over the past 12 months, Judo Capital shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

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The post Judo Capital: profit surges 32% and loan growth outlook rises appeared first on The Motley Fool Australia.

More reading

• SEEK delivers double-digit growth and record dividend in FY26 half-year results
• Deterra Royalties declares record profit and bigger dividend for 1H26
• Ventia scores $107m defence contract boost: What investors need to know
• Challenger earnings: Statutory NPAT surges 369% in H1 FY26
• Reliance Worldwide half-year earnings: profit falls, dividend steady

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.